Canadian National will ‘leverage its unique franchise to drive top-line growth,’ said Paul M. Tellier, President and Chief Executive Officer of CN.
Tellier, speaking to CN’s annual and special meeting of shareholders in Halifax this week, outlined the railway’s revenue growth strategy.
“First, we will earn more revenue by providing premium service. Second, we will win new business by reaching beyond our rail lines. Third, we will develop new services in areas that will become a source of long-term profitable growth.”
Tellier said that the railway plans to capture new business beyond its network via partnerships with short-line and other major railroads, and through CN transload centres – including new ones in Hamilton, Ont., and Memphis — that make it easier for short-haul truckers to deliver freight to and from the CN system.
CN’s third strategy is to develop new sources of long-term profitable growth.
“We are working with some of our customers to understand their supply chains. CN’s logistics management services provide a simple end-to-end process for customers. It makes CN easier to do business with. And that’s going to win new business for CN.”
Referring to Halifax’s role for CN, Tellier said that as North America’s closest port to the shipping lanes of Europe, the railroads, the port, the unions, the ocean shipping companies, and governments at all levels need to make the Port of Halifax the preferred destination for shippers.
Tellier said he was encouraged by the collaboration between Canadian and U.S. officials at the Port of Halifax and other major North American ports on post-September 11 security issues.
“But, our advantages are often lost because shipments are not scheduled and because there are too many delays between the time the ship enters the harbour and the time the train leaves the yard. Premium service must also include security assurances, especially the transborder shipment of containers. As we market Halifax as a major port of entry for containers destined to the United States, we must recognize that Canada’s economic security depends on our ability to secure our borders,” he said.
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