MONTREAL,
June 21, 2013 /CNW Telbec/ -
Claude Mongeau, president and chief
executive officer of CN (TSX: CNR) (NYSE: CNI), reiterated his
disappointment with Canadian government rail service legislation
that completed passage through Parliament following Senate approval
today.
"It is unfortunate that the government has passed this
legislation because it is not consistent with a sound public policy
agenda that encourages increased productivity and innovation in
Canada," Mongeau said.
"Canada's railways are
recognized globally for their efficiency and service. There is
always room for continuous improvement, but we operate in a
well-functioning market where there are no systemic service issues.
This enviable situation is the result of 25 years of successful
public policy that progressively deregulated railways and
encouraged greater reliance on normal commercial market forces.
"The federal government's Rail Freight Service Review, launched
in 2008, encouraged railways to embrace greater supply chain
collaboration and to strengthen service levels. It was certainly an
important catalyst in CN's decision to launch a series of
collaboration agreements with customers and partners in all sectors
of the business.
"Since 2010, we have introduced an innovative scheduled grain
service in Western Canada, entered
into supply chain collaboration agreements with all of Canada's major ports and intermodal terminal
operators, and adopted a new supply chain focus for the movement of
many of our other key commodities. All of these innovations were
commercially negotiated. They are encouraging stakeholders in the
supply chain to achieve improved service levels and greater
productivity. They are helping CN's customers compete more
effectively in global markets and contributing to the health of the
Canadian economy.
"We believe the government should have recognized these
significant successes and resolved to promote further progress
within a commercial framework. Instead, the government adopted new
rail regulation - regulation that could actually chill supply chain
innovation that benefits both the rail industry and its
customers."
CN is a true backbone of the economy, transporting approximately
C$250 billion worth of goods annually
for a wide range of business sectors ranging from resource products
to manufactured products to consumer goods, across a rail network
spanning Canada and mid-America,
from the Atlantic and Pacific oceans to the Gulf of Mexico. CN - Canadian National Railway
Company, along with its operating railway subsidiaries -- serves
the ports of Vancouver,
Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala.,
and the metropolitan areas of Toronto, 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.
SOURCE CN