Canadian National Railway is accused of poor service to area loggers, mills

[wcfan4ever]

I read this on the WCInfo YahooGroup and thought it was very interesting indeed. The following story was in the Wednesday Spooner, WI "Spooner Advate"
about the CN Railroad. Very interesting indeed.

Story by Frank Zufall, Publisher Spooner Advate:

Several times a day a Canadian National train several blocks
long, often carrying Canadian wood products, passes through Washburn
County at 60 mph headed for the interior of America.
For many in the logging industry of northern Wisconsin, the site
of a Canadian train rushing through the heartland of America with
Canadian products causes their blood to curl and their dander to
rise to new heights.
But loggers says it is not so much the foreign products that gets
them on edge as it is the foreign railway, which they say is
emphasizing Canadian products and long-distance shipping into North
America and de-emphasizing service to area American loggers and
their products, a trend some loggers say could not end.
CN's US Governmental Affairs Respresentative Karen Phillips said
loading points in Washburn County and across northern Wisconsin have
closed because of lock of volume.
Loggers, collectively, refute the reasons for the closure and
will often respond that closed loading sites, such as at Chittamo,
were convient and well used by area loggers.
The real issues, say area loggers, is that CN does not seem to be
interested in serving area loggers.
They say that ever since CN purchased the Wisconsin Central rail
lines about 2 1/2 years ago, there has been a steady decline in
service.
Max Ericson of Minong has been in the logging industry for more
than 30 years and worked with the railroads for his entire career.
Erickson said the service from CN is the worst he has ever
experienced, and the primary problem, according to Erickson, is that
CN fails to send cars to loading sites when they are needed.
Erickson said the problem was acute at one point last spring when
he ordered 48 cars to ship 1,500 cords of pine and the cars failed
to appear.
"I have had to leave 100,000 worth of wood on the ground because
the railroad couldn't move it," said Erickson. "How can a small
logger have 100,000 in inventory?"
Several loggers said in their industry they have to pay for the
wood up front, so it is critical to move the product in a timely
manner to keep cash flow in place for a three week turnaround before
he sees any money, so it is critical to get the wood to the mill as
soon as possible.
"Most business work on a 30 day system," he said. "You have 30
days to pay off the vendor, but in our business you have to pay 90
percent up front, and when you are talking a big sales, you are
talking about 100,000 to 300,000 in wood."
Louis D'Jock of Siren is another logger who is frustrated with
obtaining railcars from the CN.
"I had an order for cars for shipping that took me 1 1/2 months
before I got cars," and D'Jock adding "I don't think CN has an
interest in loggers and in the economics of Northwestern Wisconsin.
CN has shown no effect to help loggers at all".
Stan Hersey of the town of Bass Lake in Sawyer County said he
gets the Mosinee Paper cars from CN he needs, but he said there is
often a disconnection between the information he recieves from what
actually occurs.
"We get a call that a car is in such place, and then we find out
that it is not there," he said.
Hersey said he has sent his trucks to load railcars only to find
there are no railcars to load, costing him time and money.
He said now he always confirms what CN tells him before he sends
trucks to a loading site.
Hersey said the last month he has had an ongoing problem with CN
over a railcar that was supposed to have been sent straight to
Bemidji,Minn, for the Potlach Mill instead was sent to Stevens Point
and then to New Brighton,Minn for several weeks.
Hersey said he could not understand why the car had been sent to
New Brighton, but once there, he was told the cars had been
improperly loaded and would not be forwarded.
Hersey said he had a number of conversations with CN, even
visited the car in New Brighton, only to find the company had sent
the car back to Stevens Point.
"I said this is nuts," he noted.
Mills:
Most paper mills contracted for this article would not issue an
offical response when questtioned about whether they had noticed a
decrease in service.
However, Tim Laatsch, senior vice president of communications for
Stora Enso North America, said CN rail service had become an
issue. "In talking with our persons, we have had some service
difficulty in moving product from that area, Northern Wisconsin,
Michigan, and Minnesota," said Laatsch.
He said the company has seen an increase in problems, such as
errors in the number of cars and cars being stranded on the line,
since the last quarter of 2001.
He added, "The change in service has been escalating over the
last two years."
Louisiana Pacific Corp, Gwinn, Mich, a major buyer of pulp in the
area, refused to comment directly on its experiences with CN but did
reiterate the importance of rail in an official statement: " All
wood deliveries from northwest Wisconsin are moved via the railroad
as trucking costs are prohibitive for the distances involved to
deliver wood to the mill. Reliable, timely and constant rail
service is and will be absolutely necessary to ensure continued wood
procurement for the Gwinn sawmill from northwest Wisconsin."
Ericson and Good emphasize the importance of rail even futher.
"We need rail service because we can't compete in the world
markets using trucks because the cost is too great and there not
here to assure that we have a job," said Good.
Hersey said he could probably survive without rail but it would
be difficult.
Good noted that every railcar takes approximatley three truck
loads of wood, and if the rail service is not there, the public is
going to see more trucks on the roads.
"Truck traffic will be triple without railroads," he said.
Governmental Pressure:
Private loggers and mills have reportedly made numerous attempts
to iron out difficulties with CN to little apparent avail.
Now pressure is coming from political sides to reach a resolution
with CN.
In January, Washburn County Chairman Thomas Mackie, along with
eight municipalities in Wisconsin, sent a letter to the Surface
Transportation Board in Washington, DC in opposition to allowing CN
to purchase three more American railways until CN improves service
in Wisconsin manurfacturing industries in northern Wisconsin,
Washburn County leaders and other leaders of northern Wisconsin will
oppose any expansion of a system that has not kept up the standard
pf the Wisconsin Central Railroad in service to our industries."
In response to Wisconsin shipper complaints, CN wrote to the
Surface Transportation board in part, "The letters do not comport
with the far more positive comments CN has recieved from the most of
it customers about the quality of the post transaction service
provided by CN on the Wisconsin Central.
"Nevertheless,CN is always concerned when its customers are not
satisfied with its service and is making a special effort to gain a
greater understanding of the concerns suggested by these letters.
" CN will endeavor to ensure that legitimate concerns reflected
in these letters are appropriately addressed," read CN response.
Complaints about CN have made their way to the halls of congress.
John Berard, spokesperson for Minneasota Congressman Jim
Oberstar, the leading Democrat on the transportation committee, said
Oberstar has heard numerous complaints over CN's service to
customers in Minnesota, Wisconsin, and Michigan.
Berard said Oberstar is working with Dave Obey on the issue.
If CN is going to operate through the right of way through
Wisconsin, they also have a responsibility," said Berard. "When
they were allowed to merge with the railroads that created their
American network, that was approved on the basis that there would be
service to these towns and to these companies. That's where our
issue is: How can we get better service or get service period?"

