Canadian Pacific Railway Ltd. unveiled details of its dramatically reorganized structure Wednesday, centralizing the railroad’s planning under new chief executive Hunter Harrison but also aiming to empower frontline workers to react more quickly to operational challenges and improve relations with its customers.
The unions representing CP’s workers, however, said they were still in the dark about where 4,500 job cuts, to come by 2016 under the plan, will fall.
After burning through his last set of aggressive objectives about two years ahead of schedule, Hunter Harrison said Canadian Pacific Railway Ltd. needs a new five-year plan.
“There’s a lot of runway left here,” Mr. Harrison, CP’s chief executive, said on a conference call Wednesday.
Canadian Pacific Railway Ltd. said Wednesday it had extended the contract of its chief executive, Hunter Harrison, by an additional year until 2017.
“When Hunter was brought in to lead the transformational change of this iconic company, the agreement was for four years, plus an option for an additional year,” said Gary Colter, CP’s recently-appointed chairman, in a statement.
TORONTO/CHICAGO — Veteran railroad boss Hunter Harrison has won over many critics since taking over as chief executive of Canadian Pacific Railway, but he still has unfinished business – creation of a consolidated North American railway – and he is running out of time to do it.
That might explain why CP, Canada’s No. 2 railway with extensive operations in the United States, and the No. 3 U.S. railway, CSX Corp, have been talking about combining, even though such a deal would face tough regulatory barriers and alarm customers.
When Hunter Harrison retired as CEO of Canadian National Railway Co. in 2009, he planned to return to his estate in Connecticut and take it easy, focusing on charitable work, his horse-breeding business, and maybe writing a book.
But some people just aren’t very good at taking it easy. Less than two years later, Mr. Harrison was tapped by activist investor Bill Ackman to lead CN’s chief competitor, Canadian Pacific Railway Ltd., and he gladly accepted.
Reduce operating ratio to mid-60s by midyear 2016
Reduce workforce by 23% by 2016 – about 4,500 positions
Strategic review of western portion of DM&E and D&H
Increase average train length and weight by 30%
Move headquarters to Ogden Yard north of Calgary in early 2014
Around mid-July, just weeks after Hunter Harrison took over as chief executive of Canadian Pacific Railway Ltd., the venerable railroader met with about
Canadian Pacific Railway Ltd.’s decision to hire away a top Canadian National Railway Co. executive came with the hefty price in the form of an agreement not to hire roughly 60 of its rivals’ top marketing and operations executives through 2016.
CP said Monday it had appointed CN’s chief operating officer, Keith Creel, as its new president, chief operating officer, and the likely successor to Hunter Harrison as its CEO.
Hunter Harrison’s reputation for underpromising and overdelivering while at the helm of Canadian National Railway Co. appears to have followed him to his role as chief executive of Canadian Pacific Railway Ltd.
The analyst community mostly balked at the earnings, revenue and operating ratio guidance CP delivered for 2014 Wednesday, largely calling it conservative and hiking their earnings estimates for the railroad accordingly.
Robbers took 120 packages of diamonds from a plane at Brussels airport. Jim Vena will be the new Canadian National Railways’ CEO. China will implement new taxes on carbon dioxide, water and coal. British Petroleum on a trial for the accident of oil spill in the Gulf of Mexico.
Concerns are being raised that efforts to improve efficiency at Canadian Pacific Railway Ltd. are contributing to a series of accidents at the railroad in recent months, including two more this week.
The country’s second-largest railway is in the midst of a massive restructuring under its new chief executive, Hunter Harrison, aimed at righting the railway’s chronic underperformance.