Railroad News

4/26/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 4/25/2017 Rail News: Canadian National Railway - CN
CN raised its outlook for the year after reporting "solid" first-quarter results that included increases in revenue, earnings and volumes, the Class I's executives announced yesterday.CN's Q1 volume included a 14 percent increase in Western Canadian grain that moved over the network, despite more demanding winter conditions this year compared to 2016, President and Chief Executive Officer Luc Jobin said in a press release.Revenue rose 8 percent to 3.2 billion in Canadian dollars, net income increased 12 percent to CA$884 million and diluted earnings per share (EPS) climbed 16 percent to CA$1.16 compared with last year's Q1 results.Adjusted net income rose 11 percent to CA$879 million, with adjusted diluted EPS increasing 15 percent to CA$1.15.Compared with the same period last year, carloadings for the quarter were up 9 percent and revenue ton-miles, 14 percent.CN posted an operating ratio of 59.4 percent, up 0.5 of a point from the prior-year quarter.Jobin described CN's results as a "solid response" in accommodating the strong demand during the first quarter."Our ongoing investments in people, equipment and infrastructure continue to position us well to leverage CN's industry-leading operational performance and superior customer service," Jobin said. "With a strong start in Q1 and an increased volume outlook for the rest of the year, I am pleased to announce an upward revision to our 2017 financial outlook."CN now aims to deliver a 2017 adjusted diluted EPS in the range of CA$4.95 to
CA$5.10, versus last year's adjusted diluted EPS  of CA$4.59. On Jan. 24, the company's financial outlook called for mid-single-digit growth this year.Additionally, the Class I raised its capital expenditures program by CA$100 million to CA$2.6 billion, of which CA$1.6 billion is still targeted toward track infrastructure projects. The additional capital investment will be used to purchase 22 locomotives and other projects to support growth.The increase in revenue was mainly attributable to higher volumes of Canadian and U.S. grain, frac sand, coal exports, overseas intermodal traffic, and finished vehicles; freight rate increases; and higher applicable fuel surcharge rates. Those factors were partly offset by the negative translation impact of a stronger Canadian dollar on U.S.-dollar-denominated revenues. Operating expenses rose 9 percent, primarily due to higher fuel prices and costs associated with higher volumes, partly offset by the positive translation impact of a stronger Canadian dollar on U.S.-dollar-denominated expenses. Contact Progressive Railroading editorial staff. More News from 4/25/2017

4/25/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 4/12/2017 Rail News: Canadian National Railway - CN
Badger Mining Corp., a silica sand supplier, offers unit train capabilities.Photo – Badger Mining Corp.

4/12/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 4/7/2017 Rail News: Canadian National Railway - CN
CN yesterday recognized 32 shippers for employing sustainability practices that are aligned with the objectives of the Class I's EcoConnexions program.Through its EcoConnexions Partnership Program, CN seeks partner companies that pledge to reduce their carbon emissions and increase energy efficiency — a central focus of the Class I's sustainability objectives, CN officials said in a press release.The 32 shippers that earned recognition from the railroad are Alcoa Corp.; Atlantic Container Line; Bunge North America; Bonduelle Canada; Canfor; Cenovus Energy Inc.; CMA CGM (America) LLC; COSCO Shipping Lines (North America); Domtar Corp.; E. I. du Pont de Nemours and Co.; Fairmount Santrol; Ford Motor Co.; Hapag-Lloyd; Kruger Products LP; Labatt Breweries of Canada; Loblaws Inc.; Maersk Line; MOL; Mondelez International; NYK Line; OOCL (Orient Overseas Container Line); PepsiCo Canada; Resolute Forest Products; Teck Resources Ltd.; Tembec; Tenaris; UPS; Verso Corp.; Walmart Canada; West Fraser; Weyerhaeuser; and Yang Ming Group."CN is proud to partner with these companies and congratulates each of them on their sustainability efforts," said Jean-Jacques Ruest, CN's executive vice president and chief marketing officer. "In partnership with Tree Canada, [we] will plant 100,000 trees in the spring in recognition of [these] customers' commitment to sustainable business practices." Contact Progressive Railroading editorial staff. More News from 4/7/2017

