Canada’s two national railways can thank prairie farmers for boosting their bottom lines last year.
Canadian National Railway and Canadian Pacific Railway released their financial results for 2009 last week, and grain was the number one earner for both.
CN reported net income of $1.85 billion, or $3.92 per share, down two percent from the previous year.
CN’s freight revenue was $6.63 billion, of which grain and fertilizer provided $1.34 billion, or 20.2 percent. CN reports those two commodities together.
That put grain at the top of the list, ahead of intermodal, petroleum and chemicals, forest products, coal and minerals.
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CPR’s net income was $612 million, or $3.67 per share, up one percent from the previous year.
Revenue from grain was $1.13 billion, up 5.5 percent from the previous year, and representing 27 percent of total freight revenue.
That put grain into the top spot, tied with intermodal and well ahead of other commodities.
CN president Claude Mongeau said CN controlled costs during the year, generated strong cash flow, reduced idle time for cars at terminals, improved locomotive fuel efficiency and operations such as train speed.
“CN believes there will be a gradual economic recovery in 2010,” Mongeau said in a news release.
“A number of our markets appear to be improving and we expect to take advantage of a number of opportunities this year.”
CPR president Fred Green des-cribed 2009 as an extraordinary year of economic challenges.
“We met these challenges with focused productivity initiatives that have delivered sustainable improvements.”
He said the company will continue to emphasize increased efficiency and reliable service.
Rail by the numbers
- CN moved 530,000 carloads of grain and fertilizer, down from 579,000 in 2008. That accounted for 13 percent of total carloads.
- Grain revenue per carload for CN was $2,530, up from $2,387. Only forest products earned more, at $2,846 per carload.
- CPR moved 469,500 carloads of grain, up from 460,400 in 2008. That represented 20 percent of total carloads.
- Grain revenue per carload for CPR was $2,407, up from $2,325. That ranked third behind sulfur and fertilizers, and forest products.
