BEISEKER, Alta. (Staff) – For the first time in three years, CN Rail is reporting a profit.
At the end of 1994 the railway earned $250 million. As a crown corporation it will pay a 20 percent dividend to the federal government.
Driving that profit is a new business-like attitude, said CN officials during an information day at Beiseker.
“Like any other business, we expect a return on investment. We’re taking a very strong business approach. Any dollars we spend we expect to get back,” said Greg Keon, grain train manager for CN.
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An upsurge in the western economy contributed to the bottom line as CN moved near record amounts of grain, coal, lumber and chemicals like potash and sulphur, mostly through west coast terminals.
Shipments increased
Halfway through this crop year, grain shipments to the West Coast are up 10 percent over the five-year average at 14.7 million tonnes. Thunder Bay is having its best year since 1987, handling 6.2 million tonnes, a 30 percent increase over the five-year average, said Keon.
It’s estimated 21.5 million tonnes of grain were moved by CN in the 1993-94 crop year compared to 18 million tonnes in 1992-93. About 25 percent was shipped to Thunder Bay, the rest through Vancouver and Prince Rupert. Grain movement to the west is growing because of increased demand from Asia.
Grain shipped through the port of Churchill is limited by the fact that the port only operates from July to October. In 1994, 290,000 tonnes went through Churchill. Movement is based entirely on sales programs out of the port, said Keon.
At the same time CN has invested in infrastructure and maintenance for locomotives, rolling stock, roadways, yards and terminals. While 1994 figures haven’t been tabulated yet, preliminary numbers show $248 million was spent by CN in Western Canada. About $54 million was grain related.
