Claude Mongeau, president and chief executive officer of CN, commended the federal government's Rail Freight Service Review (RFSR), saying the process provided the impetus for CN and the rail industry to re-engage with customers to improve service from one end of the supply chain to the other.

Mongeau said: "CN has achieved significant improvements in customer service in the past three years and has initiated - and continues to embrace - supply chain collaboration agreements and service-level agreements with a wide array of stakeholders and customers, both large and small. These agreements already cover a significant proportion of CN's revenue base, in forest products, grain, metals, coal and intermodal traffic. The launch of the Service Review was a large factor in CN stepping up its game."

CN also actively supported the facilitation process directed by Jim Dinning to produce a template for service-level agreements and enhanced commercial dispute resolution mechanisms.

However, shipper representatives, or the associations they represent, chose to advocate a regulatory agenda rather than work within the commercial approached encouraged by Mr. Dinning to reach for the next level in supply chain collaboration and service agreements. They continually demanded new intrusive, regulatory intervention.

Mongeau asked the federal government, now that the facilitation process is complete, to carefully weigh the future regulatory environment for Canada's rail industry.

"Shippers' demands for greater government intervention in rail service are clearly misguided. This regulatory stance represents a missed opportunity to take supply chain collaboration to the next level.

"Make no mistake - the intrusive, regulatory-based approach to service demanded by shippers would be unprecedented in a market-based economy. Such an approach would send mixed signals to customers and suppliers around the world about the government's approach to commercial markets for rail transportation in Canada.

"CN strongly urges the federal government to favor commercial solutions to rail service issues. Canadian railways are widely known internationally for their efficiency and reliability - which is a key asset for a trading nation like Canada. The nation should not put such an asset at risk through additional burdensome and unnecessary rail regulation."