The Canadian National Railroad (CN) has sent their crews rolling through communities without access to essential safety documents, ranging from operating rulebooks to their Emergency Response Guides (ERGs). The railroad’s electronic document system recently failed without a meaningful backup, placing everyone on or near their trains at risk.  

This situation raises serious safety concerns, especially as CN’s freight trains travel extensively across both the U.S. and Canada. 

Help SMART-TD track the impact of this problem. If you work for CN, fill out the safety condition report for every incident. The form is available on the SMART App and SMART-TD’s websites. 

CN railroader and Michigan’s Alternate State Safety and Legislative Director Eric Stanger told SMART News, “The idea that there is not an adequate contingency plan in place for this is mind blowing.” Brother Stanger went on to say, “In any other circumstance, CN would be handing out discipline for not having these documents, but because it’s on them, they are insisting the workforce violate their own operating rules.” 

App outage leads to risky business 

CN’s Comply365 app, which provides train crews with electronic access to rulebooks, timetables, federally mandated ERGs, track charts and other vital information, crashed this week. 

The app’s sudden loss stemmed from a systemwide software update gone wrong, leaving crews without critical resources as they navigate complex rail routes and handle hazardous materials from Canada to the Gulf Coast. 

Paper backups still needed, according to feds 

A recent ruling from the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration (PHMSA) acknowledge that electronic systems can fail.  

They ruled that readily available physical copies of hazardous materials paperwork are required. Their decision is grounded in common sense: computers crash, our trains should not.

CN got an exception that’s unsafe for our members 

PHMSA granted CN a special permit in 2020 allowing them to use an entirely paperless system to provide hazmat data to their crews. This permit required a “reliable and readily available backup plan.” The current scenario, with Comply365 being unavailable in some areas for over a week, proves that those requirements were not met by CN. They did NOT hold up its end of the agreement, and SMART-TD members are at risk.  

Many of our CN brothers and sisters have not been able to access the backup software, known as Content Locker. After long hold times with the IT desk, many of them have not been given any solutions to the problems with their devices.  

Safe operations are further hampered because, while trains run 24/7, CN technical support closes from midnight through 6 a.m. daily.  

Backup failure causes problems 

Even when it works, Content Locker is out of date. The version of the ERG available on Content Locker is from 2020. Under normal circumstances, this would be disqualifying for any Class I railroad.  

Providing printed copies of the 2024 ERG for their employees, at a whopping $0.05 per page, was considered by the railroad to be too costly an investment in employee safety.  

PHMSA waiver nears its end date 

This is not the best time for CN to highlight that the system they’ve taken on a trial run is down or to try to obtain thousands of printed ERGs. Their special permit from PHMSA is currently up for renewal! 

So, for now, CN has every crew on their system running with outdated emergency response guides as their only available resource. Of course, that’s WHEN they’re available.  

Workers run with old info, deal with tech crashes 

Many of the CN members of SMART-TD report that they are also working with outdated timetables, and some are running without their daily bulletins. These crews must rely on conversations with other crew members to learn about temporary speed restrictions, work authorities, and other critical information that keeps them safe and out of trouble while navigating their day-to-day activities.  

Content Locker occasionally freezes their “Zebra” tablets, the technology platform provided by the railroad. The conductor/engineer must reboot and reconfigure the program each time to regain access to timely safety information.  

For anyone who has ever been on a 15,000-foot mixed freight train going 50 mph, you need answers to help keep your train on the rails and in compliance. Every document is essential, formally required, and crews do not have time to leisurely shut down and restart troubled tech when they need the information they contain.  

A carrier without a plan 

As SMART News found out in conversations with CN members, this is not the first time CN has had a systemwide outage of Content365. In 2022, the system was down for approximately three days. Despite this prior outage, CN hasn’t come up with a better solution in two years. This is unacceptable for worker and public safety. 

It could have been worse 

SMART News was able to contact CN members in multiple general committees, and we are happy to report that not all of these territories have had the same level of complications from the outage.  

General Chairperson Kenneth Flashberger of GCA-987 (Wisconsin Central) reported that his crews reported very little disruption in their service. In his territory, the outage inconvenienced crews for less than a day. The workaround provided by CN was successful, and crews consistently have had access to the data they needed via Content Locker.  