4/7/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 3/30/2017 Rail News: Canadian National Railway - CN
The Transportation Safety Board of Canada (TSB) has determined a broken wheel, caused by a service-related failure, led to a CN train derailment in January 2016 near Webster, Ontario.The accident occurred Jan. 9, 2016, as the train was moving west on the Redditt Subdivision and experienced a train-initiated emergency brake application near Webster. A total of 26 cars derailed, including six Class 111 residue tank cars that last contained diesel fuel. There were no injuries and no product was released, according to a TSB press release.In its investigation report released yesterday, the TSB found that a progressive fracture on a wheel of the second car from the head end eventually allowed the wheel to move inboard on the axle and derail.The train continued to travel on the track about 8 more miles before the cars derailed, setting off the train-initiated emergency brake application.About 14 minutes before the accident, the train passed a wayside inspection system (WIS) where a wheel impact load detector (WILD) recorded the impact load of the defective wheel. While the reading exceeded the Association of American Railroads (AAR) condemning limits, CN WILD guidelines permitted the wheel to remain in service without restriction until it reached its certified car inspection location. The development and implementation of WILD technology has been an industry initiative to enhance rail safety by proactively identifying wheels with defects that can cause derailments or damage to track infrastructure. However, if railway WILD guidelines do not provide adequate guidance for dealing with wheel impacts that are condemnable under AAR rules, there is an increased risk that wheels with emerging defects will not be identified and removed from service before progressing to failure, TSB officials said.In response to a 2011 TSB rail safety advisory, Transport Canada (TC) indicated it would create a joint TC-industry forum to comprehensively review WIS and WILD criteria. However, TC has made no progress on guidelines, standards or rules for use of WILD technology, according to the TSB."In the absence of WILD condemning limits within the TC-approved Railway Freight Car Inspection and Safety Rules and/or other related TC guidance, WILD company guidelines may not be sufficiently robust to consistently protect against wheel failures," the TSB concluded. Contact Progressive Railroading editorial staff. More News from 3/30/2017

3/30/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 3/28/2017 Rail News: Canadian National Railway - CN
CN and Duluth Cargo Connect yesterday announced a new alliance to establish the first rail-served intermodal container ramp at the Twin Ports in Duluth, Minn., and Superior, Wis.Duluth Cargo Connect, a working partnership of the Duluth Seaway Port Authority and Lake Superior Warehousing Co., will operate the facility at the port's Clure Public Marine Terminal, port authority and CN officials said in a press release.Loaded import containers from ports originating on all three coasts served by the railroad will arrive in Duluth via CN's rail network.The new intermodal location "instantly connects" the region to containerized imports and exports, said Vanta Coda, the port authority's executive director."Our truck traffic has grown exponentially in recent years, and now we've partnered with CN to bring a whole new mode of efficient transportation services to the Twin Ports," Coda added.The partnership with Duluth Cargo Connect "opens up a new logistics supply chain and growth opportunities for the port's partners and shippers in the region," said JJ Ruest, CN executive vice president and chief marketing officer. Contact Progressive Railroading editorial staff. More News from 3/28/2017

3/28/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 3/23/2017 Rail News: Canadian National Railway - CN
CN and TFI International Inc. today announced a renewed long-term partnership to increase domestic intermodal business across Canada.The pact aligns CN's transcontinental rail network and the trucking and logistics company with a range of services that include truckload, less-than-truckload and package and courier, officials from both companies said in a press release.TFI International has increased its operating divisions' presence in the domestic intermodal market and its companies have a combined 100 years of collaboration with the Class I, said JJ Ruest, CN executive vice president and chief marketing officer."We believe our expanding partnership will help both our organizations provide more consistent, reliable service for our shared and growing customer base," Ruest said.The renewed partnership will "ensure best-in-class service" for the companies' customers, said TFI International Chairman, President and Chief Executive Officer Alain Bedard."This agreement is in line with TFI's stated objective to grow its intermodal presence in Canada," Bedard said. Contact Progressive Railroading editorial staff. More News from 3/23/2017

3/23/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 3/21/2017 Rail News: Canadian National Railway - CN
CN announced yesterday it has reached a tentative agreement to renew a contract with the International Brotherhood of Electrical Workers (IBEW) System Council 11 that covers 700 signals and communications employees in Canada.Details of the agreement are being withheld pending ratification by the union's membership. CN anticipates learning the ratification vote results in May, according to a company press release.On March 17, IBEW Council 11 filed a notice to strike effective at midnight today if negotiations with CN did not reach a tentative settlement. The current contract expired Dec. 31 2016, according to Council 11's website. Contact Progressive Railroading editorial staff. More News from 3/21/2017

