CN Rail is a major Canadian transportation company that was privatized in 1995. It has over 23,000 employees and operates on over 20,000 miles of track, moving 20% of Canada's export traffic worth over $250 billion annually. CN Rail has a diversified portfolio of goods it transports including intermodal, petroleum and chemicals, grain and fertilizers, forest products, metals and minerals, coal, and automotive. It ensures it has the necessary resources, equipment, and workforce to transport goods efficiently across Canada and globally.
2. Sold by Ottawa in 1995
23,000 engaged employees
20,000 route-miles
5 acquisitions along the way
$60B of shareholder support
Moving 20% of Canada’s
export traffic
Enabling over $250 billion
worth of trade value
Global West
25%
Domestic Canada 19%
Global East 4%
Transborder 32%
Domestic U.S. 17%
Global South 3%
Based on 2014 H1
2
Well Diversified
Portfolio
Intermodal 23%
Petroleum and Chemicals 19%
Grain and
Fertilizers
16%
Canadian Grain 9%
U.S. Grain 5%
Fertilizers 1.5%
Potash 1.7%
Forest Products 13%
Metals and Minerals 12%
Coal 7%
Automotive 5%
Other Revenues 5%
A Positive Canadian Business Story
4. 4
What makes it all move?
Ensuring the right resources, at the right place, at the right time
CrewsCrews LocomotivesLocomotives CarsCars PlantPlant
• Advance hiring
• Onboarding
• Training
• Opportunistic
purchases over the
last several years
• Targeting
incremental
productivity
• Regular fleet stress
testing
• Mix of ownership and
staggered leases
• Particular emphasis
on the Western
Region given
projected growth
5. Alberta & British Columbia Coal Mines
55
7
6
1
S
2
Quintette
Coalspur
1
2
5
3
5
6
4
7
8
S
HD Mining
Roman Mountain
Cardero
Hillsborough
Fortune Minerals
Xstrata Canada
Summit Coal
4
83
6. 2014 2013
Europe 11.3% 8.7%
CANADIAN COAL EXPORTS
2014 2013
Japan 26.2% 26.2%
China 25.1% 31.5%
South
Korea
20.5% 20.7%
India 6.1% 3.5%
2014 2013
South
America
8.3% 5.2%
Source: Statistics Canada
Canadian International Merchandise Trade (Customs Basis)
7. 2014 2013
Europe 11.3% 8.7%
CANADIAN COAL EXPORTS
2014 2013
Japan 26.2% 26.2%
China 25.1% 31.5%
South
Korea
20.5% 20.7%
India 6.1% 3.5%
2014 2013
South
America
8.3% 5.2%
Source: Statistics Canada
Canadian International Merchandise Trade (Customs Basis)
Editor's Notes
Summit Coal – if is sold soon 300k metric tonnes to shipped from Winniandy to RTI in 2015.
Teck Quintette Mine – delayed to restart the mine by mid-2016 this is a 3-4 Mtpa all CN moves to RTI, it was previously forecasted to restart early 2015.
Coalspur – the only thermal coal project for mid-term this mine is estimated to start mid-2016, depending on market conditions. Westmoreland as shown interest in buying them.
HD Mining – New opening mine near Quintette BC. Estimated production of 0.5Mt in 2017