CN SAFETY MANAGEMENT SYSTEM (SMS) Annex 2. SafetyFirst...

Transcription

1 CN SAFETY MANAGEMENT SYSTEM (SMS) Annex 2 SafetyFirst...

2 Leadership in Safety 2007 Delivering safely

3 2006 Performance Highlights 30% reduction in mainline TSB accidents accident severity improved significantly with a system cost reduction of C$51 million 15% reduction in FRA mainline accidents 22% increase in non-mainline FRA accidents, driven by yard switching rule violations 13% improvement in FRA injury ratio 2006 results 13 per cent improvement in FRA injury ratio due to 2007 Safety Plan CN strives to improve its safety performance through focused initiatives that address our top causes of injuries and accidents. The results clearly tell us where we re succeeding and where we need to do better in our pursuit of safety excellence. CN develops FRA personal injury frequency injuries / 200,000 person hours initiatives such as: ABC process to coach and develop employees Involvement of health and safety committees in addressing top injury causes Regional and local safety action plans Key 2007 initiatives to reach targets Conduct systematic re-enactments and root cause analyses Leverage ABC process to coach and develop employees Focus on compliance with safety rules and safe work procedures through audits, efficiency tests and safety walkabouts Implement best practices from safety road shows detailed safety action plans that address the causes of accidents as defined by the FRA and the TSB. FRA train accident frequency accidents per million train miles results 22 per cent increase in FRA accident ratio due to: Increase in yard accidents caused mainly by rule violations Key 2007 initiatives to reach targets Regional action plans with increased focus on rule violations Implementation of best practices identified in safety road shows Increase in capital spending to C$1.6 billion

4 We dedicated ourselves in 2006 to significant process improvements and investments in equipment and technology to help further ensure the safe operation of the railroad. Our intense focus on main track improvements, following a number of derailments in 2005, delivered encouraging results in We experienced a 30 per cent reduction in mainline TSB accidents. Accident severity also improved significantly, thereby reducing system costs by C$51 million. Our FRA ratio for non-mainline accidents, however, increased by 22 per cent in 2006, driven mostly by yard rule violations. Regional action plans have already begun to turn this decline around through greater efficiency testing, coaching and rules compliance. In 2006, every operating region and function worked hard to reduce personal injuries and the efforts paid off. The FRA injury ratio improved by 13 per cent, demonstrating we re moving in the right direction in keeping our people safe. The good news was marred, however, by the tragic loss of three colleagues to work-related accidents during the year. Each fatality was a painful reminder of how unforgiving our environment can be, and of how we should never lose the focus on safety. We ll take safety to the next level in 2007 by increasing our focus in the areas that brought results last year, such as capital investments, rail testing, inspections and detections. We will also implement the top 10 initiatives from our safety road shows that have the greatest potential to improve safety. To reduce non-main track accidents, we will intensify our focus on rule violations in the yards and target the at-risk behaviours that are the root cause of these accidents. By working to reduce all accidents, we keep ourselves safe, reduce costs, and maintain CN s standing as one of the industry s safest carriers. TSB accident frequency accidents per million train miles Canada total results 16 per cent improvement in TSB accident ratio 30 per cent reduction in TSB main-track accidents Improvement in accident severity; C$51 million savings Key 2007 initiatives to reach targets Continued focus on engineering and mechanical causes of main-track accidents Regional action plans with heightened focus on rule violations in yards Enforcement of CN s Drug and Alcohol Policy

5 CN s Integrated Safety Plan CN s Integrated Safety Plan is the framework for integrating safety into our day-to-day operations. It is a proactive, comprehensive program designed to minimize risk and drive continuous improvement in the reduction of injuries and accidents. To incorporate safety into daily operations, the plan puts into action coordinated initiatives focused on three key areas: People, Process and Technology. People CN invests significantly to strengthen our safety culture, and in 2006 continued to implement a number of initiatives to make safety everyone s responsibility. The ABC initiative Antecedents, Behaviour and Consequences (ABC) helps to create a culture of excellence at CN by emphasizing personal responsibility for safety. Supervisors provide employees with clear objectives and expectations for safety as well as consistent feedback on performance. The program is now systemwide and has been successful in achieving higher levels of safety at CN. ABC will continue to be an extremely important tool in addressing the root causes of accidents in 2007, including changing unsafe behaviours. Drug and Alcohol Policy Alcohol and illegal drug use are incompatible with the highly sensitive nature of railroad operations. One of the key strategies to ensure we are the safest railroad in North America is our policy of zero tolerance for impairment in the workplace. In the U.S., CN complies with firmly established rules and regulations governing drug and alcohol testing after accidents or incidents. In Canada, CN enforces the company s Drug and Alcohol Policy to minimize risk in all operations. In 2006, under the Policy, CN began to increase its focus on drug and alcohol testing after significant accidents or incidents where a rule violation and/or lapse in employee judgment were a contributing cause. CN also launched an information campaign to raise employee awareness of the consequences of alcohol and drug use and of CN s related policies. The campaign will be ongoing in Top 10 initiatives for improving safety Efficiency testing, inspections and train riding Peer processes New hire mentoring Safety walkabouts Investigations of rule violations and near misses Health and safety committees Cross-functional knowledge Enhanced job briefings Engineering/track integrity Strengthening safety in the EPS process for unionized employees For more information on what is being done under each of these initiatives go to: and click on Safety.