The outage affects safe operations 

By prioritizing electronic solutions over reliable, physical copies of crucial documents, CN has put its train crews and the public at risk. The bottom line is that CN failed to plan, and now SMART-TD’s men and women are at risk because of it.  

Any corporation willing to skirt federally mandated, common-sense safety protocols to avoid the cost of printing backup copies of timetables, rulebooks, track charts, and ERGs is not worthy of claiming “safety is a core value.” 


Net Earnings: Decreased to $1.131 billion from $1.338 billion.
Revenue: Decreased to $4.602 billion from $5.893 billion.
Operating Income: Decreased to $1.73 billion from $2.007 billion.
Operating Expenses:Decreased to $2.872 billion from $3.886 billion.
Operating Ratio: Improved by 3.7 points to 61.1%.
Link to read BNSF’s full earnings report.
 

Net Earnings: Decreased to C$908 million from C$1.25 billion.
Earnings Per Share: Diluted earnings per share decreased 59% to C$0.77 from C$1.88 and adjusted diluted EPS decreased 26% to C$1.28 from C$1.73.
Revenue: Decreased 19% to C$3.21 billion from C$3.96 billion.
Operating Income: Decreased 53% to C$785 million from C$1.27 billion.
Operating Expenses: Increased 6% to C$2.42 billion.
Operating Ratio: Declined by 18 points to 75.5%; adjusted operating ratio declined 2.9 points to 60.4% from 57.5%.
Link to read CN’s full earnings report.
 

Net Earnings: Decreased to C$635 million from C$724 million.
Earnings Per Share: Diluted earnings per share decreased 10% to $4.66; adjusted diluted earnings per share decreased 5% to $4.30.
Revenue: Decreased 9% to C$1.79 billion from C$1.98 billion.
Operating Income: Decreased to C$770 million from C$822 million.
Operating Expenses: Decreased to C$1.02 billion from C$1.16 billion.
Operating Ratio: Improved 140 basis points to 57%.
Link to read CP’s full earnings report.
 

Net Earnings: Decreased to $499 million from $870 million.
Earnings Per Share: Decreased to $0.65 from $1.08.
Revenue: Decreased 26% to $2.26 billion from $3.06 billion.
Operating Income: Decreased 37% to $828 million from $1.31 billion.
Operating Expenses: Decreased 19% to $1.43 billion from $1.76 billion.
Operating Ratio: Declined 5.9 points to 63.3%.
Link to read CSX’s full earnings report.
 

Net Earnings: Decreased to $109.7 million from $128.7 million.
Earnings Per Share: Decreased to $1.16 per diluted share from $1.28.
Revenue: Decreased to $547.9 million from $714 million.
Operating Income: Decreased to $180.4 million from $208 million.
Operating Expenses: Decreased to $367.5 million from $506 million.
Operating Ratio: Improved 3.8 points to 67.1% from 70.9%; adjusted operating ratio worsened 1.5 points to 65.2% from 63.7%.
Link to read KCS’s full earnings report.
 

Net Earnings: Decreased to $392 million from $722 million.
Earnings Per Share: Diluted earnings per share decreased to $1.53 from $2.70.
Revenue: Decreased 29% to $2.1 billion from $2.9 billion.
Operating Income: Decreased to $610 million from $1.1 billion.
Operating Expenses: Decreased 21% to $1.5 billion from $1.9 billion.
Operating Ratio: Worsened to 70.7% from 63.6%.
Link to read NS’s full earnings report.
 

Net Earnings: Decreased to $1.13 billion from $1.57 billion.
Earnings Per Share: Decreased to $1.67 per diluted share from $2.22 per diluted share.
Revenue: Decreased 24% to $4.2 billion from $5.6 billion.
Operating Income: Decreased 28% to $1.13 billion from $1.57 billion.
Operating Expenses: Decreased 22% to $2.59 billion from $3.34 billion.
Operating Ratio: Worsened 1.4 points to 61.0% from 59.6%.
Link to read UP’s full earnings report.
 


