CN Precision Railroading Model and Customer-Centric Innovations Are Improving Rail Service

MONTREAL — CN said that customer-focused innovation and balanced accountability among transportation partners are the keys to improving the effectiveness of Canada’s logistics supply chain.

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.”