6 Safety Road Shows In late 2006, senior CN officers, with representatives from the Federal Railroad Administration (FRA), Transport Canada and the Transportation Safety Board (TSB) in attendance, travelled across CN s system to provide an in-depth exploration of safety to hundreds of managers. Participants heard presentations on regional safety issues, safety trends and statistics, and key safety initiatives. During break-out sessions, participants identified a great number of ideas that had significant potential to improve safety. The top 10 initiatives having the most potential to improve safety were selected and are being implemented as best practices across all regions. Health and Safety Committees Over 100 joint union-management committees are helping to identify the top three causes of injuries in their areas and implement solutions locally. Initiatives have included providing employees with accident and injury reports, encouraging greater peer involvement in safety, and educating employees on specific safe work procedures through posters and information blitzes. Committees will continue to be proactive in 2007 to drive safety improvements at CN. Four-second focus One top-ten idea that sprang from the safety road show was the four-second focus. Employees take a few seconds prior to the start of any job to ask themselves four basic questions: do they have a clear understanding of the work to be performed; are there any immediate hazards; are they using the right tools and equipment for the job; and are there specific safety rules or procedures to follow? Just four seconds to help employees work safer every day. Employee Performance Scorecard (EPS) In 2006, CN launched an unprecedented expansion of our Employee Performance Scorecard (EPS) process to include all unionized employees. The face-to-face dialogue provides employees with tailored recognition for their contribution to CN s five guiding principles, including safety. It also provides an opportunity to increase awareness of local issues and concerns.

7 Process Process initiatives aim to make safety a systematic part of all railroad activities and to focus on the top causes of accidents and injuries. Dangerous Goods In 2006, we strengthened our Dangerous Goods organization with the appointment of a system director and dangerous goods officers in each region. Danny Simpson joined CN as system director, Dangerous Goods and Hazardous Materials, with responsibility for all aspects of Dangerous Goods and Hazardous Material policy, regulation response, and handling at CN. Danny will ensure CN s leadership in the development of any new regulations concerning security issues related to carrying such commodities. Emergency Response Plan (ERP) CN s ERP ensures that, in the event of an incident, there is an immediate, coordinated response ensuring the situation is dealt with quickly, safely and effectively. During the first half of 2007, an enhanced version of CN s ERP is being rolled out across the system, containing expanded guidelines to help supervisors and incident commanders deal with emergency situations whether major or minor. CN also provided incident commander training on the ERP, a refresher course to senior managers, and awareness training.

8 Auditing and efficiency testing CN continued to conduct efficiency tests across the system in 2006 to ensure that employees were properly performing tasks according to safety rules and procedures. In 2006, supervisors performed 32 per cent more efficiency tests than in 2005, focused on the key behaviours that could affect safety performance. Test results were documented in the centralized Performance Monitoring and Rules Compliance (PMRC) database. In 2007, CN will invest in a new, more powerful computer platform for the PMRC. The upgrade will bring higher processing speeds and generate more detailed reports to enable supervisors to easily monitor trends and assess employee safety compliance. Safety Management System (Canada) The Safety Management System (SMS) is a framework for integrating safety into day-to-day railroad operations. In 2006, we strengthened the company s risk assessment process as well as safety monitoring through the PMRC. We also consolidated a number of documents used in car and locomotive inspections, precision engineering, risk assessments and rules compliance which can now be accessed through CN's intranet site. CN Incident Command Courses CN hosts Incident Command courses that have significant benefits for emergency responders and other officials. Participants learn about the roles played by CN departments and personnel at a rail incident, as well as CN s internal incident command structure and how to proceed in such a situation if multiple stakeholders are involved. In 2006, CN held 17 Incident Command courses attended by fire fighters and representatives of the rail industry, government and chemical industry.

