REACH FARTHER. Andrew Fuller, AVP Domestic Intermodal. April 2018 NEARS CONFERENCE 2018
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1 REACH FARTHER NEARS CONFERENCE 2018 Andrew Fuller, AVP Domestic Intermodal April
2 Moving the Economy (Our role) Global West 26% Global East 5% North America 66% End Market Diversity 24% Intermodal (consumer & manufacturing) 17% Grain & Fertilizers 17% Petroleum & Chemicals 14% Forest Products 12% Metals & Minerals 6% Automotive 4% Coal 6% Other Revenues Economic Diversity 33% Canada/U.S. Trade 26% Global Trade Asia 17% Domestic Canada 16% Domestic U.S. 5% Global Trade Europe 3% Global Trade South America Based on 2017 revenues Global South 3% 2
3 CN by the Numbers 495 train starts/daily 15,700 shipments each day (5.7M/yr) 1,700 high HP locomotives 120,000 active cars online on any given day 6 major port connections 10 main yards 18 finished vehicle compounds 21 intermodal container terminals 58 carload transload centers 200 interchange locations 11,000 carload origins/destinations Working together to move more than $250 billion worth of goods every year. 3
4 The Transforming Economy As a business owner, you know better than anyone how fast our economy is changing. Of course, that changes the way you ship. The rise of ecommerce and the immediacy of content and connections has changed the expectations people have for the products they buy. Shippers need to be more agile and better distribute their goods for reaching their customers quickly. Speed matters. CN industry-leading innovation is committed to the speed and efficient delivery of your cargo. Prince George Edmonton Saskatoon HERE ARE SOME EXAMPLES: CN pioneered live-lifting for fluid border crossing. CN innovated the only Chicago bypass enabling our customers to save travel time by avoiding Chicago congestion. Vancouver Calgary Moncton Winnipeg Duluth Chippewa Falls Arcadia Joliet Decatur Toronto Chicago Indianapolis Memphis Detroit Montreal Malport Halifax CN connected exporter to the Port of Prince Rupert, the closest North American port to Asian markets. Jackson New Orleans Mobile 4
5 trong Capital Program for Safety & Fluidity 3,200 2,706 2,752 2,703 Positive Train Control (PTC) Equipment (and rolling stock) 2,297 1,718 1,712 1,825 2,017 Productivity, capacity initiatives, including IT 21%* 19% 18% 19% 19% 21% 23% 21% Track and railway infrastructure maintenance F (in millions $ Cdn) * Reflects % of revenues ~C$500M Step up in investment in
6 Building More Capacity & Fluidity (A must to drive service & growth) Total network of ~20K route miles ~600 miles of track installed in each of last few years ~2 million ties installed in each of last few years 122 long siding and double track additions since
7 PTC Cutting Edge Technology $400 million CAD in 2018 along 3,500 route miles of U.S. network CN investing total of US$1.4 billion on PTC by 2020 On track to meet deadlines PTC is an unprecedented technological challenge to running main line train 7 7
8 Driving Train & Track Reliability with Technology Rolling Stock Wheels, bearing, brakes Hose and brake rigging Over or imbalance loading Track Rail integrity Rail structure/geometry Ties Natural hazards Wayside Inspection System (WIS) Hot bearing detectors Hot wheel detectors Dragging equipment detectors Wheel Impact Load Detectors (WILD) Machine Vision Detectors (MVD) Rail Flaw Detection (RFD) Track Evaluation System (TEST) Rock and snow slide fences Extreme weather and earthquake alerts In-Train Forces Train handling Train marshalling rules Distributed power Marshalling rules Witronix Locomotive Engineer Proficiency Profile (LEPP) Training and Simulators Trip Optimizer Safe train movements depend on multiple components all working together as a system Hot box detector
9 Rolling Stock Inspection Systems Measures Bearing temperature, wheel temperature and dragging equipment 815 wayside inspection systems across the CN network Detects wheels which have surface flat spots or other imperfections, which can lead to broken wheels/rails Alerts Automatically alerts train crew and Rail Traffic Control in case of urgent condition Monitors trends to drive preventative action Route with mile spacing Route with mile spacing Route with mile spacing Ongoing calibration to ensure effectiveness Most advanced system in North America - - Monitors the network for unsafe rolling stock and operating conditions
10 Leveraging other Automated Systems Slide fences Areas prone to rockslides and avalanches High water detectors Areas susceptible to rapid spring run or extreme rain events Earthquake notification Real time notification of seismic events Extreme weather notifications Constant weather data and alerts`` 10
11 Innovation throughout the cold supply chain When it comes to shipping your temperature sensitive goods every degree counts and CN has innovated some really cool technologies to integrate temperature-controlled shipping into our already efficient, costeffective, and flexible Intermodal services. Cool Facts 17 CargoCool containers can be powered by a single IntelliGEN power pack For shipping perishable goods, CN proudly offers two container options that seamlessly integrate with our existing Intermodal service offerings: CN containers use the latest in telematics technology for transporting perishable goods. Each CargoCool container offers the power of up to 100 refrigerators to ensure that your perishable commodities arrive cool and fresh ReeferTrak technology provides up-to-theminute temperature monitoring as well as real-time GPS tracking and fuel consumption CN has almost quadrupled our CargoCool container units in the last three years to ensure capacity 40-ft Eco-Therm insulated container These containers have unique insulating properties that protect products from freezing for up to 8 days of transit. The three core competencies of a cold supply chain are: strong reporting, a robust monitoring capability, and superior exception management. 53-ft CargoCool refridgerated container CN s state-of-the-art 53 CargoCool refrigerated containers ensure that proper temperatures are maintained for every step of the way. 11
12 Automated Gate Systems Enhanced gate security using biometric entry technology Standardized consistent business rules across all terminals across the network providing a seamless customer experience Ability to remotely control gates across the network Promotes transaction time optimization, cost reduction and manpower optimization 12
13 Service Experience Project Enable Customer-focused multimodal connected service Reduce our costs through a connected streamlined work flow Business management via integrated information Customer-focused experience Predictable journey Improved visibility of the container. Standardize internal work processes. Automated flow monitoring Interconnected cost visibility Improved pricing intelligence Improved forecast at a more granular demand level Improved product service evaluation 13
14 REACH Questions? Contact or call
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