Table of Contents
1. Introduction
• Background – History and Overview of Industry
• History and Overview of Canadian Pacific Railway
• History and Overview of Canadian National Railway
2. GAAP methods validation 3. Financial Analysis
• Canadian Pacific Railway
• Canadian National Railway
4. Comparison of Canadian Pacific Railway and Canadian National Railway through Ratio Analysis
• Gross margin
• Net income margin,
• Return on assets
• Return on equity
• P/E Ratio
5. Recommendation
6. Appendices
• Income statements
• Balance sheet
• Cash flow Statement
1. Introduction
A. Railway Industry in North America
Rail industry is profitable and growing industry. In North America, five companies are dominant and
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The company was privatized by government in 1995 and after that it acquired Illinois Central Railroad and Wisconsin Central Transportation. CNR is freight railway mainly but it was in passenger service business until 1978.
It transports various goods across the Canada, US and between US-Canada border like-petroleum and chemicals, metals and minerals, forest products, coal, grains and fertilizers, intermodal commodity, the automotive commodity.CNR crosses the continent connecting ports on the Atlantic, Pacific and Gulf coasts and links customers to all three NAFTA nations.
Following are subsidiaries of CNR—
1. Grand Trunk Corporation
2. Grand Trunk Western Railroad Company (“GTW”)
3. Illinois Central Corporation (“IC”)
4. Illinois Central Railroad Company (“ICRR”)
5. Wisconsin Central Transportation Corporation (“WC”)
6. Wisconsin Central Ltd
2. GAAP Methods Validation
A. Canadian Pacific Railway
PricewaterhouseCoopers LLP were the sole external auditors of CPR since Canadian Pacific Railway Limited was incorporated in 2001.In Nov 2010, the board committee with board’s approval decided to go through competitive bidding process to select auditing firm. PricewaterhouseCoopers LLP and Deloitte & Touche LLP were invited for bidding and after evaluation by audit and management committee recommended appointment of Deloitte & Touche LLP as their new auditors. The
We are committed to investing for the future, which includes our infrastructure, facilities, rolling assets such as locomotives and rail cars, and technology. We invest about $1 billion every year to maintain and upgrade our infrastructure, to ensure safe, reliable service for our customers.” (Sanborn, 2016, p. 1) Ms. Sanborn is very right on this subject as long as money is being allocated properly. Utilizing lean thinking techniques and implanting a Six Sigma program where the upper management is committed to the goal of constant improvement, waste reduction, and total quality management is a necessity. (Wisner, Tan & Leong, 2012) One of the processes that needs reassessed is that of track maintenance. Normally a large crew with many pieces of equipment will work replacing railroad ties, ballast (rock) and sometimes the rail itself. The difficult part is that trains may need to run on alternate schedules or be rerouted a whole different direction for sometimes several weeks while track work is being done. Having the latest technology in equipment coupled with highly trained employees can make a huge difference in productivity. A second aspect is a refocus on the customer. This means delivering rail cars when there needed, and damage free. Talking with the customer to
The high-speed train in Japan has shown researchers in the United States what the future holds if Texas develops high-speed train travel. The quicker train will allow tourists to travel between different cities without having to get on a plane to travel and without the hassle of dealing with airport security, parking, luggage transport, and lengthy layovers. High-speed travel on the Texas Central Railway system will support the economy as it has in Japan (Texas Central). The two cities can profit from the profit that is brought in from the development of the Texas Central Railway
Knowing this stock companies started investing in the railway to eventually make eventually make more
Canada holds productivity through its natural beauty. As a result, the economy of Canada is a major producer in a variety of items exported to the world. This couldn’t be done without its resources that expand throughout the country. Some global economy advantages aided by Canada include its staple exports of tree-related products such as paper and timber from abundant forests. The immense bodies of water adjacent with Canada provide for a prominent commercial fishing industry that catches popular and plentiful fish such as salmon and cod exported to the world. The hydroelectricity produced by its rivers help collect substantial amounts of energy to provide for the world supply. Along with hydroelectricity, Canada’s natural coasts and waterways aid for shipping ports to major
