We remain engaged in ongoing discussions about railway regulatory environments in Canada and the United States. Market-driven forces have enabled the US and Canada to create a world-class rail network in which shippers benefit from rates that are among the lowest in the world.
We believe regulation needs to take a long-term view that encourages investment to build capacity to support economic growth. Lawmakers and regulators in both countries need to consider regulation that supports investment to maintain the sustainability of the supply chain in the long run.
Ultimately, we live in an interconnected world, and need to remain open to trade. For decades, Canada has relied on trade with the US, and Canada is the US’s largest customer. In many ways, our economies are intertwined, and this continental approach has served both nations well and will continue to do so. Our transportation network, including railways, has helped us achieve that success.
The economic environment remains sluggish and uncertain, with particular weakness in commodity markets, including crude by rail, frack sand, and coal. We have seen intermodal volumes across North America weaken, but feel more optimistic about volume potential in 2017 with expansion plans at the ports of Prince Rupert and Vancouver in British Columbia.
CN invested billions to add resilience to the railway and build capacity necessary to accommodate future volume growth. We’ve taken advantage of better productivity, allowing us to do more work faster. We’re maintaining our strong focus on productivity and safety while continuing to deliver superior service.