1 minute read
Long-Term Investment
from Group Project
CANADIAN NATIONAL RAILWAY COMPANY (CNR.TO)
Challenge
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Economic sensitivity: CNR’s profits are closely tied to the broader economy. During recessions, volumes and revenues decline.
CNR faces challenges around network congestion and capacity constraints, especially during peak periods.
CNR operates in a highly regulated environment and faces risks associated with more stringent regulations or unfavorable changes (KPMG US, 2022).
Emerging technologies like autonomous vehicles and drones could potentially disrupt the rail freight industry over the long term (The Disruption, 2017).
Solution
▶ CNR’s profits are closely tied to the broader economy. During recessions, volumes and revenues decline (The Impact of Recessions on Businesses, 2023).
▶ CNR is investing heavily in infrastructure expansion, equipment upgrades, and technology to improve network fluidity and increase capacity.
▶ CNR maintains a constructive relationship with regulators through transparency, good governance and sound environmental/safety practices.
▶ CNR is investing in new technologies of its own to enhance efficiency, safety and customer service. It also pursues strategic acquisitions.
