Canadian National Railway Company (
which operates the largest rail network in Canada and the only
transcontinental network in North America, continues to expand its
operations in Southeast Asia by employing Ajay Kumar Singh to look
after its Mumbai office.
Mr. Singh having worked as a chief marketing officer for
ocean-front terminals in India and Eastern Canada is the perfect
candidate for this job as he can easily generate new business
prospects across the Southeast Asian countries. Moreover, opening
of Mumbai office will help to establish connection with the
company's Canada, U.S. and Southeast Asian business with each
During the Mumbai operation, the ports of Halifax and Montreal
will form important operational areas for Canadian National Railway
as it is through these ports goods will be exported to other
Southeast Asian countries.
At present, Canadian National Railway is continuously making
inroads to major Southeast Asia cities like Beijing, Tianjin,
Qingdao, Shenzhen, Shanghai, Ho Chi Minh City, Hong Kong, Taipei,
Seoul and Tokyo. Hence, opening of the Mumbai office will be
another addition to its long-term goal.
Canadian National expects strong demand across all its
businesses with improvement in wholesale and retail market
supporting high business volumes for the company. As a result, the
company plans to invest C$1.8 billion this year to upgrade its
railway infrastructure project. So, opening of offices across
Southeast Asian countries is also a part of its aggressive growth
Despite the slowing economy and stiff competition from
Canadian Pacific Railway
), we believe the improving operating efficiency along with
expansion growth in key markets will help the company achieve
strong financial results in the quarters ahead. This has
underpinned mid-single digit carload growth and approximately a 10%
earnings growth in 2012. Management continues to expect a
sustainable operating ratio, given stronger volume growth at low
incremental cost with productivity initiatives like improving
system velocity and fuel efficiency.
Currently, Canadian National Railway has a Zacks #2 Rank,
implying a short-term Buy rating on the stock. However, for the
long term, we maintain our Neutral recommendation on the stock.
Based in Montreal, Canada, Canadian National Railway Company is
engaged in the rail and related transportation business.
CDN NATL RY CO (CNI): Free Stock Analysis
CDN PAC RLWY (CP): Free Stock Analysis Report
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