Canadian National Railway’s intermodal volumes
In the 19th week of 2017, Canadian National Railway’s (CNI) overall intermodal volumes rose 22.9%.
Canadian National Railway moved more than 50,000 containers in the 19th week of 2017, compared to the nearly 41,000 containers it moved in the corresponding week of 2016. The rise in CNI’s intermodal volumes was much higher than the overall figures reported by US and Canadian railroad companies. Even the company’s intermodal traffic, in percentage terms, was far ahead of close rival Canadian Pacific’s (CP) intermodal traffic.
Why is intermodal traffic important for Canadian National?
Canadian National Railway’s Intermodal segment contributed more than 25.0% of the company’s total revenue in 2016. Of the company’s total carloads in the year, intermodal’s share made up ~42.0%. Canadian National Railway also operates one of the largest trucking services in Canada, which supplements its intermodal business.
Canadian National’s competitive advantage is its sole access to the Port of Prince Rupert in British Columbia. Canadian National connects Vancouver, British Columbia, with Prince Rupert in a long arc, providing opportunities for the company to move containers from Asia to the US heartland.
Canadian National’s Domestic segment is driven by consumer markets and US and Canadian economic growth. The company’s International intermodal segment is largely influenced by North American economic and trade conditions.
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In the final part of this series, we’ll take a look at Canadian Pacific Railway’s (CP) weekly rail traffic data.