Canadian National Railway: A modern business in a traditional industry

A key focus of the WCM Quality Global Growth portfolio is to find quality global companies with durable, strengthening economic moats and corporate cultures aligned to this growth.

In this mid-month update, we discuss a company that we hold that has an expanding economic moat and aligned corporate culture.

Stock in Focus: Canadian National Railway

You’d be forgiven for thinking a 100-year-old traditional rail business was out of place in a modern ‘global growth’ portfolio. Canadian National Railway (CNR), however, displays the key attributes common to all holdings in the WCM Quality Global Growth Strategy.

Headquartered in Montreal, CNR transports more than C$250 billion worth of goods annually for a wide range of business sectors, ranging from resource products to manufactured products to consumer goods. CNR’s rail network of approximately 20,000 route-miles spans Canada and mid-America. The network connects three coasts: the Atlantic, the Pacific and the Gulf of Mexico. 2019 marked the firm’s 100th anniversary. Over this time CNR has evolved from a collection of disparate railways into the leading North American transportation and supply chain company.

The key attributes common to all holdings in the WCM Quality Global Growth strategy are:

  • an expanding economic moat (rising competitive advantage), and
  • a corporate culture aligned to this moat trajectory.

CNR’s competitive advantage

The oligopolistic nature and highly regulated structure of the railroad industry are the primary drivers of CNR’s moat. As regulators within the railroad industry continue to disallow companies to lay additional tracks, the physical infrastructure required to operate a rail network as large as CNR’s acts as a huge industry barrier to entry.

Canadian National train crossing a bridge
Source: Canadian National Railway
 

The expansion of CNR’s moat comes from its continued growth in market share at the expense of the trucking industry. Railways are not exposed to issues such as traffic congestion, fluctuating oil prices and driver shortages which plague the trucking industry.

CNR’s commitment to ‘Precision Scheduled Railroading’ (PSR) underpins the firm’s culture. Former CEO and railroad legend Hunter Harrison introduced PSR to Canadian National Railway in the early 2000’s. This approach involves a greater focus on increased efficiencies, reducing the number of accidents and more trains arriving on time. Harrison understood the need for employees to buy into his operational vision. As such, he led training camps for managers of all levels, enabling the PSR ethos to permeate throughout the organisation. This in turn has led to CNR achieving the highest operating margins in the railway industry.

Canadian National has been a holding in the WCM Quality Global Growth strategy since March 2014.

[sc name="stock-in-focus-webinar-disclaimer-qgg"]

