Follow us on Twitter!
Blog Header Logo
DG&A's Transportation Consulting Blog
Subscribe to this list via RSS Blog posts tagged in Railway Association of Canada

Pierre Berton, the late, famous Canadian author noted in his book, “The Last Spike,” that CP Rail has held a respected place in the country’s history.  He wrote that “no other private company, with the single exception of Hudson’s Bay Company, has had such an influence on the destinies of the nation.” For most of the past 15 years, CP Rail faced stiff competition from CN Rail as Paul Tellier and Hunter Harrison led the company’s move from a bloated government run enterprise to a highly profitable public company.  In fact CN’s operating ratio of 61.3 is not only the best among the major North American railroads, it is one of the best of any company in the transportation industry.

The fact that CP Rail lagged so far behind CN Rail and the other class 1 railways in North America led the activist investor Bill Ackman, of Pershing Square Capital, to launch his “palace revolt” proxy battle that resulted in the replacement of CP’s former President with Hunter Harrison, whom he brought out of retirement to drive the railway’s profit improvement.

As we pass through the last quarter of this year, Canada’s two largest railroads are heading down separate tracks.  With an operating ratio is the low 80’s, Mr. Harrison has embarked on a series of actions to reduce costs through improved asset utilization.  This is another way of saying that CP Rail is planning to move its equipment more quickly and efficiently, to become Canada’s second “precision” railroad.   It is seeking to accomplish this by undertaking a series of initiatives.  These include:

  • Building trains at CP’s intermodal terminal in Vancouver with blocks of cars for long haul destinations. This reduces stops and streamlines connections.
  • Increasing average train lengths to 7,000 to 12,000 feet
  • Speeding up the fueling of trains
  • Improving daily scheduling
  • Investing $1.2 billion in 2012 and $1 billion in 2013 on key infrastructure projects
  • Working with customers at both ends to improve coordination

The net result of these changes is that CP Rail now provides 4 day transit times between Vancouver and Chicago and Toronto.  These changes represent half of the transcontinental trains that CP launches daily across its network.  Mr. Harrison is not expecting an overnight drop in the company’s operating ratio.  He told Bloomberg News that he is targeting about 65 percent in the next four years.

Shippers appear to be taking notice of improved service on both major Canadian railways. 

Hits: 21449
Continue reading 0 Comments

Most Recent Posts


Tag Cloud

Training New Hires Doug Nix Freight Shuttle System CSA scores Werner truck driver Training BNSF consumer centric MPG freight payment freight audit Software Advice shipper-carrier collaboration small business Failure 3PL drones NS New York Times Muhammad Ali Warehousing Otto Packaging Microsoft transportation news CITA Shipper Pulse Survey Ferromex 2014 freight forecast derailments 2014 economic forecast Canada's global strategy Sales Training $75000 bond Blogging Hudsons Bay Company TransForce mentoring Celadon RFP Masters in Logistics Politics ShipMax risk management Map-21 Reshoring CN Sales Social Media in Transportation Trump NCC Freight Rates KCS Omni Channel CRM ProMiles EBOR transportation newspaper Whole Foods freight RFP LinkedIn FCA freight transportation in 2011 freight broker Business Transformation Strategy Rate per Mile Facebook Conway CSA Comey Shipper Business skills University of Tennessee TMP Worldwide solutions provider freight bid David Tuttle Transportation intermodal Driving for Profit freight cost savings Rail US Economy Bobby Harris Spanx the future of transportation Emergent Strategy Social Media LCV's driverless freight transportation conference Transportation Buying Trends Survey economy autonomous vehicles Surety bond Trucking Inbound Transportation Accessorial Charges Canada-U.S. trade agreement YRC Toronto Consulting 2014 freight volumes broker bonds Finance and Transportation MBA automation Climate Change professional drivers pipelines rail safety Harper Davos speech Amazon last mile delivery Global Transportation Hub Job satisfaction FMCSA Freight Recession e-commerce NAFTA dynamic pricing CSX Scott Monty Driver Shortage employee termination buying trucking companies UP Deferred Packaging Freight Carriers Association of Canada Fire Phone Tracy Matura USA Truck LTL customer engagement Crisis management bulk shipping freight audit US Auto Sales coaching economic forecasts for 2012 freight rate increases 2015 Economic Forecast Distribution FCPC Canadian freight market Global experience 3PLTL NMFC home delivery carrier conference Canadian truckers IANA Adrian Gonzalez cheap oil Carriers FuelQuest driver shortages Infrastructure driver Freight contracts Management tanker cars financial management Dedicated Contract Carriage freight payment Derek Singleton network optimization Education Life Lessons Canada U.S. trade FMS home delibery freight forwarders shipper-carrier contracts BlueGrace Logistics Cleveland Cavaliers Career Advice ELD Wal-Mart Yield Improvement Donald Trump Success failure entrepreneur Load broker energy efficiency online shopping CP Rail robotics business start-up Transport Capital Partners (TCP) US Election Truckload Stephen Harper Trade Vision JB Hunt Transportation service shipping wine hiring process Freight Capacity Canadian Transportation & Logistics Transcom Fleet Leasing Associates dimensional pricing Schneider Logistics 2013 Economic Forecast peak season Crude Oil by Rail Freight Right Shoring Dedicated Trucking selling trucking companies Success US Manufacturing Transloading Freight Matching Entrepreneur Colilers International capacity shortage Leadership marketing Freight Management Doug Davis truck drivers routing guide freight agreements Railway Association of Canada TMS shipper-carrier roundtable broker security natural disasters trade freight costs 360ideaspace Rotman School of Business Grocery Loblaw Sales Management Canada Outsourcing Sales CN Rail future of freight industry Business Strategy Horizontal Supply Chain Collaboration APL Load Boards Retail transportation Canadian economy capacity shortages US Housing Market Keystone Pipeline 2012 Transportation Business Strategies. Jugaad trucking company acquisitions Dan Goodwill fuel surcharge supply chain management Search engine optimization shipping transportation audit Transplace Regina Retail Twitter Broker freight transportation President Obama Swift

Blog Archives