9 Technology CN takes full advantage of technology in order to minimize risks. In 2007, the company will further enhance its industryleading wayside and track technology, while increasing capital spending. Engineering Ultrasonic rail flaw detections 25 per cent more ultrasonic rail flaw detections in 2006 compared to Detections are designed to catch cracks and internal rail defects that could potentially lead to broken rails. Detections to increase by 10 per cent in CN will also increase the speed and frequency of testing. TEST car In 2006, tested approximately 48,000 miles of track for geometric imperfections of the track structure with the CN TEST car and 5,000 miles with an outsourced vehicle. Acquisition of a second TEST car planned at a cost of C$5 million to further increase testing. Self-propelled TEST car to be built that will no longer require a locomotive to pull it along the rail. In 2007, CN will spend C$1.6 billion on capital programs, an increase of four per cent over the level of More than C$800 million of this spending will be focused on maintaining the integrity and safety of our rail infrastructure.

10 Wheel Impact Load Detectors (WILD) Installed four new WILD sites in 2006 to catch flat spots and other imperfections on wheels. Lowered alarm thresholds to reduce the number of higher impact wheels travelling across the system which can lead to broken rails. Enhanced the detector s capability to report on overloads/ imbalanced loads by customers which can damage the rail cars and track. Continued to apply tread guard brake shoes to slow the development of shell spots on wheels and reduce the risk of wheel failures. Approximately 150,000 brake shoes have been applied to date. Sightline and surface inspections 50 per cent increase in visual inspections of the track in 2006, from two weekly inspections to three. Sightline and surface inspections of grade crossings continued to be a high priority. CN inspects all of its rail crossings at least once every year. Rail grinding We ground more than 16,000 miles of rail in In addition to maintaining the rail s profile and controlling defects, rail grinding also provides greater reliability of information to the ultrasonic rail flaw detection cars while they are testing. Mechanical In 2007, the Mechanical department will continue to enhance safety with initiatives in targeted areas. Hot Wheel Detectors Mechanical continued to be proactive in 2006 in identifying and repairing cars that recorded three or more hot or warm wheel readings. Now identifying foreign and private cars with warm or hot wheels as a preemptive measure to detect defective valves and air brake components before they damage the car s wheels. Performed over 500 systematic air brake tests on cars found with hot wheels, eliminating potential problems. Doubled the number of electronic single car air brake test devices which are strategically located across the system. We now have 34 electronic testers which enable us to diagnose air brake problems more accurately. Precision Engineering Major initiative to consolidate dozens of separate engineering processes into a single information system. Will enable employees to access and input critical information in real time, such as plant condition, completion of inspections, etc. More accurate, timely information supports improved planning and execution of engineering maintenance activities, correction of track defects and completion of capital work programs.

11 Hot Bearing Detectors Located every 12 to 15 miles on all our core mainline track in Canada to identify and report unsafe wheel bearing temperature levels on moving cars or locomotives. In 2007, we will continue to enhance our state-of-the-art system by re-spacing detectors at similar intervals on other areas of the system. 10 Cold Wheel Detectors CN has two Cold Wheel Detectors at the bottom of long grades where train brakes are applied. The detectors provide early warnings of weaknesses in a car s brake system. We will continue to investigate and repair cars that record multiple cold wheel readings. Roller Bearing Verification We identify roller bearings that show signs of future failure using sophisticated wayside detector methods. This proactive detection enables us to remove bearings before their internal failure becomes a critical factor requiring train stops, setouts and possible derailment. Roll-bys 20 per cent increase in roll-bys, which are supplemental visual inspections of trains, at our major train yards and Intermodal terminals in The inspections help us to identify cars with stuck brakes, dragging equipment, or stuck wheels.

