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Jan
29

Strike, 'weak' freight demand hit CN's bottom line in Q4

CN yesterday announced that fourth-quarter 2019 financial results were affected by an eight-day labor strike and "weak" freight demand, posting decreases in revenue, earnings per share and operating income.

Revenue during the quarter compared with the previous year's quarterly results declined 6 percent to CA$3.6 billion; diluted earnings per share (EPS) fell 22 percent to CA$1.22, adjusted diluted EPS dropped 16 percent to CA$1.25; and operating income and adjusted operating income each tumbled 16 percent to CA1.2 billion and CA$1.25 billion, respectively.

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Jan
09

CN, NorFalco sign long-term pact to move sulphuric acid

Rail News Home Canadian National Railway - CN 1/9/2020 Rail News: Canadian National Railway - CN
CN and NorFalco Sales have signed a new multiyear agreement that will provide freight transportation of sulphuric acid from NorFalco's rail-served production facilities in Sudbury, Ontario, and Rouyn-Noranda and Valleyfield, Quebec.The agreement furthers CN's strategic partnership with NorFalco by reaching new facilities throughout eastern Canada, CN President and Chief Executive Officer JJ Ruest said in a press release."Safety is a core value at CN as it is for NorFalco, and NorFalco has consistently won CN’s Safe Handling Award recognizing customers that meet strict standards for the safe handling and shipment of regulated products," Ruest said. "CN will continue working closely with NorFalco thanks to this renewed long-term partnership."NorFalco CEO Kunal Sinha said the CN agreement will also help his company expand strategically."This agreement provides NorFalco, and our customers, with a reliable rail transportation infrastructure, underpinned with a shared commitment to safety in handling and moving our product throughout our diversified customer base,” said Sinha. "We anticipate this agreement will further our strategic growth supported with manageable transportation costs."A division of Glencore Canada Corp., NorFalco is one of the largest merchant marketers of sulfuric acid in North America. The company markets and distributes about 2 million tons of sulfuric acid per year.

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Dec
20

CN: Network performance is back to normal

Rail News Home Canadian National Railway - CN 12/20/2019 Rail News: Canadian National Railway - CN
"We will remain focused on safety as we continue to clear the backlog caused by the work stoppage," said CN President and Chief Executive Officer JJ Ruest.Photo – cn.ca

CN announced yesterday that less than a month after an eight-day labor strike ended, the Class I's train movements have recovered to pre-strike ranges.

The strike caused CN's network to run at about 10 percent capacity. Every strike day can cause several days of backlog, requiring time for the network to return to normal operational ranges, CN officials said in a press release.

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Dec
18

CN to move rail traffic control operations to Edmonton

Rail News Home Canadian National Railway - CN 12/18/2019 Rail News: Canadian National Railway - CN
For efficiency purposes, CN rail traffic control operations for northern Ontario will be controlled from Edmonton, Alberta, starting in spring 2020, CN officials confirmed yesterday."It should be noted that this office (northern Ontario) has been in Montreal only recently, since CN constantly assesses its needs and makes decisions on an operational and continuous basis," CN officials said in a prepared statement. "Fewer than 15 employees are affected by this change."In accordance with the labor contract in force, employees affected by the change have been notified of the change, they said."We are currently in discussions with the union involved in determining the needs of these relocations," CN officials added. "Employees who do not wish to be relocated will be entitled to the benefits provided for in their collective agreement."Rail traffic controllers coordinate train movements across a given territory and protect personnel working on the tracks. CN currently has three rail traffic control centers in Canada: one in Montreal, one in Edmonton and one in Toronto. CN's statement followed Teamsters Canada's announcement last week that CN supervisors had been telling workers that the Class I plans to move its rail traffic control center in Montreal to Edmonton and that the railroad had begun transferring positions.Nearly all rail traffic controllers in Canada are represented by Teamsters Canada Rail Conference (TCRC).CN risks losing experienced workers since some employees may not be able to leave their communities, said TCRC President Lyndon Isaak in a press release.
 

