Canadian Railroads > Canadian National Railway Struggles to Make On-Time Deliveries

Previous cost-cutting has left railroad short of capacity to serve customers shipping grain, oil and more

TORONTO—Service problems at Canadian National Railway Co., caught off guard by an oil-sector rebound, are causing severe delays in deliveries of grain, fracking sand, crude and other goods from Wisconsin to the Canadian west coast.

Producers say they are falling weeks, and in some cases months, behind deliveries to customers because of erratic and reduced service at CN, Canada’s largest railway.

Oil-field services companyHalliburton Co. warned last month that it would take a hit of 10 cents a share on first-quarter earnings because of CN delays in deliveries of sand to hydraulic-fracturing shale-oil sites.

https://www.wsj.com/articles/canadian-national-railway-struggles-to-make-on-time-deliveries-1521106201

The EHH legacy lives on....

ldstephey Wrote:
-------------------------------------------------------

>
> Oil-field services companyHalliburton Co. warned
> last month that it would take a hit of 10 cents a
> share on first-quarter earnings because of CN
> delays in deliveries of sand to
> hydraulic-fracturing shale-oil sites.

Good ... I hope those delays INCREASE!

Will MacKenzie
Dundas, ON

Well, it used to be "CN, delivering yesterday's freight tomorrow" guess it will now be "CN delivering yesterday's freight, to be announced". Yes the EHH legacy fallout is still falling. Doug

The oil boom in Canada (and the US) has created a lot of opportunity for folks who work hard to make a lot of money. Like all booms, it will end, sometime.

Fortunately, in the mean time there are miles of stored, nearly new tank cars ready to heed the call and earn some money for their owners and investors.

Maybe they ought to sue hunters estate.

Posted from iPhone

Bill Gates and his financial interests own, I believe, 20% or more of the CN. Why does he permit such
apparently poor service? He sure is a talented guy.

renf Wrote:
-------------------------------------------------------
> Bill Gates and his financial interests own, I
> believe, 20% or more of the CN. Why does he
> permit such
> apparently poor service? He sure is a talented
> guy.

Cascade owns about 13% at last report. Still, that is about 6x what Mantle Ridge owned of CSX.

For political reasons, Cascade would not want to be perceived as exercising direct control over an important Canadian firm

http://quote.morningstar.ca/Quicktakes/owners/MajorShareholders.aspx?t=CNR&region=CAN&culture=en-CA



Edited 1 time(s). Last edit at 03/15/18 18:18 by Lackawanna484.

Yes, the service sucks but look at their wonderful operating ratio!

Posted from Android

Not to mention the now almost always 12+ hour delays in delivering actual living passengers.