Notes: 

  • BNSF’s earnings report had not been released as of July 29, 2020. This post will be updated when the information becomes available.
  • Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.
  • All comparisons are made to 2019’s second-quarter results for each railroad.
  • All figures for CN & CP are in Canadian currency, except for earnings per share for CP

Executives from both Canadian National (CN) and Canadian Pacific (CP) said that they anticipate a boost in crude-by-rail traffic come springtime, Trains Magazine reports.
Both CN Chief Financial Officer Ghislain Houle and CP Chief Marketing Officer John Brooks presented Nov. 13 at the Scotiabank Transportation & Industrials Conference in Toronto and said their railroads would be readying for increased oil traffic when the spring arrives and the country’s grain shipping rail traffic winds down, the magazine reported.
A lack of pipeline capacity is restricting the amount of oil that can flow, and crude-by-rail traffic has ramped up to a level approaching the country’s 2014 peak of a rate of 140,000 carloads annually, the magazine reported.
Data from the Association of American Railroads show that petroleum product shipments are up by more than 30 percent for both Canadian Class I carriers.
The full article is available on the Trains Magazine website (subscription required).

TWO  HARBORS, Minn. – Authorities are investigating what caused a train to derail just south of Two Harbors, Minn., Thursday (Dec. 5) afternoon.

The Lake County Sheriff’s Office, along with Two Harbors Police, the Minnesota DNR and rescue squads were called to the incident around 1:15 p.m.

Read the complete story at Northlands Newscenter.

This incident occurred despite prior notices from the SMART Transportation Division’s Minnesota State Legislative Board asking railroads operating in northern Minnesota to prepare for inclement weather.

According to reports from SMART TD local officers in Minnesota, Canadian National Railway has not reacted appropriately to the severe weather conditions, Minnesota State Legislative Director Phillip Qualy said.

Reportedly, CN had six runaways on Steelton Hill in the last 30 hours after nearly three feet of snow fell in northern Minnesota.

The board reports that CN has not flanged or winged hills properly, despite the availability maintenance-of-way crews on equipment, waiting for track time.

To view copies of SMART TD’s letters to CN, BNSF Railway, Canadian Pacific, Union Pacific and Red River Valley & Western Railroad regarding winter safety action plans, snow removal and maintenance of way, click Winter_Safety_Letters_MSLB_120213.

The board asks that local officers post copies of the letters on all on-property bulletin boards.

The board also asks that, as always, members report all unsafe conditions immediately, including switches, switch channels, walkways, roads, crew-change locations and industry tracks not cleared of snow, sanded, salted or maintained.

CSX_logoCSX Corporation announced Oct. 15 that they had net earnings of $463 million or $.046 per share for the third quarter of 2013. Earnings for the same quarter last year were $455 million or $.44 per share. Earnings are up by $8 million over last year, but down $72 million from the second quarter of this year.

The railroad reported revenues of $3 billion for the third quarter that resulted from higher volumes and pricing gains in merchandise and intermodal. CSX reports an operating income of $854 million and an operating ratio of 71.5 percent.

“CSX now expects full-year 2013 earnings-per-share to be slightly up from 2012 levels. In addition, the company remains on target to achieve its goal of sustaining a high-60s operating ratio by 2015, while remaining focused on attaining a mid-60s operating ratio longer-term,” CSX said.

Operating ratio is a railroad’s operating expenses expressed as a percentage of operating revenue, and is considered by economists to be the basic measure of carrier profitability. The lower the operating ratio, the more efficient the railroad.

 

union_pacific_logoUnion Pacific reports best-ever quarterly results for the third quarter of 2013. The railroad reported a net income of $1.15 billion or $2.48 per diluted share for the third quarter. Last year’s figures for the same quarter were at $1 billion or $2.19 per diluted share.

Operating revenue for the railroad had a four percent increase to $5.6 billion over last year’s $5.3 billion. Union Pacific recorded an operating ratio of 64.8 percent, a best-ever quarterly record. Operating income totaled $1.96 billion, up 10 percent over last year for the same quarter.

“Union Pacific achieved all-time record financial results this quarter,” said Jack Koraleski, Union Pacific chief executive officer. “Despite the challenges of lower coal and grain volumes, in addition to disruptions caused by the Colorado flooding, we managed our network efficiently and continued to benefit from the strength of our diverse franchise. When combined with real core pricing and productivity gains, we more than offset flat volumes to generate a new, best-ever quarterly Operating Ratio of 64.8 percent.