British Columbia, Canada exports a lot of products from the west coast (Agrifoods, 2015). China receives an average of $71.3 million worth of export products from British Columbia. Nepal is located right beside China, so once the product has reached China the majority of the journey is over (Agrifoods, 2015). Nepal’s main transport strategy is using highways to bring goods to markets. Trucks from China bring the products to Nepal, where smaller transport services take the goods to local markets (Woodburn et al., 2008). Considering the Trans-Asian railway network does not run through Nepal, trucking goods on highways is the only option (Woodburn et al., 2008). Cattle farmers generally live in the Central Terai region of Nepal, and would travel to a local market in order to purchase the resuscitator (Chapagain, 2015). In order for products to be shipped from Canada, they must be reviewed by Border Services (Canadian Border Services Agency, 2015). When transporting freight by ship, a report of exporting goods is required 48 hours prior to the loading time. This is reported at any export office along the sea borders or inland. Once the products have been shipped, a Certificate of Origin is due to the company that receives the products (Canadian Border Services Agency, 2015). Carrier codes also confirm legal custody of the vessel (Shipping Federation, 2015). The Canadian government does provide financial assistance for
The Canadian National Railways is a part of the Railway Industry and it is the most popular and longest system all over North America. It is the only “transcontinental railway” company that Canada has which crosses the Atlantic Coast in Nova Scotia to the Pacific Coast in British Columbia. The CN Railway system provides transportation services to coal, automobiles, grain, beverages, lumber and metal products. They use railway containers which is a cost-effective method that helps easily transport Canadian and American goods. CN Railway’s profit increases every year due to the vast amount of items it transports and this causes multiple consumers and businesses to be involved with the CN Railway Company. (Canadian National, 2015).
American airline industry is steadily growing at an extremely strong rate. This growth comes with a number economic and social advantage. This contributes a great deal to the international inventory. The US airline industry is a major economic aspect in both the outcome on other related industries like tourism and manufacturing of aircraft and its own terms of operation. The airline industry is receiving massive media attention unlike other industries through participating and making of government policies. As Hoffman and Bateson (2011) show the major competitors include Southwest Airlines, Delta Airline, and United Airline.
This Railroad was sponsored by the Government but there is another railroad called the “Empire Builder” but that is a whole different story. In 1849 people from all over the world came for the gold discovery in California. Eventually people, who came, gave up there
A major part of Canadian history is about railways, they seemed to transform Canadian societies into something bigger and better. Before railways Canada had been faced with a problem in the winter which was the lack of transportation, railways seemed to transform Canada by providing jobs, illuminating violence, and creating international connections.
The Canadian Pacific Railway (CPR), officially founded in 1881, marked a significant milestone in Canadian history. At the time it was legitimately formed, no one could have ever imagined the evolution and progression that it has made to present day. Over the past 150 years, the CPR has underwent and endured its fair share of sacrifices. However, there are countless reasons why the CPR should be viewed, remembered, and revered as a successful project. Throughout this essay, numerous topics, from the origins of the railway’s formation to its relevance and continued influence during present day, will be illustrated and examined in great detail, as well as why the project itself was an overall success.
1. Think about size, growth, locational aspects and segmentation 2. Market Structure 3. Performance metrics used 4. Trends
Today I look back at my home. Or to put it correctly, what used to be my home. The Americans and their hired Chinese and Irish men are, as we speak, running the tracks down that divide our land. Not theirs, but our land. These people are laying down tracks separating our lives as we speak. Our entire way of operating will be destroyed. And it doesn’t seem like it only affected their side, but our American side as well. They can now possibly be viewed as a greedy nation for the ill-treatment of all those immigrants. It seems the idea of The Transcontinental Railroad has more downs that ups; injuring it workers, taking down Native American Homes, and showing how
A two tiered deal was made by CSX because of the heavy regulation Pennsylvania has for mergers and to provide financial considerations for Conrail’s shareholders.
In an industry beset by limited options to consolidate domestic rail traffic, CSX looked at Conrail as an avenue to increase market share and gain access to the North East rail network. With air travel, road travel and trucking taking an increasing share, significant revenue growth became difficult. As Conrail became profitable, Congress explored ways of privatizing it, giving CSX an opportunity to acquire Conrail. Though Conrail suffered from performance inefficiencies it had certain strengths relative to CSX and Norfolk with respect to highest revenue per mile of track operated, per carload originated etc. Conrail with operating revenue of $3,686
railroad has allowed the rail industry to provide a more tailored service to its customers. It has also