Canadian National Railway - statistics & facts
The Canadian freight railway industry remained one of the most lucrative of the country’s rail operations. In 2022, the Canadian National Railway Company (CN) ranked among the highest valued railway companies worldwide. A Class I freight railway spanning Canada, CN’s railway network also extended to Midwestern and Southern United States and continues to cover some 19,500 route miles. The company was established by the Canadian federal government in 1919 and was then privatized by the government on November 17, 1995.
However, the railway operator’s strong 2022 financial performance came with rising average fuel costs. As the war in Ukraine has a ripple effect on the Western Canadian Select crude oil price, the company’s operating expenses could hike up further in 2023 due to fuel costs, despite CN reducing its diesel fuel consumption.
CN ranked among the five leading North American railroad companies based on operating revenue, behind U.S.-based BNSF, Union Pacific, and CSX, making it the leading Canadian rail freight company. In 2022, it continued to outperform its main competitor Canadian Pacific Railway by over six billion U.S. dollars in operating revenue. Transporting over 5,600 carloads across its network, CN was also the fifth leading North American company based on carloads transported across its network, with its U.S. competitors taking the lead. The company also employed over 23,300 people for its operations, making it an essential employer in the Canadian railway industry.
Financial performance rebounds as challenges shift
CN generated total revenue of just over 17.1 billion Canadian dollars in 2022, a eighteen percent increase compared to its 2021 results, which were continuously impacted by the drop in demand due to the COVID-19 pandemic. The company further reported over 10.2 billion Canadian dollars in operating expenses. Despite this, revenues were higher than pre-pandemic levels and Canadian National Railway’s operating ratio—remained steady at around 60 percent, despite being lower than its 2020 and 2021 performance. This suggests the company continues to rebound from the pandemic and the 2020 Canadian pipeline and railway protests, which impacted its operations throughout Canada as it halted traffic along an important rail line between Toronto and Montreal.However, the railway operator’s strong 2022 financial performance came with rising average fuel costs. As the war in Ukraine has a ripple effect on the Western Canadian Select crude oil price, the company’s operating expenses could hike up further in 2023 due to fuel costs, despite CN reducing its diesel fuel consumption.
Stiff North American competition
The Canadian operator continues to contend with the Canadian Pacific Railway and Kansas City Southern merger. Canadian Pacific is CN’s main competitor in its home market and has extended its operations to Mexico by buying KCS—a market outside of CN’s rail network.CN ranked among the five leading North American railroad companies based on operating revenue, behind U.S.-based BNSF, Union Pacific, and CSX, making it the leading Canadian rail freight company. In 2022, it continued to outperform its main competitor Canadian Pacific Railway by over six billion U.S. dollars in operating revenue. Transporting over 5,600 carloads across its network, CN was also the fifth leading North American company based on carloads transported across its network, with its U.S. competitors taking the lead. The company also employed over 23,300 people for its operations, making it an essential employer in the Canadian railway industry.
