CEO PERSPECTIVE: The Industry Must Collaborate as a Single Supply Chain

Written by Tracy Robinson, President and CEO, CN

Tracy Robinson, President and CEO, CN

As part of a special series in Railway Age’s April 2023 issue, 13 chief executives of leading North American companies answer the single-most critical question: What is the biggest challenge facing the North American rail industry? Tracy Robinson of CN is the second to share her perspective.

Rail built our continent. It has been at the heart of settling far-off regions and moving goods since the time of the steam engine. It has always been and will always be a critical component of our continent’s economic infrastructure. We have evolved greatly since the days of the steam engine and our operations have followed suit. Today, we are complex and interwoven in elaborate relationships and competing globally.

However, our modern industry faces significant challenges that threaten our global competitiveness. Chief among these challenges is our ability to collaborate as a single supply chain. As the resiliency of our supply chain continues to be tested, the absence of collaboration may hamper North America’s ability to keep competing globally in the years to come. We believe that this challenge also creates an opportunity where all actors of the supply chain can win together.

We also believe that this can be an area for governments to use their position as arbitrators and regulators for positive influence. By leveraging their role, governments can encourage collaboration by bringing the right actors to the table. They can also help coordinate investments in the North American supply chain to ensure its long-term competitiveness by identifying systemic bottlenecks and targeting them for necessary upgrades. This collaboration amongst supply chain actors will encourage further coordination amongst partners, break down silos and improve fluidity, ensuring that goods and people can move quickly and efficiently.

The entire supply chain and customers would benefit from this cooperative approach. Sharing data and increased transparency would allow different parts of the supply chain to anticipate and correct any issues that may arise as we would reduce or eliminate unnecessary delays and create an environment where everyone wins.

As an industry, we have demonstrated that you can have some of the most efficient railways in the world, providing top-notch service while leading the way in innovation. We have even been able to reduce our emissions and improve our fuel consumption, and deploy new and innovative technology while moving goods faster than ever before. Canada in particular has also achieved these feats while offering some of the best freight rates in the world.

While the challenge of global competitiveness is not new, the ever more complex evolution and shifting of trade patterns will require a new approach. Promoting and enabling collaboration amongst supply chain partners can provide a clear path forward for the rail industry to continue investing and serving as a critical component of our continent’s economic infrastructure.

We want to work with our partners to enable the next level of growth. Policymakers must recognize the strategic importance of the rail industry as a means for our continent to compete globally and take action to ensure its long-term success for the North American economy and the millions of people who rely on it every day. At CN, our commitment will continue to be pushing for collaboration while once again striving to provide the best rail service and leading the way in innovation and sustainability.