More rail mergers inevitable — but unlikely in the near term, says Tellier
PHOENIX, Ariz. (Oct. 16, 2001, via Businesswire) — The increasing integration of the American and Canadian economies will require a greater north-south orientation of the North American rail industry to allow shippers to tap new business opportunities, says Paul M. Tellier, CN’s president and chief executive officer.
Tellier, speaking to the North American Fertilizer Transportation Conference, said North American railroads of the future will also have a sharper customer focus, greater market share and healthier balance sheets.
Tellier added that, “further consolidation of railroads is almost inevitable” to satisfy shippers’ demands for premium, single-line service.
Under current conditions new rail mergers are unlikely within the next two to three years, Tellier said, although events could trigger a new round of rail consolidation more quickly.
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