Railroad News

CN today announced Rob Reilly will become executive vice president and chief operating officer and Michael Foster will be promoted to EVP and chief information and technology officer as of July 1.

Reilly has 30 years of experience in the rail industry, starting in 1989 when he joined the Atchison, Topeka and Santa Fe Co., now known as BNSF Railway Co. His industry experience includes a succession of increasingly senior positions in markets across the United States, most notably in Chicago and on the West Coast.

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

Happiest of birthdays to CN, which will turn 100 next month, as managing editor Jeff Stagl reports in this month’s cover story. While the Class I’s leaders are reflecting on a century’s worth of progress, they’re also focused on the road ahead, as my colleague reports. They say they’re committed to delivering on the better-service promise and driving top-line growth.

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

CN announced last week that union members have ratified three of four tentative agreements reached between CN and Unifor Council 4000 negotiators in March.

The three ratified agreements, reached prior to their expiration, cover 2,000 CN railroaders in Canada, including all clerks and intermodal workers, excavator-operators, as well as conductors and locomotive engineers working on the SAR internal short line in northern Alberta, Canada, according to a CN press release.

CN is expanding its operations in western Canada with two additional major export supply chain projects, the Class I announced yesterday.

Both projects are focused on maximizing the use of rail into the Port of Prince Rupert in British Columbia. The first train of thermal coal from Coalspur Mines Ltd.'s Vista Mine in Hinton, Alberta, has shipped to Ridley Terminals. CN is also delivering the first unit train of propane from Alberta for export via the new AltaGas Ridley Island Propane Export Terminal, according to a CN press release.

CN yesterday announced Robert Pace was unanimously re-elected by its board as chairman.

He is president and chief executive officer of The Pace Group Ltd., a Halifax-based company that's engaged in radio broadcasting, real estate and environmental services. Pace, who became CN's chair in 2014, also is chairman of the Walter Gordon Foundation, and a board member for the Atlantic Salmon Federation and Asia Pacific Corp.

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

Despite extreme and prolonged cold temperatures that prompted shorter trains in portions of the first quarter, CN registered solid financial results with strong top-line growth in the period, the Class I reported yesterday.

CN is now offering a mobile app for trucking companies that use certain CN intermodal terminals in Canada.

Known as ModalPass, the mobile app is aimed at making navigating CN intermodal terminals faster for trucking partners, according to the Class I’s website.

CN has signed a memorandum of understanding (MOU) with The Lion Electric Co. for the concept, design and manufacturing of electric trucks as part of the Class I's strategy to reduce emissions.

Terms of the MOU were not disclosed.

CN will appeal a Canadian Transportation Agency (CTA) ruling issued yesterday that determined the Class I had breached its freight-rail service obligations last year in Vancouver, British Columbia.

The CTA found that CN violated its service obligations by announcing its intention to impose embargoes on wood pulp shipments in September 2018, several months before rail congestion and other challenges emerged in the Vancouver area. The Class I imposed those embargoes in December 2018, "rather than making every reasonable effort to deal with those challenges before unilaterally restricting the transportation of the shippers' traffic," according to a CTA press release.

CN announced yesterday it has budgeted $505 million for capital projects this year in Illinois, Louisiana, Tennessee and Wisconsin.

In Illinois, CN will spend $190 million to expand and maintain its infrastructure in state. Planned expansion projects will include development of a positive train control (PTC) system and adding capacity to the Joliet Intermodal Terminal.

CN will spend CA$320 million this year on projects to expand and maintain its infrastructure in Ontario, the Class I announced yesterday.

Planned expansion project investments will include a satellite intermodal facility near CN's Brampton intermodal terminal to provide more capacity; intermodal and infrastructure at the Brampton terminal; and facility improvements at the Toronto auto compound.

CN last week announced capital expenditure plans of CA$45 million worth of projects in New Brunswick and CA$5 million in Nova Scotia this year.

In New Brunswick, CN's 2019 capex program includes installation of 8 miles of new rail and 20,000 ties, and rebuilds of road crossing surfaces and maintenance on bridges, culverts, signal systems and other track infrastructure, company officials said in a press release.

CN today announced it closed the acquisition of The TransX Group of Cos., one of Canada's largest and oldest transportation firms.

TransX provides various transportation and logistics services, including intermodal, truckload, less than truckload and specialized services. The company will continue to be based in Winnipeg, Manitoba, and operate independently.

The Transportation Safety Board of Canada (TSB) has found that a broken axle on a freight car led to the January 2018 derailment of a CN train near New Hazelton, British Columbia.

The incident occurred when a CN train moving west at 29 mph experienced a train-initiated emergency brake application near New Hazelton. A subsequent inspection determined that 27 gondola cars loaded with coal derailed, with some of the product spilling into a nearby waterway.