Businessweek

ronto. Right-of-Way The company’s rail network is standard gauge, which is used by all major railways in Canada, the U.S. and Mexico. Continuous welded rail is used on its core main line network. The company uses different train control systems on portions of its owned track, depending on the volume of rail traffic. Bulk Grain Grain transported by the company consists of both whole grains, such as wheat, corn, soybeans, and canola, and processed products, such as meals, oils, and flour. The company’s grain business is centered in two key agricultural areas: the Canadian prairies (Alberta, Saskatchewan and Manitoba) and the states of North Dakota, Minnesota, Iowa and South Dakota. Western Canadian grain is shipped primarily west to the Port Metro Vancouver and east to the Port of Thunder Bay for export. Grain is also shipped to the U.S. and to eastern Canada for domestic consumption. U.S.-originated export grain traffic is shipped to ports at Duluth and Superior. In partnership with other railways, the company also moves grain to export terminals in the U.S. Pacific Northwest and the Gulf of Mexico. Grain destined for domestic consumption moves east via Chicago to the U.S. Northeast or is interchanged with other carriers to the U.S. Southeast, Pacific Northwest and California markets. Coal The company handles mostly metallurgical coal destined for export through the Port Metro Vancouver for use in the steel-making process in the Pacific Rim, Europe, and South America. The company’s Canadian coal traffic originates mainly from Teck Resources Limited’s mines in southeastern B.C. In the U.S., it moves primarily thermal coal from connecting railways serving the thermal coal fields in the PRB in Montana and Wyoming. It is then delivered to power generating facilities in the Midwest U.S. The company also serves petroleum coke operations in Canada and the U.S. where the product is used for power generation and aluminum production. Sulphur and Fertilizers Sulphur The company transports approximately half of the sulphur that enters international markets from Canada. The company operates as a transporter of formed sulphur shipped from gas plants in southern Alberta to the Port Metro Vancouver. Its export traffic is destined mainly to China and Australia. In addition, it transports liquid sulphur from Scotford, Alberta, the refineries in the Edmonton area; and from other origins to the southeastern and northwestern U.S. for use in the fertilizer industry. Fertilizers Fertilizers traffic consists primarily of potash and chemical fertilizers. The company’s potash traffic moves mainly from Saskatchewan to offshore markets through the ports of Metro Vancouver, Thunder Bay and Portland, Oregon and to markets in the U.S. Chemical fertilizers are transported to markets in Canada and the U.S. from key production areas in the Canadian prairies. Phosphate fertilizer is also transported from U.S. and Canadian producers to markets in Canada and the northern U.S. The company provides transportation services from major potash and nitrogen production facilities in western Canada and has efficient routes to the major U.S. markets. The company also has direct service to key fertilizer distribution terminals, such as the barge facilities on the Mississippi River system at Minneapolis-St. Paul, as well as access to Great Lakes vessels at Thunder Bay. Merchandise Merchandise products move in trains of mixed freight and in various car types. Service involves delivering products to various different customers and destinations. In addition to traditional rail service, the company moves merchandise traffic through a network of truck-rail transload facilities and provide logistics services. Forest Products Forest products traffic includes wood pulp, paper, paperboard, newsprint, lumber, panel and oriented strand board shipped from key producing areas in B.C., northern Alberta, northern Saskatchewan, Ontario and Quebec to destinations throughout North America. Industrial and Consumer Products Industrial and consumer products traffic include a range of commodities grouped under chemicals, energy, a