Lesson no. 1: Don’t believe the Press Releases!

If the pronouncements of Canada’s two major railways are any indication, both outfits are nimble, well-equipped and able to deliver the goods. Quickly.

Each press release seems to outdo the one before in describing the powerful new locomotives they’re  buying, the new track they’re laying down, or the upgrades they’re making to bridges, freight yards and signal systems.

So, it comes as a shock to hear that CN Rail and Canadian Pacific were recently clogged with grain shipments — so much so that Canada’s reputation as a reliable exporter is now on the line, while the country’s grain growers may be facing a cash crunch.

a-canadian-national-freight-train-loading-grain-cars-at-the-grain-F96GWA

A CN Rail grain train at Morinville, Alta.

Indeed, Canada’s Ag Transport Coalition says that during the week of Feb. 12, Canadian National and Canadian Pacific  together provided only 38 per cent of the rail cars ordered by grain shippers. More precisely, CP Rail  delivered 66 per cent of its orders; CN Rail,  just 17 per cent.

To clear the backlog, Canadian National is urging some of its workers to postpone retirement, while enticing some of its retired employees to come back to work!

It’s also deploying qualified managers to run extra trains, as well as adding crews in western Canada. Moreover, to boost its hauling capacity, CN Rail has leased 130 diesel locomotives.

Meanwhile, two Canadian cabinet ministers — Marc Garneau (transportation) and Lawrence MacAulay (agriculture) — have called the railways’ performance disappointing.

Canadian National’s sluggishness has already claimed one victim:  its CEO, Luc Jobin. Mr. Jobin abruptly resigned March 5, amid a statement from CN’s board of directors that the railway needed a leader who could “realize CN’s corporate vision,” as well as take the company forward.

 

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