CN a key 'backbone' of the economy, Mongeau says

Because of its reach, service, innovation and understanding of customers' markets, CN is a "true backbone" of the economy, President and Chief Executive Officer Claude Mongeau said yesterday during a speech at a Metropolitan Montreal Board of Trade event.

The Class I moves more than $250 billion worth of natural resources, industrial products and consumer goods annually, making the railroad "intimately and extensively involved in just about every sector of the economy," he said, according to a press release issued by CN.

In the West, CN and other railroads are a core part of the grain supply chain, while in the East, CN is extensively involved in moving industrial products, Mongeau said. For example, CN touches a substantial portion of the forest products and metals produced in Quebec, providing timely access to markets in Canada, the United States and Mexico, he said.

CN also is "intimately involved" in the movement of containers destined for consumer markets, Mongeau added.

"This is another area where CN has introduced fundamental innovation, inviting all the key players in the supply chain to participate in framework collaboration agreements that open end-to-end visibility and focus on joint performance metrics that break down silos and smooth the flow of consumer goods," he said.

In addition to its pledge toward innovation, CN is committed to safety, particularly since the railroad moves hazardous goods that are critical to the economy and represent about 10 percent of annual carloads, Mongeau said.

"We take our role very seriously when we are entrusted to move such dangerous goods," he said. "Our safety record is solid and it has been improving continuously for several years."