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Dec
16

CN moving traffic controller jobs from Montreal to Edmonton, union says

Rail News Home Canadian National Railway - CN 12/16/2019 Rail News: Canadian National Railway - CN
Over the past several weeks, CN supervisors have been telling workers that the Class I has plans to move its rail traffic control center in Montreal to Edmonton, Teamsters Canada officials announced late last week. More than 100 rail traffic controller positions in Montreal are at risk at the center, union officials said in a press release.  CN already has begun transferring 20 positions to Edmonton, Alberta, they said. Nearly all rail traffic controllers in Canada are represented by Teamsters Canada Rail Conference (TCRC). CN risks losing experienced workers since some employees may not be able to leave their communities, said TCRC President Lyndon Isaak. “CN will end up losing experienced staff and their knowledge of the rail network, which could lead to dangerous situations for railroaders, track maintenance crews and the general public," Isaak said. Rail traffic coordinators coordinate train movements across a given territory and protect personnel working on the tracks. CN has three rail traffic control centers in Canada: one in Montreal, one in Edmonton, and one in Toronto, which the company is in the process of closing.  The Edmonton and Montreal centers control the majority of rail traffic in western and eastern Canada, respectively, union officials said. A CN spokesman did not return a request for comment prior to press time. 

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Dec
16

Product update: Friction modifiers and rail lubrication systems

PROTECTOR® X is L.B. Foster’s newest wayside unit.Photo – L.B. Foster Co.

—Compiled by Michael Popke

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Dec
12

CN grain shipments return to pre-strike pace

Rail News Home Canadian National Railway - CN 12/12/2019 Rail News: Canadian National Railway - CN
CN's movement of Canadian grain is back to pre-strike pace after recovering from an eight-day strike that occurred in November, the Class I announced today.CN spotted more than 6,800 hopper cars per week during the first two weeks of November, which were the 14th and 15th weeks of the crop year and its high point, CN officials said in a press release.The strike prevented CN from accepting new orders during Week 17, as CN was operating at only 10 percent of overall capacity. By the second week of December (week 19), CN returned to shipping at peak levels, as well as taking on all customer hopper demand for the second and third weeks of December, company officials said."After a tough harvest due to adverse weather and an eight-day labor stoppage, our railroaders have been hard at work to get movements back on track,” said Allen Foster, vice president of bulk at CN. “Our disciplined approach to recovery after the strike has allowed CN to return to a normal pace, as did all the investments we have made in track infrastructure and new locomotives over the past two years."During the crop year's first 18 weeks, CN set an all-time record month in October, with 2.8 million metric tons (MMT). The Class I set an all-time record week in Week 11, which ran from Oct. 13-19, at 685,187 metric tons.In late November, CN and the Teamsters Canada Rail Conference have reached a tentative contract agreement, ending a week-long strike involving about 3,200 CN conductors and rail yard crews in Canada. Employees returned to work on Nov. 26.

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Dec
04

CN, Teck announce long-term coal shipping agreement

CN and mining company Teck Resources Ltd. today announced a long-term rail agreement for the shipping of steelmaking coal from Teck's four British of Columbia operations between Kamloops and Neptune Terminals, and other west coast ports.

The agreement, which runs from April 2021 to December 2026, will enable Teck to significantly increase shipment volumes through an expanded Neptune Terminals.

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Dec
03

CN revises full-year outlook to include strike's impact

Rail News Home Canadian National Railway - CN 12/3/2019 Rail News: Canadian National Railway - CN
"Our discipline on our recovery plan is delivering results,” said JJ Ruest, president and chief executive officer of CN.Photo – cn.ca

CN announced today that its strike-recovery plan is on track and that the company is revising its 2019 full-year financial guidance to include the impact of the eight-day strike.

"Our discipline on our recovery plan is delivering results,” said JJ Ruest, president and chief executive officer of CN, in a press release. "While we expect to take some time and we remain dependent on favorable weather, we are pleased by how things are progressing."

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Dec
02

CN launches post-strike recovery plan

Rail News Home Canadian National Railway - CN 12/2/2019 Rail News: Canadian National Railway - CN
CN last week announced it was implementing a recovery plan following the end of an eight-day strike.The strike — which involved more than 3,000 CN conductors and rail-yard workers — caused CN's network to run at about 10 percent of capacity, company officials said in a press release.Every strike day can cause several days of backlog, requiring time for the network to return to its pre-strike operation levels, they said."CN remains focused on growth and is already in recovery mode as our employees return to their normal shifts,” said JJ Ruest, CN's president and chief executive officer. “Overriding emphasis will be placed on safety as we implement a disciplined and progressive ramp up to avoid congestion that can overwhelm parts of the supply chain that are the most vulnerable.”As it initiates the recovery plan, the railroad will remain in direct contact with customers to collect feedback on the progress, CN officials said.Last week, CN and the Teamsters Canada Rail Conference announced they had reached a tentative contract agreement, ending the strike.

