Another top-ranking executive from Canadian National Railway has jumped ship to the company’s chief rival in the North American railway business.
Canadian Pacific Railway announced Feb. 4 that former CN executive Keith Creel will become its president and chief operating officer effective Feb. 5.
Until recently, Creel had served as executive vice-president and chief operating officer with CN.
He joins another former CN executive, Hunter Harrison, who also jumped to CP last year and has since announced plans to cut 4,500 positions from CP’s labour force, reduce the company’s operating ratio and turn CP into North America’s most efficient rail carrier.
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“I have worked with many talented operating people in this industry over the last four decades and Keith is by far one of the best young operating talents that I have ever seen,” said Harrison, who currently serves as CP’s chief executive officer.
“Canadian Pacific recently began its transformational journey to becoming the best railroad in North America and we look forward to benefiting from Keith’s strong leadership and operational expertise as we move forward.”
Upon Creel’s departure from CN, the company issued a statement suggesting that it had settled its differences with Harrison, whose move to CP in 2012 resulted in a legal dispute between the two companies.
The settlement ends the outstanding litigation between CN and CP before the Federal Court in Chicago, Illinois. As part of the settlement, CP has undertaken not to hire certain CN employees until December 31, 2016.
Other terms of the settlement were not made public.
“We wish Keith success in his new role and are pleased to turn the page with respect to the matter of CP’s hiring of … Harrison,” said CN chief executive officer Claude Mongeau.
“The settlement arrived at today will allow CN and CP to focus on their respective agendas and create value for their customers and shareholders.”
Also last week, environmental groups opposed to the Northern Gateway Pipeline project expressed their opposition to shipping crude and bitumen by rail from Alberta’s oilsands to the West Coast.
Environmental groups sent a letter to CN’s Mongeau, suggesting that the environmental risks involved in transporting crude by rail are too high.
“Unfortunately, … there are far greater fatality, injury and environmental risks when transporting crude oil by rail than by pipeline,” the letter said.
Mark Hallman, CN’s director of communications and public affairs, said the North American railway industry has a solid record in transporting hazardous material.
He cited statistics from the Association of American Railroads that suggest 99.9 per cent of hazardous material carloads are moved safely.
“CN’s long-term safety improvement has been driven by continuing increases in investment, track inspections and CN’s industry-leading line-side inspection system for trains,” Hallman said in a Feb. 4 email to the Western Producer.
“In 2012 CN targeted more than $1 billion of its total $1.8 billion capital investment program on track infrastructure across its North American network to maintain safe railway operations and to enhance the productivity and fluidity of the rail network.”
“CN supports the development of Canada’s natural sources and seeks to give industries effective access to markets,” Hallman added.
“CN’s commitment is to provide efficient transportation services for all goods, including crude oil, in the safest and most environmentally responsible manner.”
