Canadian Know-How
The New York Times (subscription required) has a great article today on the Canadian National Railway. CN is one of the most profitable railways in the world and really shows that railroads not only can be profitable but are still a vital part of a nation's economy:
Canadian National, which has transformed itself over the last decade from a lumbering government agency into the envy of North American railroads, recently completed a share buyback worth $655 million and gave notice of plans to raise up to $1 billion in debt. Cash flow is at record levels, and the share price has surged almost 50 percent so far this year.
And, more importantly:
"No American railroad holds a candle to CN at the moment in terms of efficiency," said Frank N. Wilner, a former chief of staff at the Surface Transportation Board, which regulates the railroad industry in the United States.
So what is Canada National doing differently?
CN is looking beyond the boundaries of rail transportation to realize that the game is now much larger. It's about controling all methods of cargo transpot. CN is signing up independent truckers as contractors so it can move cargo containers in and out of yards quickly and on it's own schedule. It's also doing things such as purchasing Great Lakes Transportation which not only controls 382 miles of rail track, but owns 8 ships that carry iron ore.
Railroads have become just one part of the game. Becoming the transportation company of choice requires using the best methods without concern for being tied to the past -- and, the the Times article is right, CN is heading toward being the leader in that field.
Post Author:
amg | 11:17 AM |
Link
|
TrackBacks
CN isn't a passanger railway. I wonder how much money VIA Rail Canada is making.
Yeah, that was the point -- even American cargo railways aren't doing as well as CN.
I doubt VIA rail is well at all.