“As we move through the fourth quarter, we continue to monitor the economic landscape. Supported by our diverse franchise, we remain agile and well positioned for economic recovery,” Koraleski added. “We’ll continue to focus on running a safe, efficient, and reliable network that generates greater value for both our customers and shareholders going forward.”

 

KCS_rail_logoKansas City Southern reports revenues of $622 million for the third quarter, an increase of eight percent over 2012’s third quarter and a three percent increase in carloads. With only $579 million in revenues for the second quarter of this year, KCS showed a large increase of $43 million from the second quarter to the third.

The railroad reports an operating income up 11 percent at $200 million and an operating ratio of 67.8 percent for the third quarter. Operating ratio improved over 2012 figures by 0.9 points.

Diluted earnings-per-share was up at $1.07 while KCS reported $0.82 for the same quarter last year. Adjusted diluted earnings-per-share showed an increase of 16 percent, coming in at $1.10 for the third quarter of 2013. Diluted earnings-per-share for the third quarter of 2012 were at $0.95.

“Looking ahead, we expect a strong end to the year benefited by growth in export grain shipments. We also look forward to long-term improvement in our operating ratio as we move forward with our plan to increase the percentage of equipment we own versus lease,” David L. Starling said, president and chief executive officer at KCS.

 

CN_red_logoCanadian National Railway announced a net income of C$724 million or C$1.67 per diluted share for the third quarter of 2013. The railway reported just C$664 million or C$1.52 per diluted share for the same quarter in 2012. CN is up just $7 million over last quarter.

The railroad reports a one-time expense of C$19 million (C$0.05 per diluted share) resulting from an income tax adjustment. Excluding this expense, earnings per share (EPS) saw an increase of 13 percent to C$1.72 from 2012’s EPS of C$1.52.

Revenues saw an eight percent increase to a quarterly record of C$2,698 million, which was driven by a four percent increase in revenue ton-miles, and a three percent increase in car loadings.

Operating income for the railroad also increased 10 percent to C$1,084 million and operating ratio also saw an improvement of 0.8 of a point to 59.8 percent.

“CN’s agenda of Operational and Service Excellence delivered outstanding financial results for the quarter. All our key operating metrics improved, service levels remained solid and we reached new levels of safety in our train operations,” President and Chief Executive Officer Claude Mongeau said. “With continued focus on supply chain collaboration and solid execution, the CN team is determined to grow its business safely and efficiently at a pace faster than the overall economy and to meet its full-year 2013 financial outlook.”

 

cp-logo-240Canadian Pacific Railway Limited revealed record quarterly earnings at C$324 million (a 45 percent increase) or C$1.84 per diluted share and its lowest operating ratio at 65.9 percent in the history of the company for the third quarter of 2013. Although a record for the third quarter, earnings for the second quarter of 2013 were higher by C$96 million. Adjusted net income, excluding a one-time tax item of C$7 million was C$331 million, an increase of 48 percent.

The company reports adjusted earnings per share (EPS) of C$1.88, a growth of 45 percent over the third quarter of 2012. Total revenues saw an increase of six percent to C$1.5 billion, while operating expenses saw a decrease of six percent down to C$1 billion.

Chief Executive Officer E. Hunter Harrison said, “By all standards, this was an outstanding quarter. The company’s focus on service execution while controlling costs is a testament to our team of dedicated, hardworking railroaders. We enter the fourth quarter with momentum and are well positioned for what I believe will be a record 2013.”

 

ns_LogoNorfolk Southern publicized its third quarter net income of $482 million, a 20 percent increase over the third quarter of 2012 today. The same quarter last year only saw a net income of $402 million. Net income was also up $17 million over the second quarter of this year.

Diluted earnings per share were at $1.53, up 23 percent over last year’s $1.24. Operating revenues for the railway were at $2.8 billion, five percent higher than the same quarter of 2012. Shipment volumes saw an increase of four percent.

Income garnered from railway operations was $849 million, up 16 percent. Operating ratio improved by three percentage points to 6
9.9 percent.

CEO Wick Moorman said, “Norfolk Southern delivered strong results, led by growth in our chemicals, metals/construction, intermodal, and automotive businesses, combined with ongoing productivity improvements. Even in the face of continuing weakness in the coal markets, our focus on service efficiency and velocity allowed us to provide superior performance for our customers and excellent results for our shareholders.”