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Kelly Peters
By Kelly Peters
Kelly Peters
Kelly Peters
Currently Tomorrow.io's Director of Marketing, Kelly Peters is a growth-focused marketing leader with 10+ years of experience driving strategic communications and demand-focused initiatives for brands like CNBC, NBCUniversal, Dicks Sporting Goods, and JazzHR. At Tomorrow.io, she leads a dynamic team of growth and AI marketers in driving revenue with bold storytelling, radical creativity, and, above all else, human connection. Kelly graduated from Syracuse University and lives in Pittsburgh, PA.
Jul 27, 2024· 6 min

How Canadian National Railway Company Can Solve for Weather Before Their Next Earnings Call

    ​​Summary:

    • Severe weather challenges Canadian National’s operational efficiency and employee safety
    • CN is committed to enhancing network efficiency and delivering superior customer service
    • Advanced weather technology can bolster CN’s safety initiatives and improve operational planning
    • Predictive weather data offers strategic advantages for volume growth and market adaptation
    • Tomorrow.io’s solutions can help CN mitigate risks related to regulatory compliance and the safe transport of hazardous materials

    Established in 1919, Canadian National has evolved into North America’s transcontinental railway, spanning Canada and mid-America with approximately 20,000 route miles of track connecting three coasts.

    In Canadian National’s April 23, 2024 earnings call, President and CEO Tracy Robinson emphasized the company’s commitment to safety and operational efficiency. Patrick Whitehead, Chief Network Operations Officer, highlighted investments in network capacity, stating:

    “To support the growth we see coming our way, we will continue to invest in network capacity in key corridors, what we call no regret capital. In 2024, we are on track to complete additional double track along our Vancouver to Chicago corridor, and we will finish a siding extension project, west of Kamloops, British Columbia.”

    Chief Financial Officer Ghislain Houle acknowledged the volatile economic environment with ongoing monetary policy and geopolitical risks, which could impact the company’s operations and financial performance.

    These challenges are amplified by unpredictable weather events, which can exacerbate operational inefficiencies, safety risks, and market volatility. Severe weather not only causes delays and increased dwell times but also complicates labor scheduling and regulatory compliance. Canadian National’s goals of enhancing network capacity and customer service are directly impacted by its ability to effectively predict and navigate weather-related disruptions.

    With hyperlocal forecasting, predictive analytics, and actionable insights, Tomorrow.io’s Resilience Platformâ„¢ can help Canadian National mitigate weather-related risks and optimize operations.

    Here’s how:

    Enhancing Employee Safety with Weather-Informed Decision Making

    Tomorrow.io’s advanced weather intelligence technology can provide Canadian National with precise, hyperlocal weather forecasts tailored to their extensive rail network. This enables proactive planning and swift adaptation to adverse weather conditions, minimizing safety risks and maintaining operational efficiency.

    Real-World Application: Consider Canadian National’s operations through the challenging terrain between Edmonton and Vancouver. Tomorrow.io’s Resilience Platformâ„¢ could generate detailed predictions for multiple microclimates along this route. For instance, if avalanche conditions are forecasted in the Rocky Mountains, Canadian National could proactively adjust crew schedules, implement enhanced safety protocols, and temporarily halt operations in high-risk areas. 

    Optimizing Network Capacity and Alleviating Congestion

    Canadian National’s recent challenges with network congestion, particularly at key bottlenecks like the Greater Toronto Area and major port terminals, can be supported through Tomorrow.io’s real-time weather data and predictive analytics. By integrating these insights into their operations, Canadian National can proactively manage and mitigate weather-related disruptions, improving resource allocation and operational adjustments.

    Real-World Application: For example, Canadian National could implement an automated protocol for their Prince Rupert port operations. When severe coastal storms are forecasted within the next 24 hours, the system could trigger actions such as prioritizing the loading of weather-resistant cargo, securing lighter containers, and coordinating with shipping lines to adjust vessel schedules. This proactive approach would help maintain port efficiency and reduce congestion during adverse weather conditions, supporting their efforts to improve network fluidity. 

    CN could leverage Tomorrow.io’s advanced weather mapping to monitor conditions and generate actionable insights across its extensive North American network, from Kansas City to smaller stations.

    Supporting Volume Growth and Customer Service Improvements

    Canadian National has prioritized enhancing customer service metrics and driving volume growth. Leveraging Tomorrow.io’s advanced weather insights, Canadian National can integrate precise weather data into their operational protocols, allowing for more reliable service and strategic growth. This integration not only supports the optimization of current operations but also positions Canadian National to proactively manage weather-related challenges, ensuring continuous improvement in customer satisfaction and operational efficiency.

    What This Would Look Like In Action: For Canadian National’s expanding crude-by-rail business from Alberta to the Gulf Coast, Tomorrow.io’s Resilience Platformâ„¢ could provide detailed forecasts of potential weather-related risks along the entire route. This allows Canadian National to optimize train consists, adjust speeds in areas prone to extreme heat that could cause track buckling, and provide customers with more accurate estimated times of arrival. For example, during periods of intense heat forecasted in the southern United States, the platform could recommend speed reductions to prevent track deformities, ensuring the safe and timely delivery of crude oil.

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    Mitigating Risks Associated with Hazardous Materials Transport

    Canadian National faces significant risks related to the transportation of hazardous materials, including potential environmental hazards and regulatory compliance issues. By leveraging Tomorrow.io’s advanced early warning systems and actionable insights, Canadian National can proactively address weather-related risks, enhancing safety protocols and operational planning. This integration can potentially reduce the frequency and severity of weather-induced incidents, ensuring safer transportation of hazardous materials and protecting both the environment and company assets.

    What This Would Look Like In Action: For liquefied natural gas (LNG) shipments from northeastern British Columbia to coastal export terminals, Tomorrow.io’s platform could provide detailed temperature and wind forecasts along the route. This would enable Canadian National to implement necessary precautions, such as adjusting train speeds in high-wind areas or implementing additional cooling measures during extreme heat. These measures reduce the risk of accidents and potential environmental impacts, ensuring safer transport of hazardous materials and compliance with regulatory standards.

    Tomorrow.io’s predictive wind insights would allow Canadian National to adjust train speeds in high-wind areas, enhancing safety for LNG shipments.

    Enhancing Regulatory Compliance and Environmental Stewardship

    With increasing regulatory challenges and environmental compliance requirements, Tomorrow.io’s climate intelligence capabilities can significantly support Canadian National’s efforts in operational adjustments and strategic planning. By providing precise, real-time weather data and analytics, Tomorrow.io can help guide decisions on infrastructure investments, resource allocation, and operational strategies. This proactive approach ensures compliance with environmental regulations and demonstrates a commitment to sustainable practices.

    What This Would Look Like In Action: Using Tomorrow.io’s platform, Canadian National could assess the current and near-future viability of its infrastructure in Canada’s permafrost regions, such as its operations supporting northern communities and resource extraction. This insight could drive strategic decisions on track maintenance techniques, infrastructure reinforcement, or even the development of alternative transportation solutions. For instance, if data indicates thawing permafrost, Canadian National could implement advanced engineering solutions to stabilize tracks or reroute operations to more stable ground. These actions ensure long-term operational resilience and demonstrate proactive environmental risk management to regulators and stakeholders.

    By leveraging Tomorrow.io’s cutting-edge weather technology and predictive capabilities, Canadian National can enhance its operational resilience, maintain high service levels, and pursue profitable growth even in the face of environmental uncertainties. Together, Tomorrow.io and CN can transform rail logistics, ensuring robust, weather-resilient operations that set new benchmarks for industry excellence.

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