Interchange - Winter 2012 - (Page 10)
A great deal more change coming
Interview with CP’s Hunter Harrison
customers to move CP from laggard to leader in four years. The changes announced include: • work force adjustment of 4,500 and future sizing to match emerging volumes; • closing of hump yards at Montreal, Toronto, Winnipeg, Alyth (Calgary), and Bensenville (Chicago) to be converted to ﬂat switching yards; • reorienting the internal culture and cut out bureaucracy by centralized planning and decentralized execution; • building 12-15,000 ft. sidings to accommodate longer trains. Mr. Harrison graciously accepted Interchange’s invitation to share his plans to turn CP around and make it more proﬁtable, and bring the operating ratio down from the worst in the industry to one in the mid 60 percent range.
Interchange We understand that you’ve been pretty busy talking to CP’s rank and file since your arrival. What have you learned?
Hunter I have been through all of our major terminal complexes in some level of detail and listened to the local personnel explain to me the various operations and processes. I realize they’re anxious. We’ve already implemented a great deal of change here in the ﬁrst six months. There’ll be much more coming. However, it’s my sense that people are ready to embrace that change. CP’s a great franchise with a lot of opportunities. I know people at CP are ready to move from the bottom to the top.
Appointed on June 29, Hunter E. Harrison wasted no time in months of strategy sessions. On July 4, his ﬁrst day in his new Calgary ofﬁce, he arrived at CP headquarters and held a ninehour marathon review meeting the result of which has set the course for the swift changes he intended to implement in short order. In the room were executives from marketing and sales, operations and core HQ functions who heard ﬁrst hand Harrison’s observations and expectations. It was then that he declared that he would move immediately to an operations focused railway with only one goal, that of providing the best possible service to customers. In early December he laid out additional plans to implement disciplined execution of a new operating plan that provides premium service for
Interchange What are the top two or three areas of change you see being required?
Hunter Well, it’s basically two things. We’ve got to get our costs under control. The second thing, where
Interchange | Winter / Hiver 2012
Table of Contents for the Digital Edition of Interchange - Winter 2012
A Great Deal More Change Coming
New Lab will Tackle Canadian Railway Geographical Challenges
CN Adds New Terminal and Launches New Maintenance and Training Facilities
A Short Line is More than the Sum of its Tracks
VIA Transformation Paying Off
CRS 2012 Highlights Rail’s Position as a Backbone of Canadian Economy
2012 Safety Awards
Index to Advertisers
Interchange - Winter 2012