Transportation management

Project A - Railroad Industry

Background:

The railroad industry in Canada, is a critical part of the nation's infrastructure to move goods from suppliers to customers in many different industries. This industry has evolved over the years from a slow and cumbersome method of moving goods between two points to a dynamic, competitive option responding to the Just-In-Time requirements of many demanding customers. According to Transportation Canada, the Canadian rail industry has increased investment in railway networks, improved rail safety and security, developed strategic partnerships to share track and expand reach, and engaged in industry-wide efforts to reduce greenhouse gas emissions. Canada's rail transportation industry is moving full steam ahead in support of the country's economic growth.

The rail system in Canada was critical to the development of the nation. Following Confederation Canada was a group of disparate regions with a cluster of provinces to the East, including Ontario, Quebec and the Maritime Provinces (1867) separated from British Columbia in the West (1870) with vast, nearly empty, prairie lands in between. A bold plan was adopted to tie these regions together to ensure that the country, in its early days, would be connected for trade and resist the pull of joining the United States to the South.

As the nation and the economy grew, rail transportation expanded in a vast network throughout the country, into newly developed territories in the North to support the mining and lumber industries as well as central Canada, moving people and goods from the growing cities to newly developed communities.

At present the Canadian Pacific Railway (CP) and the Canadian National Railway (CNR) dominate the exclusively private network of railways that now, through ownership of and partnerships with US rail lines, extend their capability to move products throughout the United States and into Mexico. Transportation Canada indicates that 95% of Canadian rail tonne-kilometers, 75% of the industry's tracks and three quarters of overall tonnage is handled by these two operators. However, there is much more to this industry than even these two firms represent.

Assignment:

The purpose of this assignment is to involve students in the development of a detailed profile of the railroad industry as outlined in the following rubric. Every mode of transportation involves transferring a product to where the customer wants or needs it or where they wish to purchase it in the distribution channel (at the right place), when they want it (the right time), for what they are willing to pay (at the right price), and finally, at the expected quality or specified quality, thus meeting all their requirements.

Questions:-

1) Market Structure and Competition in the Canadian Railroad Industry. This section should provide details on the type of products, commodities and/or goods typically moved by various operators. The nature and intensity of competition in this industry should also be discussed. Students should also explore how this industry has adapted its operations to compete with other modes of transport.

2) Operating and Service Characteristics of the railroad industry: This section should include general service advantages as they pertain to typical railroad customers as well as the strengths and weakness of railroads in serving their customers. The nature and type of goods or commodities hauled should be explored. The variety of equipment and technology used as part of the transportation process, the types of equipment used as well as, the function and importance of rail terminals must be explained.