CN CEO puts tech on fast track to stay on track
TRANSPORT
Canadian National Railway Co. is investing in technological innovations to improve safety and operations as it grapples with rapidly disruptive changes in the industry.
CN chief executive Luc Jobin told an investor conference gathered in Montreal on Wednesday that the company must take advantage of technological innovations that will help improve supply management, safety, engineering and increase value propositions over time.
“Make no mistake about it, the world CN operates in is definitely evolving. The challenges facing our company are not unique to us or our industry,” Jobin said in a speech to investors.
“It means some basic applications to reduce manual and clerical work still in our operations today, to more multi-faceted enhancement, such as taking our supply chain performance to the next level with digitalization to increase efficiency, reliability and visibility.”
CN kicked off its two- day investor conference Tuesday with a showcase of technolo- gies the railway company is planning on implementing over the next few years to improve efficiencies, capacity, and safety. The company is currently working with InnoTech Alberta to develop new ways to transport bitumen from the oilsands.
It has filed a patent application for CanaPux, which turns bitumen into a semisolid, non- hazardous pucklike pellet that doesn’t explode, leak, or sink.
CN has also spent $ 500 million of a total $ 1.2- billion commitment to install positive train control ( PTC) technology designed to auto-- matically stop trains before accidents caused by human error occur. PTCs were mandated in the U. S. in 2008, and aim to prevent train- totrain collisions, derailments caused by excessive speed and the passage of trains through track switches left in the wrong position.
Another innovation involves managing fatigue for its unionized employees, which make up about 80 per cent of the workforce. The railway recently launched a pilot project involving a device called Readiband, which monitors and records fatigue and alertness.
Jobin said because the company is taking a gradual approach to the implementation of new technology, changes to the workforce will not be disruptive and “shouldn’t lead to any major discontinuity.”
“There’s a natural attrition process which will help us over time cope with some of the changes as automation and more technology gets deployed,” Jobin said. “There is room for some displacement, there is room through attrition ... and we feel pretty good that we can work with union leadership and our employees to go through that in a very constructive way.”
Walter Spracklin with RBC Dominion Securities said in a note early results of these innovations have been encouraging. “The exhibits and presentations we saw on day 1 of the investor day reaffirm our view that CNR is at the forefront of railroad innovation,” he wrote.
Jobin also dismissed concerns about NAFTA renegotiations.
“While there are clearly rising protectionist tendencies, many trading blocs are so integrated that unwinding is not only impractical, it’s often detrimental to the parties involved,” he said.
“We do not anticipate it will have a significant impact on the flow of goods between Canada and the U.S. that would fundamentally affect our network.”