[zardoz]

When the WC was still an entity, I rarely heard of crews time expiring enroute to destination. When it did occur, it was usually due to some event outside the railraods control.

Now when I listen to the CN radio traffic, it seems as though it is now a common occurrence. I wonder if this is due to either:
a. Lousy management
b. Increased operating territory (longer runs)
c. Employee apathy ("the rr doesn't care, why should we")
d. Excessive traffic
e. Deliberate attempt by CN to drive off the smaller shippers

Just as WC stood for "We Can" or "We Care", perhaps CN stands for "Can Not", or "Care Not".

[Anonymous]

zardoz
CN has the worst Mangement under Hunter (NUM SKULL) HARRISON I think Paul Tellier should of never went to Bombredier also CN dosent care some shippers complaine about their schuding railroad and trying to get rite of small shippers I wi***hem luck against NUMSKULL HARRISON AND COMPANY

[PNWRMNM]

Doggy,

Does any railroad in North America have competent management in your humble opinion?

Mac

[CliqueofOne]

I don't know anything about any other railway but the Canadian National Railways. And since I'm just shy of 34 years with the company on the Signal Department you can take my word for it. It's become a living death with not much life left. If it wasn't for the top notch rank and file employees to salvage Hillbilly's incompetent misdeeds the CNR would be in far worse shape than it is now. When Big Business controls the news media the general public is fed pablum that unfortunately they believe. But one thing H#10066; found out the hard way. Canadians love the internet and we at CN are getting through to many by that means. And they are shocked when they learn the truth about just how badly this misplaced American is treating Canadians. Read more at this site. http://www.trainscan.com/news/scan/s0403/index.html#WARM Gene B. Signal Department. Canadian National Railways.

[zardoz]

Didn't trains magazine do a cover-page/main article recently about CN being the best railroad in the world?

Either Trains was as mislead as the public regarding CN's operations, or CN has taken a major stride towards an "uncontrolled flight into terrain".