Canadian rail service legislation puts at risk innovation and
supply chain collaboration, says President and CEO Claude Mongeau
MONTREAL,
Dec. 11, 2012 /CNW Telbec/ -
Claude Mongeau, president and chief
executive officer of CN (TSX: CNR) (NYSE: CNI), says that, putting
aside normal operational and commercial issues, there is no
evidence of systemic rail service performance problems in
Canada warranting the federal
government's introduction today of legislation to impose level of
service obligations on railways through increased regulation.
Mongeau said: "The objective fact is that Canada has a world-class rail system, one
known internationally for efficiency and reliability - a key asset
for a trading nation like Canada -
and that reflects a well-functioning market for rail services.
"The government's Rail Freight Service Review (RFSR) process
launched in 2008 was a key factor in spurring further improvement
in rail service. CN addressed every commercial recommendation of
the RFSR panel to improve service, entering framework cooperation
agreements with a wide array of stakeholders and level of service
agreements with many of its customers to increase supply chain
collaboration and deepen customer relationships.
"Jim Dinning, while heading the
RFSR's railway-shipper facilitation process, recognized this fact,
saying in his report that commercial forces were already driving
improved rail service and advising the government that shippers
should take advantage of the improved customer focus of the rail
industry. In recent years, CN has launched a comprehensive series
of commercial initiatives that benefit our supply chain partners
and the Canadian economy. CN is committed to helping its customers
be more competitive in markets at home and abroad through better
service and a relentless focus on continuous improvement.
"This is why I am troubled by the government's decision to
introduce service legislation that is inconsistent with the facts
underscoring improved rail service, as well as the government's
stated agenda of innovation and productivity to foster economic
prosperity for Canadians. I also believe the legislation
sends mixed signals to customers and suppliers around the world
about the government's approach to commercial markets in
Canada.
"CN invites the government to identify specific, systemic
service issues that warrant this legislation. We are ready to
address any legitimate problems brought to our attention, in the
same way we addressed all the commercial recommendations of the
RFSR panel. We will continue to make our case that a commercial
framework for the rail industry is what Canada needs to foster prosperity.
"CN is a true backbone of the Canadian economy. We are central
to sustained economic growth, helping take the nation's goods and
commodities to market efficiently and reliably. Canada should not put the commercial framework
of its rail system at risk through unnecessary and overly
burdensome rail regulation. Such an approach would stifle
innovation, chill the positive service momentum that's taken hold
and result in potentially unintended consequences for the rail
industry and the customers we serve."
Click here to see table identifying key RFSR issues and CN's
comprehensive response
CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and
mid-America, from the Atlantic and Pacific oceans to the
Gulf of Mexico, serving the ports
of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala.,
and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth,
Minn./Superior, Wis.,
Green Bay, Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to all points
in North America. For more
information on CN, visit the company's website at www.cn.ca.
Forward-Looking Statements
Certain information included in this news release constitutes
"forward-looking statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and under Canadian securities laws.
CN cautions that, by their nature, these forward-looking statements
involve risks, uncertainties and assumptions. The Company
cautions that its assumptions may not materialize and that current
economic conditions render such assumptions, although reasonable at
the time they were made, subject to greater uncertainty. Such
forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other
factors which may cause the actual results or performance of the
Company or the rail industry to be materially different from the
outlook or any future results or performance implied by such
statements. Important factors that could affect the above
forward-looking statements include, but are not limited to, the
effects of general economic and business conditions, industry
competition, inflation, currency and interest rate fluctuations,
changes in fuel prices, legislative and/or regulatory developments,
compliance with environmental laws and regulations, actions by
regulators, various events which could disrupt operations,
including natural events such as severe weather, droughts, floods
and earthquakes, labor negotiations and disruptions, environmental
claims, uncertainties of investigations, proceedings or other types
of claims and litigation, risks and liabilities arising from
derailments, and other risks and assumptions detailed from time to
time in reports filed by CN with securities regulators in
Canada and the United States. Reference should be made to
"Management's Discussion and Analysis" in CN's annual and interim
reports, Annual Information Form and Form 40-F filed with Canadian
and U.S. securities regulators, available on CN's website, for a
summary of major risks.
CN assumes no obligation to update or revise
forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable
Canadian securities laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will
make additional updates with respect to that statement, related
matters, or any other forward-looking statement.
SOURCE CN