http://damai.balikpapan.go.id/assets/css/scatter-hitam/ https://scatterhitam-slot.com https://tth.com.tc/ https://gna.university/ https://guiqac.gnauniversity.edu.in/ http://tourism.gov.eg/ powergaming88 http://e-office.utu.ac.id/asset/assets/plugins/gacor/ powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 slot zeus nolimit city sv388 https://pariamantimur.pariamankota.go.id/assets/ https://sipatudia.bpsdm.sumbarprov.go.id/assets/mahjong/ slot jepang http://46.250.237.148:8005/ http://simokata.tabanankab.go.id/dist/img/thailand/ scatter hitam slot thailand link slot thailand 777 slot powergaming88 slot luar negeri slot gacor maxwin slot gacor hari ini slot gacor terbaru mahjong ways 2 slot thailand jp slot slot bni slot bri slot bsi slot danamon slot gopay slot server korea slot malaysia slot amerika slot rusia fan tan monopoly live lightning roulette mega ball sweet bonanza candyland mega sic bo mega baccarat andar bahar sbobet88 ktm303 slot dubai slot qris powergaming88 Slot Thailand Slot Zeus Pg Soft Starlight Princess Slot Gacor Maxwin Joker123 Sv388 Slot Thailand Slot Thailand Slot Qris slot thailand joker123 mahjong ways 2 888slot slot jepang slot thailand slot mahjong ways slot qris slot deposit dana slot dana nolimit city slot thailand sv388 slot888 slot kamboja http://labse.ce.undip.ac.id/sejarah/gacorx/ Slot Thailand Starlight Princess Mahjong Ways 2 Slot Maxwin slot thailand slot filipina slot88 slot thailand slot mahjong NEW SLOT POLA GACOR https://mandiri-gacor.angkolatimur.tapselkab.go.id/ jp slot slot ganas https://cheat-gacor.angkolatimur.tapselkab.go.id/ crazy time live slot qris https://sqris.angkolatimur.tapselkab.go.id/ slot akurat qris https://pragmaticplay.dharmasatyasarana.co.id/ https://dana.sidamaju.skom.id/ https://joker123.putramuko.co.id/ https://akun-pro-rusia.mariyadl.sch.id/ slot zeus server thailand server hongkong slot ovo slot gopay slot linkaja joker123 nolimit city sv388 starlight princess mahjong ways pg slot slot zeus sv388 idn slot https://joker123.elearningmansatuokit.sch.id/ slot server thailand slot thailand https://slot-thailand.itr.ac.id/ https://pn-watansoppeng.go.id/media/jui/server-thailand/ https://dinkes.hsu.go.id/wp-content/uploads/server-thailand/ nolimit city slot ovo slot gopay pragmati play starlight princess slot pg soft slot mahjong slot zeus digmaan slot mania slot zeus server thailand ying77 slot thailand judi bola live casino sv388 pg soft slot dana mahjong ways slot mania slot x500 ladangtoto slot server kamboja digmaan digmaan slot88 scv388 sabung ayam online slot live casino sicbo online slot thailand ladangtoto sv388 ladangtoto powergaming88 66kbet powergaming88 slot thailand ladangtoto slot thailand server thailand slot thailand slot thailand slot thailand slot gacor ladangtoto2 ying77 bet server thailand slot thailand ying77 slot88 ladangtoto ladangtoto slot maxwin sv388 sv388 slot gacor 66k bet slot dana sabung ayam inline slot mahjong slot toto slot server thailand slot gacor slot server thailand slot thailand situs slot wwg slot slot daftar judi slot online indonesia slot gacor slot mawin slot gacor slot thailand slot gacor slot gacor demo slot pragmatic sv388 slot88 pgsoft Daftar Judi Slot Online Indonesia Paling Gacor di Indonesia Daftar Situs Judi Slot Online SLOT88 lucky neko slot gacor slot88 slot kakek slot maxwin slot thailand Slot Mahjong Ways 2 Mudah Jackpot Paus di PG Soft Hari ini 2023 Lucky Neko Situs Slot Gacor Pgsoft Hari Ini SITUS SABUNG AYAM SV388 ONLINE DAFTAR LINK LOGIN APK AGEN SV388 https://puskesmasnaras.pariamankota.go.id/ maxbet slot gacor agen judi bola slot gacor slot nolimit slot777 https://furets-jaunes.org/ https://www.forestry-quarantine.org/ toto slot slot777 Slot Qris slot gacor 2025 https://leesgreekandpizza.com/ slot gacor powergaming88 powergaming88 powergaming88 slot gacor powergaming88 toto slot slot88 slot88 slot gacor slot gacor slot gacor slot thailand powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 slot toto slot thailand powergaming88 powergaming88 slot thailand slot 777 powergaming88 sbobet powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 slot gacor powergaming88 Slot88 Live Casino APEX303 APEX303 APEX303 APEX303 Mahjong Wins 3 APEX303 APEX303 Mahjong Wins 3 RTP SLOT GACOR Slot Gacor Slot Gacor Slot Gacor Slot Gacor APEX303 APEX303 Slot Thailand APEX303 APEX303 Slot Gacor APEX303 Slot Pulsa Scatter Hitam Slot88 Slot Thailand Slot88 Slot Gacor Slot Thailand Scatter Hitam APEX303 APEX303 Slot Gacor Situs Togel Slot Gacor Slot Gacor APEX303 Slot Gacor APEX303 APEX303 APEX303 CRAZY TIME SV388 Slot Gacor APEX303 Mahjong Wins 3 APEX303 Slot Gacor APEX303 LIVE CASINO APEX303 Slot Gacor APEX303 Slot Gacor 888SLOT slot bet 200 crazy time sv388 mahjong wins 3 slot pulsa crazy time 888slot scatter hitam slot777 gtr303 mahjong wins 3 scatter hitam sv388 slot bet 200 sv388 gtr303 ws168 bonanza candyland ga28 roulette online slot qris judi bola bandar slot gacor sabung ayam online slot qris crazy time slot88 sweet bonanza candyland slot online slot qris slot thailand sbobet mega wheel slot deposit qris slot online gampang menang slot88 slot qris slot gacor maxwin slot deposit 5000 slot qris slot gacor 2024 link slot gacor spaceman slot scatter hitam 888slot slot maxwin slot dana https://www.nidodevalverde.com/ 888SLOT Slot Thailand slot gacor https://pensivefederation.com/ slot gacor hari ini slot gacor sbobet gtr303 https://windizupdate.com/ slot online gtr303 slot thailand situs slot gacor slot toto scatter hitam crazy time crazy time casino online slot gacor gtr303 situs judi bola terpercaya gtr303 gtr303 gtr303 slot thailand ktm303 casino online togel online situs togel crazy time slot gampang menang slot gacor slot gacor ktm303 joker123 https://dinkes.hsu.go.id/scatter-hitam/ https://pmb.itsnupekalongan.ac.id/vendor/bin/scatter-hitam/ https://jurnal.univa-labuhanbatu.ac.id/public/site/scatter-hitam/ https://lpm.univa-labuhanbatu.ac.id/wp-content/themes/jnews/scatter-hitam/ https://scatterhitam-slot.com https://tth.com.tc/ https://gna.university/ https://guiqac.gnauniversity.edu.in/ http://tourism.gov.eg/ powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 powergaming88 Slot Thailand Starlight Princess Mahjong Ways 2 Slot Maxwin https://sipatudia.bpsdm.sumbarprov.go.id/assets/mahjong/ scatter hitam powergaming88 sv388 idn slot https://slot-thailand.itr.ac.id/ https://pn-watansoppeng.go.id/media/jui/server-thailand/ slot mania slot zeus ying77 judi bola live casino sv388 mahjong ways slot mania slot server kamboja digmaan slot88 slot live casino slot thailand powergaming88 powergaming88 slot thailand ladangtoto slot thailand server thailand slot thailand slot thailand slot thailand slot gacor powergaming88 ladangtoto sv388 slot toto slot server thailand slot thailand situs slot wwg slot slot gacor slot mawin slot gacor slot thailand slot gacor slot gacor slot88 pgsoft Daftar Judi Slot Online Indonesia Paling Gacor di Indonesia Daftar Situs Judi Slot Online SLOT88 lucky neko slot gacor slot88 slot maxwin slot thailand Slot Mahjong Ways 2 Mudah Jackpot Paus di PG Soft Hari ini 2023 Lucky Neko Situs Slot Gacor Pgsoft Hari Ini SITUS SABUNG AYAM SV388 ONLINE DAFTAR LINK LOGIN APK AGEN SV388