It seems that Canada’s two national railways keep on producing never-ending record performances. Although both carriers expressed caution about the immediate future, both produced very respectable third quarter results.
During the quarter, CN’s revenues increased by 3.9 per cent to $3.8 billion. Operating expenses, as a percentage of revenues, decreased from 59.5 per cent to 57.9 per cent, as a result of which operating income rose by 8.1 per cent to $1.6 billion. Cash flow from operations increased to $1.69 billion from $1.56 billion, but “free” cash flow, the amount remaining from operating cash flow after subtracting net investments made during the quarter and dividends paid to investors, declined to $315 million from $508 million, because of unusually large capital expenditures. From Jan 1 to Sept 30, CN spent $1.26 billion repurchasing its own shares, a reduction from the $1.52 billion spent during the same period in 2018, and paid $1.16 billion in dividends, an increase of $159 million over 2018. (more…)
DHL Express announced its latest gateway expansion in Canada: a new $100 million facility at Hamilton’s John C. Munro International Airport. This new facility will replace its existing one to meet double-digit growth in shipment volumes. “Hamilton International Airport offers us the benefits that we need to meet our growing demands in handling capacity,” said Andrew Williams, CEO of DHL Express Canada. “With 24-hour landing capability, dedicated onsite Canada Border Services Agency representation and the ability to grow in the future with a partner positioned to become the cargo hub of Ontario, we know this is the best decision to continue leading the market.” (more…)
During the month of September, Seaway volumes were down 18 per cent from year-ago levels, to 3,991 million tonnes. From March 22 to September 30, cargo shipments totaled 24.8 million tonnes, down 6 per cent from 2018. All cargo categories showed lower volumes, except dry bulk, which was up by 7.3 per cent on a year-to-date basis. The figures reflect a combination of factors including the decrease in U.S. grain exports from earlier in the spring and current delays in the Canadian harvest due to the wet field conditions.
Slow harvest progress in Western Canada is delaying the movement of grain to prairie elevators and export terminals on the West Coast and at Thunder Bay. With harvests estimated to be 20 to 30 per cent behind where they would be normally, it is expected there will be more exports late this fall and into December. (more…)
By Tom Peters
While there have been no shovels put into the ground yet, developers of the proposed marine container terminals for the Port of Sydney, Cape Breton (Novaporte) and at Melford on the Strait of Canso, continue to work behind the scenes to advance their projects. In both cases, proponents say all they need to start actual construction is to have a major shipping line sign a long-term contract that would guarantee a minimum number of containers to move over the terminals annually. (more…)
By Keith Norbury
AltaGas Ltd.’s Ridley Island Propane Export Terminal — the first such facility in Canada — is the latest addition to the port of Prince Rupert. The terminal, called RIPET for short, celebrated the export of its first shipment, bound for Asia, on May 23. “The completion of this game-changing project and the shipment of our first cargo are historic milestones for AltaGas, as well as for our project partners, customers, local indigenous peoples, surrounding communities, and western Canada’s upstream energy sector,” said Randy Crawford, President and Chief Executive Officer of AltaGas. “With RIPET now operational, we can offer producers a uniquely complete solution for their propane, providing premium netbacks and market optionality, while also positioning AltaGas to profitably grow our Midstream footprint — a true win-win for AltaGas and our customers.” (more…)
Next Day Air volume is growing rapidly in the industry and UPS is said to be winning a larger share of this expanding market. Further, healthcare, ecommerce and small business customers are demanding faster delivery times around the globe. In response, UPS Airlines is growing its air network, including its support structure at its home base in Louisville, Ky. (more…)