PASSPORT 2011 Your Passport to CN Optional Services

Transcription

1 PASSPORT 2011 Your Passport to CN Optional Services Our Customers Drive This Train We are very pleased to introduce our new clear guidelines. From these discussions, we Optional Services Catalogue, PASSPORT 2011, have also learned from your successes and which announces our upcoming January 1, 2011 want to share these with our larger customer optional services changes. Our customers have base. We recognize that there's no single contributed immensely to this new edition. Over formula. Each customer and industry is the last few years, we have received consistent unique - and each has its own set of feedback from our customers. You have asked challenges, which is why we look forward to us to listen to your day-to-day challenges and building on this first edition. work with you to design a simpler product with Effective January 1, 2011

2 PASSPORT 2011 CN Optional Services Catalogue Content The Right Tools 3 The Automotive Challenge 4 Fleet Productivity 5 Predictability is Key 6 Supply Chain Visibilty 7 Carload Changes Index 8 Intermodal Changes Index 9 Your Contacts 10 Our Commitment We commit to billing you for an optional service within 21 days, or that service is free

3 PASSPORT 2011 I drive this train. Gary Granquist LP Building Products Logistics Analyst The Right Tools As a manufacturer of building products serving both distribution and retail channels, we have benefited from several improvement initiatives with CN. Across Canada and the US Great Lakes Region, we have worked together in the areas of: contingency planning, equipment standardization, service metrics and mill service plans. We see these latest changes in Optional Services as providing new tools for LP to gain greater control and flexibility in how we define and manage our car orders. This, coupled with the changes in on-line metrics, should help us in our internal efforts to provide our customers with the levels of service they require. Gary Granquist, Logistics Analyst, LP Building Products Cancelling or Reducing Your Order After Cutoff New Car Order Process implemented in August 2010 No fee You may make reductions without a cancellation fee if you inform us 72 hours or more prior to the want date and time. Your order will be cancelled and reduced immediately. If you informed us in less than 72 hours, the order will be reviewed by CN for re-distribution, and if possible, the confirmed number will be adjusted and in this case, no asset use fee would apply. If the empties cannot be re-distributed, you will receive the cars and you can keep the empty railcars for loading, reducing your future orders or release the empty railcars as Not Used. In this case, asset use fees will apply.

4 PASSPORT 2011 Working with Importers Transport Council At CN s Autoport facilities, we handle over 1.5 million vehicles annually for customers like Importers Transport Council The Automotive Challenge Logistics handling and inventory management are key drivers in the automobile business. Importers Transport Council is an automotive shippers group for BMW, Suzuki, Subaru, Jaguar, Land Rover and Volvo that imports cars from overseas into Canada. As an automotive customer of CN's for over 20 years, we have seen major improvements in inventory management at their auto compounds across the country in recent years. A catalyst of this change has been the introduction of CN's Automotive Services Tariff. The tariff strikes a nice balance of ensuring that facility capacity is available for all customers while discouraging inventory build-ups that would result in congestion and lead to delays. In short, the tariff has worked in that it has accommodated the inventory requirements of customers including the option to store vehicles at compounds for short periods of time, while improving the fluidity at the auto compounds across the country." Kevin Agnew, Managing Director, Importers Transport Council Unloading and Loading Vehicles We provide both unloading and loading services for new or used vehicles shipped on multi-level railcars. Dealer Pick-Up CN Automotive Facilities If you wish, we can arrange for services relating to the delivery or receipt of vehicles by an organization other than a haul-away carrier reduce to $23 per vehicle reduce to $40 per vehicle

5 PASSPORT 2011 Fleet Productivity Petroleum and chemical companies manage highly complex supply chains. Given the level of investment they make in their fleet, they are getting more involved with the day-to-day operations of fleet management. Ten years ago, fleet managers would focus solely on negotiating good rail rates; today they focus more on how they use the railcars. CN Optional Services were a driving force that steered our customers attention towards fleet productivity and velocity. Private Loaded Railcars Held on CN Track reduce to $50 per railcar / per day (Non-Hazardous Materials only) Private Loaded Railcars Held on CN Track Inhalation Hazards Materials PIH/TIH increase to $1,100 per railcar / per day Fee includes inspection by CN, based on regulatory guidelines Private Empty Railcars Held on CN Track Fee for railcars held on CN tracks include switching to and from tracks where the railcar is being held reduce to $50 per railcar / per day

6 PASSPORT 2011 Predictability Is Key Transport costs remain a significant factor in the production and delivery of manufactured products. Our customers are constantly looking at ways to improve their overall plant contribution. Many of our customers lead cost reduction programs across their organizations. Their transportation budget, more specifically the optional services, is often one of the main drivers of cost variability at their plants. We like to get engaged and work with them to implement cost control initiatives including switching efficiencies at their facilities. Our customers have seen significant improvement. Switching - Intraplant increase to $195 per railcar If you require additional switching at your location Switching Incidental to Pick-up / Delivery increase to $39 per railcar If CN is required to move existing railcars on your track to facilitate pick-up or delivery Switching - Special Switching Fee Additional switching services beyond regular scheduled service, to have railcars moved or turned for loading or unloading increase to $395 hour / minimum 8 hours

