Dan Bresolin
Assistant Vice-President
International, Intermodal
Lake Geneva, WI
12 July 2016
CN is a Solid Railroad
With an extensive Network
Global West 24%
Domestic Canada 18%
Global East 4%
Transborder 33%
23,000 engaged employees
Domestic U.S. 18%
Diversified Portfolio
Create Matchback
Intermodal
23%
Petroleum and Chemicals
19%
Grain and Fertilizers
16%
Forest Products
14%
Metals and Minerals
11%
Automotive
6%
Other Revenues
6%
Coal
5%
20,000 route-miles
C$12.6B of customer support
Global South 3%
C$60B of shareholder support
Enabling over $250 billion
worth of business
* 2015 Revenues
22
Working With Our Port Partners
$2.75B planned CN Investments for 2016
3
Delivering & Refining the End-to-End Supply Chain
…to Supply Chain Thinking & Round Trip Thinking
True origin
True destination
CNTL
exp
b
Round-trip
“ It’s about the velocity of the container
through the Entire Supply Chain”
4
Facing and resolving Challenges
Ocean Vessels
Import volume forecast
Vessels schedule
Port Evacuation
Railcar Supply
Labour
Train Service
Train connections
Service disruptions
Inland Terminals
Carter turn time
On-time train schedule
Export Shipments
At ports to meet vessels
Continuous improvement of forecast accuracy
working with Steamship lines
Service Level Agreements – Joint KPI’s
CN Port Managers
Port expansions
Railcar pipeline management
Pre-positioning equipment in strategic locations
Continuous improvements
Recovery Plans
Key Process Indicators
Reliable & consistent transit times
Automated gate system
Gate & train Reservations
Expanded footprints
Managing to optimize operations
Constant monitoring of ETA’s
Export cut-offs managed on daily basis
5
Creating Value Throughout The Entire Supply Chain
Fast Consistent
+ reliable rail
Service
Prince
Rupert
Seamless
border crossing
<1% Inspected
100% VACIS*
* Vehicle and Cargo
Prince George
Via Port of
Vancouver
Indianapolis, IN
Via Port of
Inspection System
Prince
Rupert
Edmonton
Indianapolis, IN
Calgary
Vessel arrival at
Ocean Transit
Port
Total Transit
From Asia
to availability at
From Asia
Inland Terminal
11 to 12 days
10 Days
21 to 22 Days
Vessel arrival
CN Intermodal
terminals at
Ocean Transit
Port
Total Transit
CN-served ports
destinations at
From Asia CN-served
to availability
From Asia
Inland Terminal
10 to 11 days
10 Days
20 to 21 Days
Saskatoon
Vancouver
Moncton
Winnipeg
Lowest fuel
surcharge in
the rail
industry
Fastest ocean
transit to
North America
West coast
Halifax
Saint John
Ranier, MN
Montreal
Chippewa Falls
EJ&E - Fast rail
access around
Chicago
Arcadia
Toronto
Chicago
Detroit
Joliet
Port Fees In CDN Dollar.
40% Savings in the last 3 years
~~~~~
Supply Chain Agreements
holding all stakeholders
accountable
Indianapolis
Decatur
 Fast Carter Turn Time
 Converting the last mile
from a Highway delivery
to a local dray move
Memphis
Providing Capacity
Service - Value
New Orleans
Jackson
Mobile
6
Import/Export Balance Critical to
Supply Chain Efficiency
Lumber
Vancouver
Paper
DRP/EXPORT
Pulp
Polyethylene
Grain
Import/Export
Traffic Balance
is critical!
7
Indianapolis Growth
Indianapolis
Annual Import - Export
Volume (Units)
30,000
CN
25,000
20,000
15,000
Compounded
Annual
Growth Rate of
26%!
