Freight Railways — Better Rates and Performance

Economic regulations have a direct effect on the operating environment of railways. This briefing makes the link by comparing rates and productivity indicators of Canadian National and Canadian Pacific Railway with those of U.S. Class 1 railways.

Document Highlights

CN and CPR undertook the difficult task of reducing their workforce and rail line, and relatively straightforward productivity improvements were made through a massive reduction in operating costs. Any further reduction in operating costs will be on a much smaller and more difficult scale.

Future productivity improvements will come from the ability of the railways to increase traffic density and improve service quality.