3/21/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 3/3/2017 Rail News: Canadian National Railway - CN
The Alberta Chamber of Commerce has recognized CN for excellence in aboriginal relations. The Class I received the chamber's Alberta Business Award of Distinction in the Indigenous Relations—Best Practices category. The award was presented last week at the chamber's annual Alberta Business Awards of Distinction event in Edmonton, Alberta, according to a CN press release.CN operates within or adjacent to nearly 200 different reserve lands of more than 110 First Nationals and some Metis territories in eight provinces."This award is a clear recognition of CN's commitment to Aboriginal Relations and our Aboriginal Vision adopted in 2013," said Melanie Allaire, lead of the Aboriginal Affairs team at CN. "CN remains committed to proactively developing respectful and mutually-beneficial relationships with all Aboriginal people across Alberta and Canada."The Alberta Business Awards of Distinction recognize businesses or organizations that demonstrate outstanding achievement and contribution to their community while developing business acumen and management practices to ensure long-term stability. Contact Progressive Railroading editorial staff. More News from 3/3/2017

3/3/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 2/10/2017 Rail News: Canadian National Railway - CN
CN plans to spend 2.5 billion Canadian dollars on its 2017 capital program to improve core infrastructure, the Class I announced yesterday.Consistent with last year's investment, the railroad will spend about CA$1.6 billion on track infrastructure, including the replacement of 2.2 million rail ties, installation of more than 600 miles of new rail, work on bridges, branch line upgrades and other general track maintenance, according to a CN press release.In addition, the Class I will invest CA$400 million this year on positive train control (PTC) implementation along parts of its U.S. network. The railroad will install the hardware on 3,500 route-miles. CN plans to invest US$1.2 billon on the entire PTC project by 2020.Moreover, CN officials anticipate spending CA$500 million on equipment, projects and information technology initiatives to serve growing business, improve service for customers and advance safety, they said. That spending includes planned growth investments to capitalize on Canadian West Coast port expansions, key customer projects and safety technology investments such as wayside inspection systems and track testing vehicles."We once again are investing with a focus on advancing safety, service and productivity through infrastructure maintenance, strategic growth initiatives and new technology," said CN President and Chief Executive Officer Luc Jobin. Contact Progressive Railroading editorial staff. More News from 2/10/2017

2/10/2017    

Rail News: Canadian National Railway - CN

Rail News Home Canadian National Railway - CN 1/25/2017 Rail News: Canadian National Railway - CN
CN reported yesterday its net income rose 8 percent in fourth-quarter 2016 and 3 percent for the full year compared with 2015.The Class I posted Q4 2016 net income of 1 billion Canadian dollars, or CA$1.32 diluted earnings per share, compared with Q4 2015 net income of CA$941 million, or CA$1.18 diluted earnings per share, according to a CN press release.Revenue in the quarter increased 2 percent to CA$3.2 billion compared with Q4 2015, as carloads rose 3 percent and revenue per ton mile jumped 4 percent."Despite facing difficult winter conditions in December, CN delivered very strong fourth-quarter results and throughout 2016 demonstrated once again its ability to perform well in a mixed economic environment," said CN President and Chief Executive Officer Luc Jobin.For full-year 2016, CN posted net income of CA$3.64 billion, or CA$4.67 diluted earnings per share, compared with 2015 net income of $3.5 billion, or CA$4.39 diluted earnings per share.Revenue for 2016 decreased 5 percent to CA$12 billion compared with 2015. Revenue increases in automotive (6 percent), forest products (4 percent), and grain and fertilizers (1 percent) were offset by revenue decreases in coal (29 percent), metals and minerals (15 percent), petroleum and chemicals (11 percent) and intermodal (2 percent), company officials said. The decrease in total revenue was primarily due to lower volumes in crude oil, coal and frac sand, as well as lower applicable fuel surcharge rates, they said.Carloadings in 2016 declined 5 percent compared with 2015.CN's operating expenses for the year decreased 8 percent to CA$6.72 billion. The reduction in expenses was attributed mainly to cost-management initiatives, decreased traffic, lower pension expenses and fuel costs, which were partly offset by the negative translation impact of a weaker Canadian dollar on U.S. dollar-denominated expenses.CN's operating ratio for 2016 was 55.9 percent, an improvement over the 2015 operating ratio of 58.2 percent."We saw weaker volumes during the year, but quickly adjusted as our dedicated team of railroaders maintained its focus on operational efficiency, while continuing to provide quality service to our customers and improve our safety performance," Jobin said. "Overall, the economy remains challenging, but we remain optimistic and expect to see moderate volume growth in 2017," he added. Contact Progressive Railroading editorial staff. More News from 1/25/2017