Commercially-aligned regulatory regime “key” to rail’s support of growing economy in Saskatchewan: CN chief

SASKATOON, Sask.–Claude Mongeau, president and chief executive officer of CN said today CN’s capacity to invest in continued improvements in rail transportation to support Saskatchewan’s thriving economy requires a sound, commercially-driven regulatory regime.

“We firmly believe the federal government should pursue sound policies that foster a balanced regulatory regime for railways and encourage commercial innovation, supply chain collaboration and continued investment. In the end, such tried and tested market pillars are critical to a rail industry that builds the resources and infrastructure required to support Saskatchewan’s fast-growing economy,” Mongeau said.

Mongeau, speaking to the Greater Saskatoon Chamber of Commerce, said Saskatchewan’s economy is booming – the province’s real gross domestic product is expected to grow much faster than Canada’s this year, powered by strong grain and fertilizer production, a growing energy franchise and a solid manufacturing base.

CN has responded to this growth – CN traffic originating in Saskatchewan is up 65 per cent since 2009 – by investing ahead of the curve in capacity improvements, including more than C$100-million spent on extended sidings, double-track and yards along its Edmonton-Saskatoon-Winnipeg corridor.

Mongeau said CN’s investments have helped it efficiently haul more freight, including Saskatchewan’s large share of the unprecedented 2013-2014 grain crop in Western Canada.

“CN posted a record performance in the 2013-2014 crop year – our movement of Western Canadian grain was a full 25 per cent greater than past average performance,” he said. “Today, as a result of hard work and normal commercial incentives, the grain supply chain is back in synch and we are ready to handle the new crop efficiently.”