Canadian Railroads > CN: What really happened?

Someone help inform a dumb foamer...

For the past few years I have been reading about how the rail industry was retrenching, losing traffic, and becoming less profitable... Following those words every time, though, would be an asterisk and the words "except for CN"... We heard about how CN was growing traffic while cutting the operating ratio at the same time... Last year they started running short on power, leasing units from all over as everyone else was retiring diesels or putting them into storage... Now (apart from the 10 SD70ACe-T4 units CSX has on order), they have the only new power presently on order for a North American freight railroad, in the form of 200 more units we have yet to see from GE (and where are these, BTW?)...

Reading recent headlines, though, it seems CN may be imploding... 24-hour-plus delays to the Canadian and other passenger trains... Customers displeased with slow, erratic, and unreliable service... It lately seems every tired GE unit CSX retires reappears on CN rails with GECX marks... The CEO abruptly leaves the company (or was he removed?)...

So my question again is how did CN buck the downward trend its rivals were experiencing in the past few years, and why exactly has it gone so wrong recently? Thanks in advance...

Posted from Android

CN picked up a great deal of traffic from CPR thanks to Hunter Harrison's policies at the latter. That traffic increase coupled with winter weather caused delays.

The president was removed.

KG

MC6853 Wrote:
-------------------------------------------------------
> Someone help inform a dumb foamer...
>
> For the past few years I have been reading about
> how the rail industry was retrenching, losing
> traffic, and becoming less profitable... Following
> those words every time, though, would be an
> asterisk and the words "except for CN"... We heard
> about how CN was growing traffic while cutting the
> operating ratio at the same time... Last year they
> started running short on power, leasing units from
> all over as everyone else was retiring diesels or
> putting them into storage... Now (apart from the
> 10 SD70ACe-T4 units CSX has on order), they have
> the only new power presently on order for a North
> American freight railroad, in the form of 200 more
> units we have yet to see from GE (and where are
> these, BTW?)...

BNSF also has 10 SD70ACe-T4-P4 on order for 4Q/18.
>
> Reading recent headlines, though, it seems CN may
> be imploding... 24-hour-plus delays to the
> Canadian and other passenger trains... Customers
> displeased with slow, erratic, and unreliable
> service... It lately seems every tired GE unit CSX
> retires reappears on CN rails with GECX marks...
> The CEO abruptly leaves the company (or was he
> removed?)...

CN's CEO was likely allowed to resign in lieu of being fired.
>
> So my question again is how did CN buck the
> downward trend its rivals were experiencing in the
> past few years, and why exactly has it gone so
> wrong recently? Thanks in advance...

Take a look at the carload plus Intermodal units figure from the AAR. Compare what is happening in Canada to what is happening in the US. Note that Canadian figures also include carloads and Intermodal units originating on CN and CP's US subsidiaries(Soo, GTW, IC, WC, D&H, etc.)

https://www.aar.org/Pages/Freight-Rail-Traffic-Data.aspx#monthlyrailtraffic

Make sure you tick the box marked "Canada" as the default is for USA. Notice that the figures for 2017 are higher than 2015 or 2016. And while CN had a big part in the rise, CP is doing well also.

EHH did learn something from his time at CN so that when he moved to CP and started removing shorter sidings, he at least lengthened many of the remaining sidings.

In 2018 CP traffic is up by a greater percentage than at CN, although in absolute numbers CN has gained more carloads.

Don't forget the flood of traffic from Prince Rupert.

Huge increase in Canadian crude shipments and a good wheat harvest will swamp any right sized shop.

Am I right to understand much of the CN strain is in the Prairies and Vancouver / Port Rupert?

Posted from Android

Lackawanna484 Wrote:
-------------------------------------------------------
> Huge increase in Canadian crude shipments and a
> good wheat harvest will swamp any right sized
> shop.
>
> Am I right to understand much of the CN strain is
> in the Prairies and Vancouver / Port Rupert?
>
> Posted from Android


Paul, probably the worst thing Harrison did was remove the 2nd main track between Henry House and Devona (between Jasper and Hinton, AB). That area is within a national park. Who knows what hoops CN needs to jump through to put it back in...they really need that track now, especially with the unit propane trains to Prince Rupert starting in about a year.


Allen



Edited 2 time(s). Last edit at 03/20/18 21:43 by bradleymckay.

EHH slashed, burned, fired, ignored maintenance, peeved off customers and now CN is paying the PIPER!
Short sidings, no spare crews, too few locos, no in house shops it goes on and on.
Suddenly CN is the flavor of the month and they can't handle it !!!!

Mike Bannon
St Catharines, ON