7 PASSPORT 2011 I drive this train. Tim Roulston President Motionology Supply Chain Visibility As a dedicated LTL carrier for one of Canada s largest retailers, we know the importance of providing our customers with complete visibility of their shipments from beginning to end. Over the past few years, we ve noticed a big improvement in CN s ebusiness capabilities in terms of ease of use and providing accurate information. The simplification of CN s Optional Services means we are able to focus on what s important: providing our customers who are shipping highly time-sensitive products with seamless transportation service. Dispatching a shipment to the rail terminal without billing information in place is not an option anymore. With easy-to-use ebusiness tools and Optional Services as a reminder to stay on top of things, we are able to provide the information required, track our shipments and provide superior visibility to our customers. Tim Roulston, President, Motionology Driver Wait Charges Driver wait charge cycle ends on the 15 th and 30 th of every month Missing Rail Billing When a driver arrives at a rail terminal ramp with a loaded container and no rail billing has been provided, a flat fee will be assessed to the payer of freight new to CN 9100 $150 per container

8 PASSPORT 2011 CN Optional Services Carload Changes Index The following optional services fees under CN 9000 will be increased, reduced or removed from the catalogue, effective January 1, Private Railcars on CN Track Private loaded railcars (non-hazardous materials) Customers have up to 48 hours at destination reduce to $50 per railcar / per day Private loaded railcars containing PIH/TIH materials Customers have no free time. Fee includes inspection by CN increase to $1,100 per railcar / per day Private empty railcars prior to being placed for loading Locomotives or Railcars Moving on Own Wheels Customer locomotives or railcars can be shipped as freight. A fee applies when we hold your equipment for you on CN track reduce to $50 per railcar / per day reduce to $50 per railcar / per day Switching Services Switching Intraplant If you require additional switching at your location Switching Incidental to Pick-up/Delivery If CN is required to move existing railcars on your track to facilitate pick-up or delivery increase to $195 per railcar increase to $39 per railcar Switching Special Switching Fee If you require a special switch beyond CN s regularly scheduled service and CN can accommodate your request increase to $395 per hour / min. 8 hours Switching Turning Railcars Turning railcars for safe unloading or loading at the customer plant remove $300 per railcar Switching Special Train Fee If you require special train services to move your product and CN can accommodate your request increase to $118 per mile / min. 100 miles Weighing Weighing services at a private scale at the customer plant remove $110 per railcar Unloading of CN Railcars Unloader releasing railcars not suitable for loading remove $320 per railcar Unsafe Shipments on CN s Network Overloaded / Improperly Loaded Railcars reduce to $200/$1,000/$5,000/$10,000 per railcar The fee threshold for railcars unsafe to move forward will now apply per specific customer shipping location

9 PASSPORT 2011 CN Optional Services Intermodal Index The following optional services fees and definitions under CN 9100, 9200 and 6800 will be increased, reduced, removed or s will be provided, effective January 1, You will be notified of the updated tariffs 30 days before the changes comes into effect. Missing Rail Billing When a CNTL driver arrives at a rail terminal ramp with a loaded container and no rail billing has been provided new to CN 9100 $150 per container Storage Guarantee Changes to process for guaranteeing container Storage at U.S. Terminals new High-Value Cargo Cargo exceeding $250,000 will be considered high-value cargo Lost or Damaged Customer Equipment Clarification will be added to the depreciation rate for domestic customer equipment Rules and Regulations for the Acceptance of Containers Update to list of prohibited commodities and special dangerous goods in Canada and the U.S. Asset Use As of February 1, 2011, asset use time will start with the later of notification or deramp Driver Wait Charges Driver wait charge cycle ends on the 15 th and 30 th of every month Swamper/Helper Swamper/helper charges are the responsibility of the payer of freight

10 Your Contacts PASSPORT 2011 Your Sales Director Your Account Manager Even if we talk to our customers on a daily basis, we have discovered that we need to ask the right questions and dig deeper to understand what they really need and why they need it. Massimo Carmosino A Sales Director for Industrial Products Your Customer Executive I make it my priority to engage our customers in our product development efforts. Understanding our customers needs helps us develop the right products and services. Margy Haines A Forest Products Account Manager Your ebusiness Experts We made some significant changes over the last 10 years. It could have been confusing at times and sometimes painful for our customers. However we were trying to do the right thing for the right reason. Jean-Jacques Ruest, jeanjacques.ruest@cn.ca We work with all the participants of our customers supply chain, their vendors, their mill operators, the terminals, and their customers. Their feedback helps us improve our tools ebusiness@cn.ca Feedback. If you have questions and/or comments, do not hesitate to contact us. We need your feedback to improve our services.