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Saturday, September 27, 2008

Customers Who Aren't Getting Railed

With the current economic upheaval many industries who have been feeling the pinch have begun a series of predatory pricing campaigns, but not the Canadian National Railroad Company. In fact, CFO Claude Mongeau was quoted as saying, "I don't see things changing. They might be slowing a little bit in a tougher economic environment, but I don't see things going back to the old days.
Mongeau went on to say, "We have years in front of us in which railroads should hopefully be able to price in line with inflation and then some, to the extent that they add value to the supply chain of their customers."
In these tough economic times, it is good to see sanity and a certain distancing from corporate greed. Currently rail is still used predominantly in the steel and fabrications industries as well as timber and building supplies in the Northwest. It will be interesting to see just how far many businesses are willing to go to help out their customers and clients in these difficult financial times.