CN critical of Rail Freight Service Review final report

Canadian National has serious concerns about the final report of the Rail Freight Service Review panel that was issued and is disappointed with the Government's response. While CN is pleased that, in releasing the report, the Government recognized the importance of a supply chain approach and noted its preference for commercial solutions, CN is concerned that the Government's decision to consider tabling legislation could stifle supply chain innovation and Canada's competitiveness in the global marketplace. Claude Mongeau, president and chief executive officer, said, "CN disagrees with the focus and tenor of the panel's recommendations. Like the dissenting panel member, we are concerned that the panel's recommendations are drifting backward toward more regulation instead of encouraging the current momentum for positive change." Mongeau noted that the panel failed to act on the hard facts that were before it, which show that rail service in Canada is actually quite good overall. CN says the government failed to recognize the significant positive change that has been taking place over the past two years to address key service issues, including improved customer engagement, initiatives to improve the first-mile/last-mile of rail traffic movements and enhanced supply chain efficiency and transparency. CN says that contrary to its mandate from the government to examine service provided by the "rail-based logistics chain," the panel focused solely on the railways - the only federally regulated segment of the supply chain - and missed the fact that all participants in the supply chain are accountable for transportation system performance, not just railways. Mongeau said, "CN remains fully committed to its strategic agenda of operational and service excellence. Deeper customer engagement is the right way to do business and the best way to help our customers across Canada win in their own end markets. "In the end, supply chain partners need to embrace change to drive better service and efficiency gains. Burdensome regulation targeting railways alone is not the solution. Greater supply chain collaboration and more service innovation are what is needed to foster Canada's prosperity."