12 C H A M P I O N S A F E T Y A W A R D 2006 Champion Safety Awards Given to the divisions, zones or functions with the lowest and most improved FRA injury and accident ratios and TSB accident ratios. FRA injury ratio Lowest ratio: Western Region Lakehead Division Most improved: Southern Region Wisconsin South Zone FRA accident ratio Lowest ratio: Western Region Alberta South Division Most improved: Southern Region Battle Creek Zone FRA Special Champion Safety Awards Special awards are given for achieving the largest reduction in the number of FRA injuries and accidents. Largest reduction in FRA injuries in 2006: Southern Region Wisconsin South Zone Largest reduction in FRA accidents in 2006: Southern Region Battle Creek Zone 11 TSB accident ratio Lowest ratio: Western Region Alberta South Division Most improved: Eastern Region Northern Ontario Division TSB Special Champion Safety Awards Special awards are given for achieving the largest reduction in the number of TSB accidents. Largest reduction in TSB accidents in 2006: Eastern Region Montreal Division

13 Crossing incidents results 15 per cent reduction in crossing incidents. Fully engaged with provincial, federal, and state officials to identify and eliminate crossing hazards. Worked jointly with local police services to enforce rail crossing safety. Key 2007 initiatives Conduct joint force investigations of near crash incidents with local law enforcement. Deliver rail safety programs to driver s education classes, commercial, and school bus driving schools. Conduct crossing safety blitzes at high-risk crossings, including during Rail Safety Week. Extend Safe Crossing Week to communities in the United States. Trespassing incidents Results 4 per cent reduction in trespassing incidents. Analyzed cases of trespassing on CN property to identify high incidence areas. Increased enforcement in conjunction with local police groups. Increased the awareness of CN employees about trespassing prevention. Key 2007 initiatives Expand joint force operations with local law enforcement at high-incident locations. Deliver educational programs about the dangers of trespassing to schools, community, and civic groups. Post warning and safety messages in local newspapers and publications in high incident locations. Publish ATV and snowmobile safety ads in newspapers in at-risk communities. 12 Read how we re Delivering Responsibly every day In the second quarter of 2007, CN will release its first integrated report on the company s safety and environmental initiatives. Called Delivering Responsibly, the report describes how our operations, the safety of our employees, our communities and the environment, are all fundamentally intertwined. It is the first CN report to be prepared using Global Reporting Initiative (GRI) guidelines which provide an internationally accepted framework for sustainability reporting. To read the report go to:

14 Leadership in Safety 2007 Eastern Region Senior Vice-President s Safety Message By many measures, CN is the top railroad in North America and the Eastern Region has played a big role in getting us there. Our people are the reason behind our success. Your contributions and commitment have enabled us to move ahead, well beyond our closest competitors, to establish CN as the best in the industry. I am very proud of all that we have accomplished together. In reflecting upon the past, however, I am reminded that not everything has been easy for us in the Eastern Region. We have made mistakes and, in extreme cases, paid dearly for them. Among the most troubling issues with which I have had to deal were two fatal workplace accidents and four serious injuries. The most recent happened on the night of March 19, 2007, when a supervisor was run over by the wheels of a car he was attempting to apply handbrakes to during switching. Consider the toll of these accidents: families are torn apart as loved ones are lost, and colleagues must forever struggle with serious, life-changing injuries. While we will continue to support these employees and their families in the years ahead, the painful truth is that these accidents could have been prevented. Violating rules in our industry can be and often is very unforgiving. Sooner or later, it results in an accident, which in our environment can be serious or fatal. We know that in almost all cases of injury and yard accident, either human error or a rule violation was the cause. Yet rule violations are at the core of over 45 per cent of all accidents. Within the rail industry we have historically measured safety performance based on TSB or FRA criteria. The true measure of safety within our business, however, is not about statistics. It is about performing each and every task in compliance with the rules, Delivering safely

15 every time. It s about actively communicating with our colleagues about safety, staying alert to potential risks on the job and having zero tolerance for rule violations. An unwavering commitment to safety means choosing to do the right thing each and every time, and, most importantly, when no one is watching. We are continuing to invest in our plant in 2007 with rail installation and capital infrastructure improvements. We are also communicating our expectations to customers regarding plant improvements on their leads and sidings. We will maintain the focus on quality car inspections, roll-by inspections and CROR 110 & 111 train inspections. The single most important contribution any of us can make to the safety of our business, however, is to comply unfailingly with the rules every day. In 2007, supervisors will continue to be very visible on the property to perform unannounced efficiency tests and safety blitzes and to monitor rule compliance. When you see officers conduct their safety walkabouts throughout the property, I strongly encourage you to engage them in discussion about safety rules and ask any questions you have. It s up to all of us to raise the bar on safety, for our region s continuing success and as North America s number one railroad. Keith Creel Senior Vice-President, Eastern Region FRA personal injury frequency injuries/200,000 person hours FRA train accident frequency accidents per million train miles Transportation Safety Board (TSB) accidents accidents per million train miles

