CN president declares supply-chain focus

Claude Mongeau, president and chief executive officer of Canadian National, said the company's drive to become "a true supply chain enabler" will deliver a more efficient transportation system helping its customers compete better in their end markets. "The CN team is taking its Precision Railroading model to the next level, delivering on an agenda of operational and service excellence anchored on supply chain collaboration to improve end-to-end service for our customers," Mongeau told the Southeast Freight Conference. Mongeau said this supply-chain focus is the next chapter in CN's "remarkable transformation journey." The modern CN story began with privatization in 1995, followed by $8 billion worth of acquisitions that gave the railroad a true North American footprint touching three coasts. Next came Precision Railroading, CN's business model that ensures disciplined operational execution and intense asset utilization and now, a new customer-centric focus and commitment to supply chain innovation. Mongeau said Memphis, a major freight distribution hub, is a pivotal location on CN's 20,500 route-mile network that spans 16 U.S. states and eight provinces. The city is the gateway to CN's operations in the Gulf of Mexico region and the largest U.S. location outside Chicago where CN interchanges traffic with four of the major U.S. Class 1 railroads. The importance of Memphis in CN's system is underscored by the company's sizable capital investments in the city. CN has invested $100-million to rebuild and upgrade its main freight-car classification yard in Memphis, now known as Harrison Yard. It is also a partner in the $35-million CN-CSX Transportation Gateway Intermodal Terminal that opened in 2005 at Frank C. Pidgeon Industrial Park in Memphis. Mongeau said, "With a clear strategic agenda driven by our commitment to innovation, productivity and supply chain collaboration, we can create value for our customers, shareholders and the North American economy."