Canadian National Railway Case Study

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Canadian National Railway Company, also named CN, is a modern combined company that merges many middle and small railroad companies, which is the biggest railway company in Canada and the fifth biggest railway company in the North America. Established in 1919 by the Canadian government, the CN company is the first railroad line that links the coastline of the Atlantic Ocean and the Pacific Ocean. It was a state-owned business since its establishment for up to 76 years, and it carried out privatization reform in 1995 and succeed in coming into market. The network of the CN company owned about 20.000 route miles of track that stretches across mid-America and Canada, allowing passengers reached the three North American Free Trade Agreement. The …show more content…
The government abandoned the route with low traffic volume and stipulated the complex procedures, which extremely increased the operational cost and caused the company to operate a large number of deficit lines and business. One third of the company’s route has undertook 90% percent of the business volume, and one third has taken on 9 percent of its volume, while the rest one third has only assumed one percent of the total volume. In 1996, the Canada government enacted the transportation law, allowing the first-degree railway company to abandon the route with lower traffic volume and poor profitability, the situation has been improved. These problems enables the CN company to be both the worst railroad company in the North America, and the heavy burden of the Canadian government at that time. The privatization reform for the CN company has become a irresistible …show more content…
The premier of Canada said that unify this country by building the Canadian Pacific Railway, so people could know the significance of this railway. Except its huge succeed in private profitability, its social profitability was more obvious. The transportation system that ran through the western and eastern of the Canada accelerated the western expansion for the Canadians and improved the western development. This transcontinental North American railroad brought numerous value to its country as well as other

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