CN boss putting tech on fast track

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 multifaceted 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 various technologies the railway company is planning on implementing over the next few years to improve efficiencies, capacity, and safety. It is working with InnoTech Alberta to develop new ways to transport bitumen from Alberta’s oilsands and has filed a patent application for CanaPux, which turns bitumen into a semi-solid, nonhazardous puck-like 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 technology designed to automatically stop trains before accidents caused by human error occur. Another innovation involves managing fatigue for its unionized employees, which make up about 80 per cent of the workforce. It recently launched a pilot project involving a fitness tracking device called Readiband, which monitors and records employee 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.” Pressures caused by the introduction of new technology will be alleviated through displacement and retraining, as well as attrition.