CN’s Mongeau: “A remarkable transformation”

CN President and CEO Claude Mongeau, in a Dec. 14 address before the Board of Trade of Metropolitan Montreal, said CN’s rise to “rail industry leader from industry laggard” is “one of the most profound transformations in Canadian business history, the product of a compelling corporate vision, continual innovation, and strong operational execution.” 

Mongeau said CN has made “huge strides” since its initial public offering of shares in 1995. “Today, CN leads the North American rail industry in profitability and is recognized as a world-class rail operator by virtue of its Precision Railroading business model,” he said. “Once largely a Canada-only enterprise, CN now spans 16 U.S. states and eight provinces following C$8 billion in rail acquisitions in the past 15 years. And CN’s market capitalization—just C$2.2 billion at the time of its privatization—today stands at C$30 billion, with CN having generated a total return to shareholders, including dividends, of 21% annually since its IPO.”

“Building on a solid foundation, we are staying on a journey to reach the next level of operational and service excellence,” Mongeau said. “Top of the list is becoming a true supply chain enabler to help our customers grow and succeed in their end markets.” He said CN “is doing just that,” and cited such recent accomplishments as collaboration and level of service agreements with Canada’s east and west coast ports and terminal operators, end-to-end supply chain agreements with coal customers, and a highly successful program of scheduling empty grain car deliveries at elevators.”

Mongeau said change “remains a constant in CN’s journey going forward,” and that “the positive changes flowing from CN’s transformation underscore the importance of Canada’s Rail Freight Service Review panel making the right policy choices in its pending final recommendations to the federal government. A market-driven environment remains vital to increased supply chain efficiency and innovation, and a central reason why the Panel should stay the course in favor of a commercial framework for the rail industry.

“The policy choice is clear,” Mongeau stressed. “It’s about vision, innovation and execution. It’s about driving improvement and being rewarded for doing so. It’s about the pursuit of innovation and productivity to help foster prosperity across Canada.”