16 Leadership in Safety 2007 Senior Vice-President s Safety Message Western Region 2006 Results TSB-Reportable Accidents 10% reduction in accidents overall 40% reduction in main track accidents 10% increase in non-main track accidents FRA-Reportable Injuries 8% reduction overall Running a safe railroad without anyone getting hurt is one of our fundamental principles at CN. I would characterize our 2006 results as mixed. We took significant steps forward in some areas. However, there remain areas of major concern. We fell short of the need to improve our non-main track accident ratio. For the second consecutive year, the number of TSB non-main track accidents went up in Western Region. These results are unacceptable. The majority of our nonmain track accidents are the result of employees failing to follow operating rules. To address the 2007 key initiatives Leverage the ABC behaviour model to reduce non-main track/yard accidents and improve at-risk behaviours in the workplace that result in injury Focus on non-compliance with critical rules, such as Rule 115 for pushing equipment Re-energize safety processes such as the Job Briefing. Continue to encourage the four-second focus concept Stress quality of PMRCs, not quantity Continue collaboration with Safety Committees Engage employees in safety process with the EPS feedback tool Support our new hires by assigning mentors Implement aggressive capital plan for Savage Alberta Railway acquisition and continue efforts on the former MacKenzie Northern Improve track and equipment inspection processes Enhance risk management program for natural hazards in BC Celebrate safety successes problem, we will focus on driving compliance with critical switching rules, most notably Rule 115 for pushing equipment. We will also leverage the ABCs to reduce at-risk behaviours that are causing non-main track accidents and injuries. Our audits and PMRCs will be pinpointed on specific problem issues. The quality of tests, not quantity, will drive the process. Rule violations, whether or not they result in accidents, will be thoroughly investigated. Toward the end of 2006, we began to increase the number of post-incident drug and alcohol tests. In the fourth quarter of 2006, nearly 20 per cent of employees tested in post-accident testing, tested positive. As well, three employees were tested for reasonable cause and all tested positive. These are very disturbing results. All of us deserve to have complete faith that the colleagues we work with are fully capable of performing their duties. Our Drug and Alcohol Policy is clear, and will be rigorously enforced. On a more positive note, the Western Region made excellent progress on reducing TSB main track accidents last year. Also, our injury performance continues to improve in the Western Region, with a 8 per cent reduction in FRA injuries in These improvements are the direct result of the involvement of all levels of the organization, including the work of the Safety Committees. These committees were more proactive in addressing the top causes of injuries Delivering safely

17 and accidents in their areas and in driving safety performance. I encourage more employees to use the four-second focus concept that came out of the safety road show session in Prince George. Take just four seconds before the start of every job to consider every safety angle. Follow the rules, and employ safe operating practices. Remember, our goal is to get the job done, and to ensure nobody gets hurt doing it. I would also like to extend my congratulations to the Lakehead Division, which led CN with the lowest FRA injury ratio; and the Alberta South Division for the lowest FRA and TSB accident ratios on the system. The Savage Alberta Railway in northwestern Alberta is now part of our network. We began an aggressive capital investment plan to address concerns with the plant. Similar work will continue on the former MacKenzie Northern where deteriorated track conditions contributed to the number of TSB accidents last year. These problems can be fixed, and CN will invest the capital needed to bring these properties back up to our standards. Our 2007 Safety Action Plan calls for significant improvements in safety in the Western Region. We simply must improve our main track and non-main track accident ratios. Main track authority violations, which went up from 13 in 2005 to 30 in 2006, are a major issue. The underlying source of these violations is behaviours, which we will address through targeted efficiency tests, safety walkabouts, coaching, and by encouraging greater employee awareness. We must also do a better job of preventing injuries. Stay focused on ensuring the work is performed safely no matter how important or urgent. We owe it to ourselves, our families and our colleagues to keep our workplace safe. Peter Marshall Senior Vice-President, Western Region FRA personal injury frequency injuries / 200,000 person hours * FRA train accident frequency accidents per million train miles * Transportation Safety Board (TSB) accidents accidents per million train miles * Results include GLT pro-forma, as if it had been part of CN for the full year.

