Canadian National Railway Company · TSX:CNR
Canadian National Railway — CN Short Line Conference 2005
12 slides from Canadian National Railway's conference presentation, Jun 2, 2005
Slide 1: Building on Achievement
Building on Achievement Peter Marshall Senior Vice-President, Western Canada Region CN Short Line Conference June 2, 2005
Slide 2: 2004 Financial Results
2004 Financial Results Short Line Conference (Cdn. $Millions except EPS data) 2004 2003 Percent change Favorable/(Unfavorable) Revenues 6,548 5,884 11 Operating expenses 4,380 4,107 (7) Operating income 2,168 1,777 22 Net income 1,258 1,014 24 Operating ratio 66.9% 69.8% 2.9 pts. EPS $4.34 $3.49 24
Slide 3: Western Canada -- 2004 Achievements
Western Canada -- 2004 Achievements Short Line Conference Service - trip plan performance - excellent integration of BC Rail - dynamic service planning to meet 8% volume growth Cost Control - volume absorbed -- improved unit costs - 8% lower crew cost per GTM - significant cost take-out on BC Rail A
Slide 4: Western Canada -- 2005 Priorities
Western Canada -- 2005 Priorities Short Line Conference Service - further improvement in trip plan in face of 5% growth - going beyond trip plan – to terminal processes/customer interface Cost Control - reduce train accidents - reduce work centres, consolidate work activity - leverage value from ABC
Slide 5: 2005 Focus on Key Principles
2005 Focus on Key Principles Short Line Conference Service • Next breakthrough in service and asset velocity • Provide permanent value added solutions to customers Cost Control • Absorb impact of growth • Process, safety and efficiency improvements • Leverage industry collaboration – routing, co-pro
Slide 6: Focus on Terminal Effectiveness
Focus on Terminal Effectiveness Short Line Conference • Leveraging culture change to drive terminal throughput - improve processes … alignment of the many steps - bring all functions together to find solutions and deliver KEY TERMINAL Improve Every Process Arrival Departure •Car inspection •Hump rou
Slide 7: Routing Protocol - CN-UP Gateway Shift
Routing Protocol - CN-UP Gateway Shift Short Line Conference Fort Fort Saskatchewan, Saskatchewan, AB AB to to Houston, Houston, TX TX Prince Rupert CN CN UP UP Total Total Yard Yard Gateway Gateway Miles Miles Miles Miles Miles Handlings Miles Handlings Edmonton Fort Saskatchewan Current Chicago 1,
Slide 8: Short Line Partnerships
Short Line Partnerships Short Line Conference 25% or $1.5B of CN’s Traffic Originates or Terminates on Short- Line Railroads Ø CN Short Line Council $1.5B Ø Service integration Ø 286,000# upgrades Ø Joint growth plans Total 2004 Revenues: $6.25B Ø Systems interface Short Line Partners are important
Slide 9: Short-line Partnership
Short-line Partnership Short Line Conference Bridging the gap between strategic and transactional Ø Collaborative approaches to customer issues Ø Responding to emerging growth opportunities Ø Formalizing non standard items Enhancing Enhancingthe therelationship relationship
Slide 10: Short-line Partnership
Short-line Partnership Short Line Conference We need your involvement: Ø Equipment inspection Ø Proper loading of cars Ø Identify customer car damage Ø Closed car door policy Ø Car movement with hand brake on Customer Customerinterface interface
Slide 11: Conclusion
Conclusion Short Line Conference Short Lines are an integral part of our business plan Ø Serving customers Ø Growing our business Integration and coordination will be key to future successes Ø Improve current service product Ø Capitalize on new opportunities CN and Short Line strategies Ø Fine tune
Slide 12: Thank you and be Safe!
Short Line Conference Peter Marshall Senior Vice-President, Western Canada Region Thank you and be Safe!
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