CP Rail sees opportunities in the downturn
Source: Canadian
Press
Published: September 25th 2009
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Canadian Pacific Railway chief executive Fred Green says he
can't predict when the economy will recover fully and is focused
instead on using the downturn as a chance to experiment and prepare
for better times, Reuters reported.
Canadian Pacific, Canada's second largest railway, is using the
recession to try out operating changes, such as running extra-long
grain trains, Green said.
That's something it would not have been able to do when the economy
was stronger and its tracks were operating at full capacity, he
said.
It has also sped up plans to overhaul locomotives and freight cars,
allowing it to recall some laid off employees the railway says have
skills it will need when the economy rebounds and older workers
retire.
But Green acknowledged that using the downturn as a window of
opportunity can be a difficult sell to some investors who have an
eye on only cutting costs and short-term results.
"Our challenge as a company, and every company's challenge, is not
to be intimidated by the short-term thinkers on Wall Street," Green
said.
"If that means you have to go through some rough periods to position
these enterprises for long-term success, that's a far better angle
than it is to worry about a guy beating you up on a quarter."
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