10,000
5,000
0
2013
2014
2015
2016 YEO @
May 10
Indianapolis Q1 2016
Carter Turn Time Avg:
Customer Dwell Avg:
16 Minutes
52 Hours
8
Changing Geography
9
New - The CN Gulf Connection
New Orleans
• Completed new rail yard expansion now with 5 times capacity
and 1 track turnover/day
• Planned port expansion (next phase) of +23 acres will take the
capacity from 800k to 950k teu
• Joint marketing plan to add Asia – All water service
To/From Latin America:
Mobile
• Intermodal container transfer facility completed May 2016
o Annual throughput of 200k TEUs
• Now: 2 cranes reaching 19 across
• Planning 2 additional cranes reaching 22 across
• Can handle vessels up to 10,000 TEU
TP18
Asia All water Svc
GME
Asia All water Svc
PEX3
Asia Around the World Svc
Forest Products
Steel
Coffee
Furniture
Poultry & Meats
Fruits & Vegetables
Automotive products
Forest Products
Furniture
Retail
10
Prince Rupert Capacity Available Now!
Steady growth in capacity
Additional Terminal Capacity
Coming on April & October 2016
Berth, Terminal & Rail Capacity
Continues to develop
SPEED






REACH
New ownership: DP World (H2 2015)
Now: 4 cranes 120 ft / 36 m high (reaching 22 across)
Berth window available now
Berth extension construction underway
o Berth length to 800 meters
o Additional 8,000 ft of working rail for total of 22,000 ft dock rail
o Addition of 6 Rubber Gantry Cranes
o +3 cranes 160ft / 50 m high (reaching 25 across)
Surrounded by additional CN capacity
o Kaien siding
o Road Rail Utility Corridor
Potential for Prince Rupert stuffing/transloading
operations
o
Provides Intermodal & bulk to transload options
o
Significant availability of empty containers
o
Evaluation underway
July 2017
STABILITY
11
11
Vancouver Gateway Expansion Adding to Today’s Capacity
Deltaport
DELTAPORT
• $280M CAD Deltaport Intermodal expansion of
additional 600,000 TEUs per year capacity by
July 2017
• With expansion, new capacity = 2.4M TEUs
• 2 high-efficiency “Megamax” ship-to-shore cranes
• Relocation of existing terminal trackage
• 2 x 12,000 ft new rail tracks
12
Vancouver Gateway Expands with Centerm in 2016



600,000 TEU additional capacity by 2019
2 new super post Panamax quay cranes added
Capability to handle 2 ultra large container ships
simultaneously
Improvements to
access roads
Rail tracks length
extended and extra
track added
Dedicated
empty yard
Berth length
extended to
715 m
Reclaimed
land
Going From 900,000 to 1.5M TEUs Annually
13
All Ports served by CN lead to/from Indianapolis
Prince Rupert 10 Days Transit
Montreal 7 Days Transit
Prince
Rupert
Halifax 8 Days Transit
Montreal
Vancouver
Vancouver 12 Days Transit
Halifax
Indianapolis
New Orleans 6 Days Transit
New
Orleans
Mobile
Mobile 7 Days Transit
14
Raising the Bar for Customer Service
24/7 Coverage
Comprehensive
Onboarding
Program
Customerspecific Service
Delivery Profiles
Dedicated
Service Team
Custom Tailored
Service Offering
Available Onsite Support
CN
Logistics
Centre
Detailed KPI
Reports –
custom reporting
available
15
Proactive, Specialized Supply Chain Logistics Support
International Specific : 15 fully trained Logistics staff
 Import/Export
o
o
o
Online tracking from end to end.
Proactive customer communication
on movement and exceptions
Daily monitoring of port glowing boxes
 Equipment Control
o
o
o
o
Customised reporting capability
Monitor DRP equipment turn around time
Plan and execute empty repositioning to
the ports
End to End pipeline management
 Cargo Cool Reefers
o
o
o
o
Dedicated reefer specialist
End to End monitoring of traffic
Manage reefer allocations by service &
customer
Import glowing box monitoring at all ports
 Auto Team
o
o
o
o
“what gets measured, gets done”
Export desk, Reefer desk, Automotive desk,
Equipment desk, customer specific service Rep.
Dedicated single point of contact
Customized reports created by extracting the automotive customer from the rail bill
Ability to prioritize the unloading of hot containers at the destination terminal
Identify automotive export shipments at the origin terminal to ensure they make the intended vessel
16
Delivering & Refining the End-to-End Supply Chain
Evolved from railroad thinking…
Rail origin
Rail destination
…to Supply Chain Thinking & Round Trip Thinking
True origin
True destination
CNTL
exp
b
Round-trip
“ It’s about the velocity of the container
through the Entire Supply Chain”
17