freight volumes are expected to surge even higher as shippers move a top five all-time grain harvest to the coast for export.
This year's Western Canada grain crop is expected to be 75.2 million tonnes. The five-year average is seven per cent above that, and last year's crop was down 36 percent.
There was an issue with signing you up. Try again.
By clicking on the sign up button you consent to receive the above newsletter from Postmedia Network Inc. You may unsubscribe any time by clicking on the unsubscribe link at the bottom of our emails. Postmedia Network Inc. | 365 Bloor Street East, Toronto, Ontario, M4W 3L4 | 416-383-2300
Grain exporters want to get as much of that crop as they can onto trains and into world markets to take advantage of demand when food prices are rising faster than they have in decades.
The shippers were not happy with the number of grain cars they were getting from the two main railways.
According to reports released by the Ag Transport Coalition, railways weren't able to provide most of the grain cars requested. 38 per cent of orders were unfilled, which was worse than the average.
In the latest report for the second week of October, the fill rates were 81 per cent for the two companies.
The railway has hired 1,500 conductors since the beginning of the year and hit an all-time record of 6,900 grain cars weekly on two separate weeks.
There is a bumper crop. There is a lot of expectation. He said that they would meet expectations. We have never been in better shape.
In the third quarter, revenues at the second-largest railway in Canada rose by 19 percent to $2.31 billion. The jump was partly due to a 31 per cent increase in the volume of potash moved on the railway, as a result of a surge in global demand due to boycotts on Russianfertilizer.
The harvest demand only started in the last few weeks of the third quarter, which ended on Sept. 30.
As we move into the fourth quarter, volumes have quickly increased. 5,900 high-capacity grain cars are expected to be added to the fleet by the end of the year. The last of them will be received later this year.
Walter Spracklin of Royal Bank of Canada said that the railway posted a 15 per cent increase in profits for the quarter, with core adjusted earnings per share of $1.01 in line with forecasts.
He wrote in a note to investors that the upbeat tone and strong guidance into Q4 was the key from the call.
A decision on whether or not to approve the acquisition of Kansas City Southern by Canadian Pacific will be made early next year.
The hearings were held at the Surface Transportation Board in Washington. I am convinced that the benefits of the merger will be great.
The email address is jedmiston@nationalpost.com.
In-depth discussions and insights into the latest in Canadian business can be found on Down to Business. The latest episode can be found below.
All Rights Reserved © 2024