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Nov
26

CN, union reach tentative pact to end strike

Rail News Home Canadian National Railway - CN 11/26/2019 Rail News: Canadian National Railway - CN
" CN is preparing to resume full rail operations as soon as possible,” said CN President and Chief Executive Officer JJ Ruest.Photo – cn.ca

CN and the Teamsters Canada Rail Conference have reached a tentative contract agreement, ending a week-long strike of about 3,200 CN conductors and rail yard crews in Canada.

The agreement will allow CN employees to return to work at 2 p.m. local times today, with yard assignment to start at 6 a.m. local times Wednesday, CN officials said in a press release.

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Nov
21

CN calls for binding arbitration to settle strike, Alberta calls on Trudeau to intervene

In its first public statement since more than 3,000 of its train conductors and rail-yard workers went on strike earlier this week, CN today advocated for voluntary binding arbitration to help settle the collective bargaining impasse between the Class I and the Teamsters Canada Rail Conference (TCRC-CTY).

In a statement posted on the company's website, CN President and Chief Executive Officer JJ Ruest said the company has offered to present its arguments to a neutral arbitrator to end the contract dispute, and hopes the TCRC-CTY will do the same.

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Nov
19

CN EVP Foster to resign, Reilly named interim successor

Rail News Home Canadian National Railway - CN 11/19/2019 Rail News: Canadian National Railway - CN
Michael FosterPhoto – cn.ca

CN announced today that Executive Vice President and Chief Information and Technology Officer Michael Foster will leave the company on Nov. 29.

He plans to move back to the United States to be close to his family and to pursue other career opportunities, CN officials said in a press release.

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Nov
19

Teamsters Canada: Strike begins at CN

Rail News Home Canadian National Railway - CN 11/19/2019 Rail News: Canadian National Railway - CN
About 3,000 conductors, trainmen and yard workers employed by CN walked off the job early this morning, launching the first strike at the Class I in a decade."Conductors, trainpersons and yard workers at CN are now officially on strike!" Teamsters Canada announced today on Twitter, after both organizations failed to resolve contract issues.The Teamsters Canadian Rail Conference (TCRC), which represents the workers and is the largest union at CN, issued a 72-hour strike notice to the Class I on Nov. 16 after negotiations stalled.TCRC spokesman Christopher Monette said yesterday that the strike was issued because workers are "hitting a wall on issues related to health and safety," Reuters reported.Also yesterday, after a plea from shippers, Canada's Liberal government sent two ministers to meet with CN and union officials in an effort to avert the strike, according to Reuters.A CN spokesman did not respond to Progressive Railroading's request for a comment prior to deadline.

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Nov
18

CN conductors, rail yard coordinators could strike as of Nov. 19

Rail News Home Canadian National Railway - CN 11/18/2019 Rail News: Canadian National Railway - CN
The Teamsters Canadian Rail Conference, which represents 3,200 CN employees who serve as train conductors and rail yard coordinators in Canada, notified CN that it intends to strike as of Nov. 19.The union issued a formal strike notice on Nov. 16. CN continues to negotiate "in good faith" to reach an agreement before the strike deadline, said Rob Reilly, CN executive vice president and chief operating officer, in a press release.CN offered binding arbitration to the union, which declined the offer, he said."If a settlement cannot be reached this weekend, we will once again encourage the union leadership to accept binding arbitration as an alternative to disrupting the Canadian economy," Reilly said. "We remain committed to constructive talks to reach an agreement without a work stoppage.”Meanwhile, CN is laying off 1,600 employees as freight volume declines amid trade tensions and a weakening North American economy, The Globe and Mail reported last week.The layoffs will affect managers, office employees and unionized rail workers across CN's U.S. and Canadian network, according to the report."The company is adjusting sources to demand," a CN spokesperson told the newspaper, without being specific about the number of layoffs.
 

