Canadian rail service legislation puts at risk innovation and supply chain collaboration, says President and CEO Claude Mongeau
MONTREAL, Dec. 11, 2012 /PRNewswire/ – Claude Mongeau, president and
chief executive officer of CN (TSX: CNR) (NYSE: CNI), says that,
putting aside normal operational and commercial issues, there is no
evidence of systemic rail service performance problems in Canada
warranting the federal government’s introduction today of legislation
to impose level of service obligations on railways through increased
regulation.
Mongeau said: “The objective fact is that Canada has a world-class rail
system, one known internationally for efficiency and reliability – a
key asset for a trading nation like Canada – and that reflects a
well-functioning market for rail services.
“The government’s Rail Freight Service Review (RFSR) process launched in
2008 was a key factor in spurring further improvement in rail service.
CN addressed every commercial recommendation of the RFSR panel to
improve service, entering framework cooperation agreements with a wide
array of stakeholders and level of service agreements with many of its
customers to increase supply chain collaboration and deepen customer
relationships.
“Jim Dinning, while heading the RFSR’s railway-shipper facilitation
process, recognized this fact, saying in his report that commercial
forces were already driving improved rail service and advising the
government that shippers should take advantage of the improved customer
focus of the rail industry. In recent years, CN has launched a
comprehensive series of commercial initiatives that benefit our supply
chain partners and the Canadian economy. CN is committed to helping its
customers be more competitive in markets at home and abroad through
better service and a relentless focus on continuous improvement.
“This is why I am troubled by the government’s decision to introduce
service legislation that is inconsistent with the facts underscoring
improved rail service, as well as the government’s stated agenda of
innovation and productivity to foster economic prosperity for
Canadians. I also believe the legislation sends mixed signals to
customers and suppliers around the world about the government’s
approach to commercial markets in Canada.
“CN invites the government to identify specific, systemic service issues
that warrant this legislation. We are ready to address any legitimate
problems brought to our attention, in the same way we addressed all the
commercial recommendations of the RFSR panel. We will continue to make
our case that a commercial framework for the rail industry is what
Canada needs to foster prosperity.
“CN is a true backbone of the Canadian economy. We are central to
sustained economic growth, helping take the nation’s goods and
commodities to market efficiently and reliably. Canada should not put
the commercial framework of its rail system at risk through unnecessary
and overly burdensome rail regulation. Such an approach would stifle
innovation, chill the positive service momentum that’s taken hold and
result in potentially unintended consequences for the rail industry and
the customers we serve.”
Click here to see table identifying key RFSR issues and CN’s comprehensive
response
CN – Canadian National Railway Company and its operating railway
subsidiaries – spans Canada and mid-America, from the Atlantic and
Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver,
Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala.,
and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit,
Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul,
Memphis, and Jackson, Miss., with connections to all points in North
America. For more information on CN, visit the company’s website at www.cn.ca.
Forward-Looking Statements
Certain information included in this news release constitutes
“forward-looking statements” within the meaning of the United States
Private Securities Litigation Reform Act of 1995 and under Canadian
securities laws. CN cautions that, by their nature, these
forward-looking statements involve risks, uncertainties and
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“Management’s Discussion and Analysis” in CN’s annual and interim
reports, Annual Information Form and Form 40-F filed with Canadian and
U.S. securities regulators, available on CN’s website, for a summary of
major risks.
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event CN does update any forward-looking statement, no inference should
be made that CN will make additional updates with respect to that
statement, related matters, or any other forward-looking statement.
SOURCE CN
