CANADIAN NATIONAL RAILWAY COMPANY (CN) by 7ZjeDlmV

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									                                                                                            Patrick Leblond


                 CANADIAN NATIONAL RAILWAY COMPANY (CN)*

                                           Company Fact Sheet
                                              May 2005


Head office: 935 de la Gauchetière Street West, Montreal, QC, H3B 2M9, Canada
Website: http://www.cn.ca


CN is North America’s only transcontinental railroad (see map in Appendix). It is also
Canada’s largest railroad. It serves all major Canadian ports on the Atlantic and Pacific
coasts and the Great Lakes. It also serves the ports of New Orleans and Mobile on Gulf of
Mexico. At the end of 2004, CN operated approximately 12,900 route miles in eight
Canadian provinces and 6,400 route miles in sixteen U.S. states. CN’s network serves
every major metropolitan area in Canada as well as major rail hubs in the United States
(Buffalo, Detroit, Duluth/Superior, Minneapolis/St. Paul, Chicago, St. Louis, Jackson,
Memphis, New Orleans, Baton Rouge and Mobile).


Corporate Organization

Headquarters

        Corporate support functions: accounting, financial planning and budgeting,
         human resources, information technology, legal affairs, treasury operations, and
         public affairs

Network Operations

        Planning and control of infrastructure and rolling assets

Sales and Marketing

        Marketing strategy and planning, revenue forecasting, and account management
         for large customers

CN’s Regions (Western Canada, Eastern Canada, United States)

        All activities focused on the ability to meet day-to-day service requirements and
         cost control, and on growing local account



*
 This company fact sheet is developed solely for class discussion. It should not be used in any way or form
as the basis for business or investment decisions. It is not intended to serve as a source of primary data or as
an endorsement of management’s effectiveness.


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Canadian National Railway Company (CN)


Revenues (total for 2004: C$6.55 billion)

Revenues according to destinations (2004):

      Canadian domestic traffic: 23%
      U.S. domestic traffic: 23%
      Transborder traffic: 34%
      Overseas traffic: 20%

Revenues by commodity groups transported over CN’s network (2004):

      Forest products: 22.2%
      Petroleum and chemicals: 17.2%
      Intermodal: 17.1%
      Grain and fertilizers: 16.1%
      Metals and minerals: 10.9%
      Automotive: 7.8%
      Coal: 4.3%
      Other: 4.4%

Number of employees (total as of December 31, 2004: 22,679)

      Canada: 15,784
      United States: 6,895

Regulation

      Canada

             o Canadian Transportation Agency under the Canada Transportation Act:
               rate setting; network rationalization
             o Federal Minister of Transport under the Railway Safety Act: safety; track
               and equipment standards; transportation of hazardous materials

      United States

             o Surface Transportation Board under the Staggers Rail Act of 1980: service
               levels; carrier practices; car compensation; carrier rates (in a limited
               fashion); access to another railroad’s traffic or facilities; construction,
               extension or abandonment of rail lines; railroad consolidation
             o Federal Railroad Administration: railroad safety; equipment standards
             o State regulatory agencies: local safety and operating matters
             o Canada-U.S. Customs and U.S. Homeland Security: border security
               arrangements; rail network security arrangements




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Canadian National Railway Company (CN)


Appendix      CN Rail Network Today




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