CN and CP announce first quarter 2017 results

While both of Canada’s major railways felt the effects of a weak economy, CN produced another quarter of stellar results, while CP produced more modest results.

During the quarter, CN’s revenues increased by just over 8 per cent to $3.3 billion. However, operating expenses rose by almost 9 per cent. Net income before income taxes rose from $1,099 million during the first quarter of 2016 to $1,183 million during Q1 of 2017. Cash flow from operations increased to $1,265 million during the period, up from $1,065 million during the same period of 2016. “Free” cash flow, the amount remaining from operating cash flow after subtracting net investments made during the quarter and dividends paid to investors, increased to $547 million from $303 million during the first quarter of 2016.

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CN, Duluth Cargo Connect to establish first intermodal container terminal in Twin Ports

CN and Duluth Cargo Connect announced a new alliance establishing the first rail-served intermodal container ramp in the Twin Ports of Duluth, Minn. and Superior, Wisconsin. Duluth Cargo Connect, a working partnership of the Duluth Seaway Port Authority and Lake Superior Warehousing, will operate the rail-served facility at the port’s Clure Public Marine Terminal.

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New China-Europe rail services on track to steal air and sea freight volumes

By Alex Lennane

2017 will be the year that China-Europe rail services shift supply chain patterns. As the first train from China rolled into London on January 17, having left on New Year’s day, the CEO of Kazakhstan’s dry inland port, Khorgos Gateway, told The Loadstar the services would eat into sea and air freight volumes. “We now have two trains per day, with about 80 TEUs and 41 containers per train,” explained Karl Gheysen. “It runs three times a week to Duisburg, but we also have services to the Netherlands, Madrid, Iran and now the UK. “The capacity is 540,000 TEUs a year, but we could make it a million.”

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Truckers bite into the rail operators’ share of North American intermodal traffic

By Alexander Whiteman

Intermodal traffic on North America’s railways lost out to cheaper trucking alternatives last year. More haulage capacity opened up, pushing full-year revenues at intermodal operators down across the board. Of the six major North American railroads, only Norfolk Southern (NS) and Canadian National (CN) reported volume growth. Warren Buffet-owned BNSF does not report its numbers.

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CN and CP announce Q4 and 2016 year-end results

Both of Canada’s major railways announced results for the period ended December 31, and for the second year in a row, the effects of a sputtering economy were well in evidence.

Although fourth quarter revenues were up 1.6 per cent, CN’s revenues for the year declined by 4.5 per cent to $12.03 billion. However, because of tight control over expenses, operating income for both the quarter and the year were up. In fact, operating expenses as a percentage of revenues declined steeply from 58.2 per cent to 55.8 per cent during the year, a new record, as far as we can tell. Net income for the year rose 2.9 per cent to $3.64 billion. Cash flow from operations increased by 1.2 per cent to $5.20 billion. “Free” cash flow, the amount remaining from operating cash flow after subtracting net investments made during the year and dividends paid to investors, declined slightly to $1.43 billion.

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Increasing safety of Canadians by investing in rail improvements

The federal government is increasing its investment, and expanding eligibility criteria to reduce injuries and fatalities, and increase public safety around the railway system. Marc Garneau, Minister of Transport, announced the new Rail Safety Improvement Program with over $55 million in funding. This new program increases overall funding, expands the list of eligible recipients and broadens the scope of projects that could be funded to enhance rail safety.

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