Canadian National Railway Leases Equipment, Urges Employees to Delay Retirement to Stem Challenges
By Cara Lombardo
Canadian National Railway Co.'s (CNI) interim CEO says the company is sending additional people and equipment out to clear backlogs across its network two days after its chief executive resigned.
"We can and we will do much better, and that starts today--no excuses," Interim CEO J.J. Ruest said Wednesday in prepared remarks.
High demand, insufficient network resiliency and bad winter weather has caused issues for the railway operator since the fall of last year.
The company said it is offering incentives to employees to delay retirement, adding crews in Western Canada, leasing 130 locomotives to increase capacity and investing over $250 million to build new track and yard capacity.
Mr. Ruest said the company has a sense of urgency and is focused on regaining the confidence of Canadian businesses and protecting Canada's reputation as a stable trade partner.
Former CEO Luc Jobin abruptly left the company this week.
The company has a network of about 20,000 miles of railway track covering Canada and the U.S.'s Midwest and south.
Canadian National Railway shares are down 2.4% over the past year.
Write to Cara Lombardo at firstname.lastname@example.org
(END) Dow Jones Newswires
March 07, 2018 06:43 ET (11:43 GMT)Copyright (c) 2018 Dow Jones & Company, Inc.