22 THE CAAR COMMUNICATOR long-haul interswitching in 2018. The resurrected extended interswitching project will now expand the regulated interswitching distance from 30 to 160 kilometres in Manitoba, Saskatchewan, and Alberta. CPKC, and we suspect CN, fear that the temporary 18-month pilot project may once again become a permanent thing. Mary-Jane Bennett, a former member of the Canadian Transportation Agency, wrote in a March 8, 2023, article for the Financial Post—but quoted in the CPKC report: “Interswitching is inefficient... It wouldn’t correct problems with the supply chain; it would amplify them.” In a May 18, 2023, Financial Post article, but also quoted in the CPKC article, Murad Al-Katib, the President and Chief Executive Officer of AGT Food and Ingredients Inc., was quoted: “I’m concerned it’s going to have ripple effects... We’re not in favour of supply chain measures that benefit very few shippers yet can have [a] very serious impact on the supply chain.” Al-Katib has built his Canadian startup into a global billion-dollar value-added pulses, staple foods, and ingredient company. He is also serving as Chair of the Government of Canada National Agri-Food Strategy Roundtable and as the Economic Development Regina Board Chair. The report states that extended interswitching should be mothballed (again) because of “the market distortions it facilitated, especially with respect to allowing US carriers to solicit Canadian traffic without the reciprocal ability for Canadian railways to do the same in the US.” CPKC said that at the time of the initial demise of extended interswitching, Transport Canada also saw that it was harming Canadian shipping, and that’s why they developed long-haul interswitching “as an alternative so that shippers would have access to competing railways up to 1,200 km away, but without the damaging consequences of cost-based (and in some cases non-compensatory) regulated rates under extended interswitching.” Again, this isn’t to thumb our collective nose at either CN or CPKC—we just acknowledge that regardless of whatever plans CN and CPKC may publish, they are still slaves to the weather and a plethora of other outside sources. That strange combination of snafu is something our farm customers should be aware of, even as our retailers await delivery of products slowed down by supply chain disruptions. The CN 2023–24 Winter Plan Tracy Robinson, the Chief Executive Officer at CN, is certainly aware of all of the factors that work with and against her company. “Winter conditions bring unique challenges to every part of the supply chain, from production to market,” she explained. “CN’s Winter Plan seeks to anticipate those challenges, mitigate their impact, and facilitate quick recovery.” Robinson continued: “But the resiliency and reliability of Canada’s end-to-end supply chain require us all to work together—coordinating our planning and aligning our execution. The Canadian economy, our customers, and Canada’s position as a reliable trading partner need and expect this level of collaboration.” Not just focusing on going from Point A to Point B, Robinson acknowledges that from Point B, delivered products will often continue to Points C through Z and to partners in the global community. It’s for that reason that she is keenly aware that the performance of CN (and the CPKC) plays a huge role in how Canada is perceived on the global stage—reliable in delivering products on time. According to Robinson, CN’s Winter Plan focuses on working safely—that’s every company in the 21st century stating that—collaborating to meet the demands of customers, improving network performance, and enhancing network resiliency. It seems to us that it’s a rewording of what they usually do, which is fine. Some of the highlights of the 2023–2024 Winter Plan include: • Enhancing the scheduled operating plan. The operating plan that the railroad launched in 2022 delivered, according to CN, the best railcar velocity since 2016, as well as “strong, consistent traffic movement.” The company expects further enhancements to the plan and will deliver incre- mental improvements; • Locomotive initiatives: The addition of 57 high-horsepower locomotives purchased in October 2022, along with the modernization of 60 DC-traction locomotives, and CN’s loco- motive reliability initiative are expected to sup- port a more reliable and more fuel- and carbon- efficient fleet. This magazine previously discussed CN’s modernization of the Dash-9 locomotives, bringing CN’s modernized fleet to a total of 110 locomotives; • Rolling stock acquisition: CN added 800 new WINTER PLANS
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