Supply Chain World - Volume 7, Issue 3 - 46

solutions cn

CN has 20,000 miles of track
throughout Canada and the United
States. It also has ordered 260 new
high-horsepower locomotives.

Chicago rather than through it. "More than 25 percent of
U.S. rail traffic touches Chicago on its route," Harridine
says. "How quickly it goes through or around Chicago is
very important."
Finally, CN is diversified in the various markets it
serves. "Others might depend on particular categories
and if, for example, oil or grain has a bad year, their revenues might be adversely effected," Harridine says. CN's
freight load, on the other hand, is quite diverse.
All of those factors contribute to CN's consistent topline growth.

Evolving Industry
CREDIT: Tim Stevens

CN has seen its container business grow to account for
a little more than 25 percent of total revenue, Harridine
says. "It is partially the result of international trade, particularly with our strength in the west coast ports," he says.
"In recent times, growth has slowed down a little bit."
The use of new technology is a continuing trend. One
important example is positive train control (PTC), which
will be required by the U.S. government. PTC essentially
connects the locomotive, track, signals and back office so
if there is a safety situation, the train is stopped automatically rather than being reliant on the driver. "It starts in
the next year to 18 months and is a massive investment
for all the rail companies," Harridine says.

Looking to the Future
Another new technology CN is involved with is robotic
process automation, which it is piloting to automate
labor-intensive processes such as invoicing, purchase
orders and sales documentation. "We are progressively
rolling that out," Harridine says.
The company seeks to work even more closely with key
suppliers by sharing more information about their strategies and perhaps making longer-term commitments.
In exchange, CN is asking for those suppliers to be more
flexible and to engage in continuous improvement. "The
ability to respond quickly is a constant focus for us,"
Harridine says.
Overall, CN aims to continue its growth into its second
century. "Our strategy, if you like, is more of the same,"
Harridine says. "Our revenues have grown 6 percent a
year over the last six years and our operating income has
grown 8 percent a year over the last six years. We want to
keep that growth and revenue and returns for our shareholders going forward."
46

Supply Chain World VOLUME 7, ISSUE 3



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Supply Chain World - Volume 7, Issue 3

Table of Contents for the Digital Edition of Supply Chain World - Volume 7, Issue 3

Contents
Supply Chain World - Volume 7, Issue 3 - Cover1
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Supply Chain World - Volume 7, Issue 3 - Cover4
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