ATB's Todd Hirsch Article on rail issue in Globe and Mail!!

[northfarmer]

I have been told te implied rates of return in our
capped rates are 15 to 20% range. How about
someone present these facts I would like to know
what they make for return. It is a duopoly not a
proper competitive functioning market.

[farming101]

CPR Facts: Here is what I get out of the CPR annual report. If someone wants to study these reports and show me what I interpreted incorrectly go to it.

Table 1: CPR had a good year. Revenue up significantly.
Operating income excluding significant items was 30% of gross revenues. 1.844 Billion.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CPR2013Financialhighlights_zpsa66cc03d.png" border="0" alt=" photo CPR2013Financialhighlights_zpsa66cc03d.png"/></a>

Table 2: Revenues broken down into various kinds of freight.
Note increases in revenue from grain were 7% and 11% 2011-2013.
The only segment to out do increase in grain revenues was industrial and consumer products(this includes oil)
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CPR2013revenues_zpscaa0e324.png" border="0" alt=" photo CPR2013revenues_zpscaa0e324.png"/></a>

Table 3:Annual performance indicators. Note increase in train length.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CPR2013Performanceindicators_zpsf1b95c34.png" border="0" alt=" photo CPR2013Performanceindicators_zpsf1b95c34.png"/></a>

Table 4:Total carloads and Revenue ton-miles. Revenue ton-miles is the number of times the railroad hauled one ton one mile. Note grain cars hauled in 2011 was 450,000. Compare that to 438,000 in 2013.
This doesn't mean they didn't haul more grain in Canada as these figures include business they did hauling grain for US customers as well. It is interesting though. Note the increase in industrial and consumer products (which includes oil) made the largest volume gains.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CPR2013Volumes_zps181a3038.png" border="0" alt=" photo CPR2013Volumes_zps181a3038.png"/></a>

Table 5: This is very interesting. It reveals the revenue from hauling one ton one mile. Average is 4.15 cents per mile. Grain at 3.82 cents is under the average. Industrial(including oil) is making them less per ton mile than it did last year and in turn the year before. This is gross revenue and does not show the expense incurred to earn the revenue.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CPR2013Revenuepertonmile_zps06421d9f.png" border="0" alt=" photo CPR2013Revenuepertonmile_zps06421d9f.png"/></a>

Table 6: Another interesting table. Revenue per carload. Average increase has been 7% in both 2012 and 2013.The cost to ship a car of grain has increased 21.2% in 2 years. Industrial(including oil)up 23.4%. Fertilizer includes potash.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CPR2013revenuepercarload_zps281f00d5.png" border="0" alt=" photo CPR2013revenuepercarload_zps281f00d5.png"/></a>

Table 7: This is the 4th quarter results for 2013. Note that grain revenue was up 30 million even though the railroad says in December 2013 they couldn't do as much as they wanted. Too cold. Expenses directly related to the actual work of hauling the loads were not up much.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CPR2013FourthQuarterSummary_zps26585a00.png" border="0" alt=" photo CPR2013FourthQuarterSummary_zps26585a00.png"/></a>

Table 8: Performance indicators for the last quarter of 2013.
Note that the average car length INCREASED 470 feet compared to the 4th quarter of 2012.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CPR2013FourthQuarterPerformanceindicators_zps75860 683.png" border="0" alt=" photo CPR2013FourthQuarterPerformanceindicators_zps75860 683.png"/></a>

Table 9: This is from the CTA Website. It shows the amount the railways earned from hauling grain subject to the revenue cap.
It is by crop year so it cannot be directly compared to the railway statements which are Jan-Dec. Interesting that the CPR exceeded the cap 7 years out of 13. CN exceeded 5 years out of 13. 2007-08 was the year adjustments were made to car repair costs. CN must be disgusted with their rates they charged in 2012-13. They were under by 6.3 million. Chump change I guess.
<a href="http://photobucket.com/" target="_blank"><img src="http://i1211.photobucket.com/albums/cc421/farming101/CTA2012-13_zpse9da1ecf.png" border="0" alt=" photo CTA2012-13_zpse9da1ecf.png"/></a>

[SASKFARMER3]

Did I read right that CP or CN use ATB to bank. Hm this guy is a idiot.