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Nov
15

Rail technology: CN ups the automation ante

CN deployed its first new-generation ATIP car in the third quarter on lines south of Chicago.Photo – CN

By This email address is being protected from spambots. You need JavaScript enabled to view it., Managing Editor

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Nov
12

CN's James Street swing bridge reopens after long legal battle

Rail News Home Canadian National Railway - CN 11/12/2019 Rail News: Canadian National Railway - CN
The CN-owned James Street swing bridge in Thunder Bay, Ontario, reopened Nov. 9 to motor vehicle and pedestrian traffic after being closed for more than six years following a fire.The bridge connects Thunder Bay and Fort William First Nation across the Kaministiquia River. It closed after a fire broke out on the northern approach spans on Oct. 29, 2013. Train traffic reopened later that week, but the bridge remained closed to motorists and pedestrians since that time.“CN is pleased that the bridge is reopening and that this important road link in Thunder Bay is once again accessible to the public,” said Olivier Chouc, CN's vice president of law, in a press release.The bridge's driving lane remains unchanged. The speed limit across the bridge will be maintained at about 12 mph, with a load carrying restriction of 33,000 pounds.A lengthy legal battle over the bridge's repair and maintenance issues occurred following the fire. The city of Thunder Bay and Fort William First Nation argued that a 1906 agreement over the bridge's construction required the railroad to maintain it in perpetuity. CN countered that it had fulfilled its obligations and the bridge no longer met modern standards and would require more substantial work than just maintenance, according to a CBC news report.The case ended up in the Supreme Court of Canada, which rejected CN's appeal from a lower court. In the end, the courts required CN to uphold its obligation to repair and reopen the bridge to all vehicles under the 1906 agreement, Thunder Bay city officials said in a press release.The bridge repairs required widening of the city's roadway approaches. That work was completed within CN's construction schedule timeline so that the bridge could now reopen to traffic, city officials said.“We are pleased to see this important connection between Thunder Bay and Fort William First Nation finally reopened,” said Thunder Bay Mayor Bill Mauro. “We recognize the challenges and frustrations citizens from both communities have faced without this access point. CN, as directed by the highest court in Ontario, has fulfilled their obligation to repair the bridge and we can now move forward as more connected communities."

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Nov
06

CN logged record grain shipments in October

Rail News Home Canadian National Railway - CN 11/6/2019 Rail News: Canadian National Railway - CN
CN's western Canadian grain movements broke another record in October, with shipments of 2.8 million metric tons (MMT) of grain and processed grain products, the Class I announced yesterday.The company's previous record was set in April, CN officials said in a press release.This fall has been plagued with cold and wet weather, which has negatively affected the pace of grain deliveries, "leaving rail capacity significantly under-utilized," they said. But despite harvest delays and international trade restrictions, CN has moved 6.7 MMT so far this year.“We are all part of the same supply chain, and as a railway CN fully understands the impacts that weather can have on the end-to-end supply chain,” said Allen Foster, vice president of bulk at CN. “Investment at every step of the supply chain — from producers and grain companies to CN’s investment in new hopper cars, increased network capacity, and a more modern locomotive fleet — all played a role in delivering a record month.”

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Nov
05

CN serves new Saskatchewan intermodal terminal

Rail News Home Canadian National Railway - CN 11/5/2019 Rail News: Canadian National Railway - CN
Canada's first privately operated, state-of-the-art intermodal terminal has opened in the Chuka Creek Business Park in Regina, Saskatchewan, CN announced on its website.CN serves the terminal, which is located on a 32-acre site and is owned and operated by MobilGrain, Saskatchewan's largest short line.In addition to CN service, the terminal provides direct rail/truck transfer, two-rail mounted cantilever gantry cranes, storage capacity of 2,000 20-foot-equivalent units, space to handle 120 chassis, two separate in/out lanes for fluidity, GPS positions for containers and an automated gate system.

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Oct
30

Teamsters members consider November strike against CN

Rail News Home Canadian National Railway - CN 10/30/2019 Rail News: Canadian National Railway - CN
Teamsters Canada Rail Conference (TCRC) members at CN could go on strike by Nov. 19, the labor union announced earlier this week.Last month, about 3,000 CN conductors and train and yard personnel voted 99.2 percent in favor of a strike. The union will provide CN at least 72 hours notice before taking any strike action, TCRC officials said in a press release.A legally mandated conciliation period ended Oct. 25. The union and CN have been in negotiations for six months and have been working with federal mediators for the past four months.The previous collective agreement between the parties expired July 23.The next round of talks with CN and federal mediators is set for Nov. 12, TCRC officials said.

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