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Yesterday, CN and Canadian Pacific announced they signed service improvement agreements with Viterra Inc. to strengthen the global food manufacturer's rail-based supply chain with each railroad.

CN and Viterra agreed to work jointly to review supply chain key performance indicators, cooperate on planning and forecasting, and address supply chain issues in a timely manner.

The pact “will lead to greater supply chain efficiency, from the Canadian prairie elevators to the export vessels,” and build on the success of CN's scheduled grain operation that has “already delivered fundamental gains in grain industry supply chain performance,” said CN President and Chief Executive Officer Claude Mongeau in a prepared statement. Each week, CN spots hopper cars at specific country elevators at scheduled times on scheduled days, he said.

Meanwhile, CP and Viterra agreed to work together on supply chain management, such as sharing performance benchmarks and evaluating opportunities as they arise. Their pact outlines the responsibilities of both parties regarding the movement of Viterra grain from origin to destination as well as dispute resolution provisions. Viterra will benefit from an efficient network of train loading facilities across the Canadian Prairies and port terminals in Vancouver, British Columbia, Thunder Bay, Ontario, and Montreal, CP officials said in a prepared statement.

"Through our scheduled grain service, enhanced systems for car request management, new productivity tools, and customer service agreements, CP is further redefining its models for service reliability and operational efficiency," said Executive Vice President and Chief Marketing Officer Jane O'Hagan. “The results of this work are leading to increased carrying capacity for the railway to the mutual benefit of customers such as Viterra and the entire grain handling system.”

Viterra works closely with growers to market and handle their grain at its facilities, move product by rail and provide timely delivery to domestic and international customers, said Viterra Chief Operating Officer-Grain Fran Malecha. Through the agreements, the company will work more closely with the Class Is to increase supply chain reliability and improve service for grower and export customers, he said.