Canadian rail network invests in 2,200 new freight cars
The Canadian railway network CN is making major investments in its rail freight sector, acquiring more than 2,200 new freight cars and 1,300 new containers in 2012.
It is hoped that the purchase will support traffic growth and improve customer service, extending the range of materials that CN can transport.
Jean-Jacques Russet, executive vice president and chief marketing officer for the company said: “CN is acquiring new freight cars and containers for a range of markets, including forest products, metals, minerals, coal, iron ore, steel, consumer goods, finished vehicles, and grain. These fleet additions will help us grow in line with our customers' demands and ensure CN has the right mix of modern, productive assets.”
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CN has made a number of large investments over the last year, purchasing 1,300 grocery containers, 558 high capacity covered hoppers for grain experts, 300 gondolas for coal and 232 new ore cars.
Ruest said: “CN's rolling stock acquisition strategy is responding to evolving market conditions and is intended to ensure reliable, predictable supply chains for our customers.”
The company’s is also investing in the Prince George area, where it has spent over C$150 million since 2004. A new C$12 million investment will mean that CN’s Locomotive Reliability Center, which repairs and maintains trains, will double it’s floor space. In addition to this, CN has spent C$4 million on two key sidings, which will accommodate 10,000 foot-coals trains serving the mining region.
Keith Creel, CN executive vice-president and chief operating officer, said: “The Prince George LRC is strategically located midway between Edmonton, Alta., and Prince Rupert, B.C., which are roughly 1,000 miles apart.
“The facility serviced locomotives for more than 9,000 CN trains that transited the city last year. We are at maximum capacity at the LRC, with three shifts per day, seven days a week, and we need to expand it to handle existing and forecast growth of intermodal, coal and other traffic in northern B.C.”
UPS Posts Record Second Quarter with Revenues of $23.4bn
Growth across each of its core segments resulted in record results for UPS in the second quarter, with group revenues climbing 14.5% year on year to $23.4bn.
The global logistics outfit achieved consolidated operating profit of $3.3bn, up 47.3% compared to the same period in 2020. It is the second consecutive quarter of record profit, and a significant rise on Q1’s $2.9bn.
UPS Q2 Revenues in Brief
- Consolidated revenues: $23.4bn (+14.5% yoy)
- Domestic: $14.4bn (+10.2%)
- International: $4.82bn (+30%)
- Supply Chain Solutions: $4.2bn (+14.3%)
The US company’s domestic segment performed steadily with 10.2% revenue growth to $14.4bn. But it was its international and supply chain solutions segments where UPS saw the biggest gains. Strong demand in Europe led an increase in international revenues of 30% to $4.82bn. UPS’ supply chain solutions division saw revenue growth of 14.3% to $4.2bn, driven, the company said, “by strong demand in nearly all businesses”.
UPS’ steady growth throughout the pandemic has been led by the overarching vision of its chief executive Carol Tomé to do “better not bigger”, focussing on efficiency and high margin deliveries through its network over pure scale and volume.
“I want to thank all UPSers for executing our strategy and delivering high service levels, which fuelled record financial results in the second quarter,” she said. “Through our better not bigger framework, we are moving our world forward by delivering what matters.”
UPS Completes Sales of UPS Freight
The second quarter also saw UPS complete the divestiture of UPS Freight in a deal worth $800m - with a surprise result for the division, now called TForce Freight, under new owner TFI International.
“The second quarter was historically significant for TFI International, with the closing of our UPS Freight acquisition and record performance across the board,” said Alain Bédard, chairman, President and Chief Executive Officer, TFI International. “Particularly gratifying is the performance of TForce Freight, which has exceeded our operating ratio targets far ahead of schedule, and we have only just begun our work.”
In it first two months of ownership TFI reported that adjusted operating ratio (OR) was 90.1% for TForce Freight, far outperforming its forecasted OR of 96-97%.
“I wish to thank our entire team for their hard work and remarkable efforts, and officially welcome aboard our new TForce Freight colleagues who have seamlessly come under the TFI umbrella and are already making stronger than expected contributions,” Bédard added.