The railway regulatory environments in the United States and Canada will continue to be important subjects in 2015 in both countries. CN believes commercial principles and a stable regulatory environment are essential for an effective, safe and well-functioning rail transportation marketplace throughout North America. Innovation can only thrive in an environment that allows railways to work creatively with their customers and to plan, with reasonable confidence, on revenue sufficient to make the sizable investments necessary in networks and infrastructure, which are necessary for growth.
Gradual deregulation of the rail industry — first in the United States in 1980 and subsequently in Canada in 1987 and 1996 — was the turning point that allowed railways to embark on a strong revival. The changes ushered in by regulatory reform enabled the industry to improve customer service, step up investments and introduce innovative customer service strategies.
We believe the success of North American and international supply chains will be based on innovation by, and collaboration among, all logistics chain participants. The objective must be to help rail customers compete more effectively in their end markets and win greater market share. In turn, customers will reward the industry with increased discretionary business, one carload or container load at a time. That’s a virtuous cycle, and we firmly believe progress on this front can be best achieved through strong commercial relationships between carriers and customersand economic regulatory structures that are anchored on commercial solutions and encourage innovation.
Simply put, railways are crucial to the prosperity of the U.S. and Canadian economies and their competitiveness in global markets. Increased regulation would have the unintended consequences of increasing costs, stifling innovation and potentially discouraging investments.
Claude Mongeau, President and CEO, CN