CN, in a submission to the Rail Freight Service Review panel appointed by the Canadian government, said hard facts compiled for the panel establish the quality of CN's rail transportation product, most notably in terms of hub-to-hub transit time performance. At the same time, CN said it is committed to do a better job of partnering with its customers and is taking concrete action to further improve service by:
- Strengthening the "first and last legs" of traffic movements that are critical customer "touch points," with measures such as improving empty car supply and customer ordering flexibility;
- Re-designing its bulk service offering, with precision railroading innovations such as the implementation of a new scheduled grain transportation plan for Western Canada;
- Streamlining demurrage rules to address customer complaints about bunching and car placement outside switching windows
- Engaging its customers with better communication and faster resolution of service issues through a new marketing organization and customer service function.
Claude Mongeau, president and chief executive officer, said: "CN's customer-centric innovations are being driven by normal commercial incentives in a market place where there is substantial and effective competition, both within the rail sector and across transportation modes. "CN understands that, even with good rail service, customer issues may arise from time to time. That's why we are again urging broad adoption of mediation under a Commercial Dispute Resolution model. Clearly, making further improvements to the logistics system does not require that more regulation be added to an already robust Canadian regulatory regime." CN said the fact-based study prepared for the panel by QGI Consulting Ltd. on railway fulfillment of shipper demand and transit times found no systemic market structure issues within the Canadian rail industry.
Moreover, the study found no difference in rail service delivery, whether the customer is large or small, located on a main line, a secondary or short-line, or whether the customer is served exclusively by one carrier or has access to other rail service providers. This is a very important finding.
CN urged the Review panel to recognize another critical conclusion of the QGI report - a conclusion CN shares - that the reliability of supply chains is not only influenced by railways, but also by the performance of shippers and receivers, terminal operators, port authorities, truckers and steamship lines.
Mongeau said: "Railways cannot be arbitrarily held responsible for all failures in the system. Good transportation service depends on all supply chain participants working as much as possible in a synchronized manner. Failures often happen, for instance, because vessels are late or waterfront terminals are clogged. Balanced accountability is best served by allowing normal commercial incentives to inject the discipline required of all participants.
"The de-regulation of the rail industry has been a true success in Canada. It helped to revive the industry, improve service, generate competitive rates for customers, and it encouraged railways to step up investment in their networks. That's a powerful story and why CN is calling on the Review panel to recommend staying the course."
