Technology is important, but so are results in safety and profitability. There has been a major change in CP Rail's traffic base as a result of changes in the economy. Two years ago, CP Rail was primarily a bulk resource commodity carrier. Today it has moved to a more balanced commodity mix that can compete with trucking. In 1999, CP Rail earned more revenue from hauling intermodal containers than grain.
Modal freight requires a different service approach.
Today, goods shipped by rail are service-sensitive, feed production lines and go on store shelves. We must follow the e-business route into the global logistics supply chain. CP Rail will have to integrate its activities into this chain. Railway taxes are punitive compared to those applied to railways in the United States and truckers, and capital cost allowances are out of line with those in the U.S. Changes in grain legislation have caused the rail industry to question whether it should continue to invest in grain handling capabilities. The rail industry in Canada continues to be treated as a tool of social policy, rather than an engine of economic progress that must operate on commercial principles.