18 Leadership in Safety 2007 Senior Vice-President s Safety Message Southern Region There s a long list of reasons why I m proud to work with all of you in our Southern Region. For one thing, we get results. For another, when faced with a challenge, we confront it squarely, get busy, and get it done. That s exactly our situation when it comes to safety. In 2006 we got results of which we can all be proud. But we also face challenges in 2007 that will take each of us accepting personal responsibility and accountability for making our railroad an even safer place to work. Let s start with the 2006 results results to which many of you made significant contributions: We decreased FRA-reportable personal injuries by 20.4 per cent. We reduced injuries from 205 to 167. Our Wisconsin South Zone won Champion Safety Awards for the most improved FRA injury ratio and the largest reduction in FRA injuries. Our Battle Creek Zone won Champion Safety Awards for the most improved FRA accident ratio and for the largest reduction in FRA train accidents. At the same time, many of our Southern Region colleagues took on new initiatives to make our Region even safer: The Wisconsin Division developed CRS (for Coverage-Route-Shove), a safer way to manage shove moves. Our Mechanical team pioneered the Safety Agreement, a set of written commitments based on conversations between supervisors and employees around three questions: How can employees contribute to a safe workplace? What barriers can the supervisors remove? Will employees pledge to work safely in 2007 not just for themselves, but also for their families and colleagues? In 2007, we re going to expand CRS and the Safety Agreement to all parts of our region. Even more important, we re going to use the lessons that CRS and the Safety Agreement taught us to make our railroad safer. The challenge to do so is certainly there. While we did many things right when it came to safety in 2006, we have room plenty of room to improve. For example, a 57 per cent increase in our region s FRA-reportable accidents versus 2005 is something none of us should find acceptable especially when we know how well our region can do when we put our mind to it. What lessons did CRS and the Safety Agreement teach us that we can use to bring this number down way down? First, behavior matters. A safe workplace doesn t just happen. It happens because people choose the safe way to work every moment of every day. Think about that last injury or accident. On rare occasions very rare occasions the cause may have been something beyond anyone s control. But almost always, accidents and injuries are about a behavior that was wrong. Second, thinking is required. How many times when you hear about an accident or injury do you ask yourself, What were they thinking? Behaviors matter, but to make sure they re the right behaviors, we need to be thinking every minute we re on the job. Third, safety isn t something separate from our work; it s an essential part of good railroading. Sometimes we tend to think about our Guiding Principles as five separate things. But the Q4 leader and the Q4 employee gets the right results the right Delivering safely

19 way by focusing on all five Guiding Principles all the time, never forgetting the relationships among them and never sacrificing one for another. When you re thinking hard about your work, you aren t just more likely to meet your Service, Cost Control, Asset Utilization and People targets. You re also much more likely to come up with solutions that address Safety as well. The same thing works in reverse: thinking hard about how to do a job safely helps you think through how to do the job better. When was the last time you heard about an accident or injury that was the result of a smart business decision? How will we apply these lessons to improving our safety performance in 2007? First, we ll encourage employees to think about their safety behavior during the annual EPS process by asking them to make a commitment to work injury- and accident-free. Second, supervisors will help employees think about the right safety behaviors through increased coaching and mentoring. Root cause analysis and clear, precise coaching action plans will make that coaching and mentoring as objective and effective as possible. The goal will likewise be clear: strict rules compliance and zero tolerance for unsafe behaviors. Third, we know that what gets measured gets done, so we ll rely even more on the measurement whether it s increased auditing or efficiency testing to check our progress. Fourth, we ll eliminate wrong behaviors. For example, cellular phones can boost our efficiency and effectiveness. But they can also distract the user, as well as those working nearby. For that reason, we strictly limit the use of cellular phones to those issued by CN and used in accordance with company guidelines and good judgment. Fifth, we will encourage you to Inspect what you expect to think about the behaviors you need to do the job right. We learned this catchphrase during last fall s Network Ops Leadership in Safety meetings: a way to remember to take time with every job to inspect for hazards and plan how to work safely. Sixth, we have a safety LIFE (Live Injury Free Everyday) line in place a safety hotline that you can use to report barriers that are in the way of you and your colleagues working safely. All calls will be handled in complete confidence. All issues will receive a response. But a safety LIFE line will only work if you use it. FRA personal injury frequency injuries / 200,000 person hours * FRA train accident frequency accidents per million train miles * * Results include GLT pro-forma, as if it had been part of CN for the full year. Our safety goal for 2007 is simple. What we did right in 2006, we ll do right in What we should have done better in 2006, we ll get right in We ll do what we ve done over and over before: face up to the challenge, think through the solutions, take responsibility for making change happen and hold ourselves accountable for the results. What we ll get is a better business, a stronger railroad and, most important, a place to work where each of us keeps all of us safe. Gordon Trafton Senior Vice-President, Southern Region