Canadian National Railway Co (CNI) 2024 Q2 法說會逐字稿

Good afternoon. My name is Julianne and I will be your operator today. All participants are now in a listen-only mode.

午安.我叫朱莉安，今天我將成為您的接線生。所有參與者現在都處於只聽模式。

At this time I would like to turn the call over to Stacy Alderson, CN's Assistant Vice President of Investor Relations. Ladies and gentlemen, Ms. Alderson.

現在我想把電話轉給 CN 投資者關係助理副總裁史黛西·奧爾德森 (Stacy Alderson)。女士們先生們，奧爾德森女士。

Thank you, Julianne. (spoken in foreign language) Good afternoon, everyone, and thank you for joining us for CN's second quarter 2024 financial and operating results conference all.

謝謝你，茱麗安。（外語）大家下午好，感謝大家參加我們的CN 2024年第二季財務與經營業績發表會。

Before we begin, I'd like to draw your attention to the forward-looking statements and additional legal information available at the beginning of the presentation. As a reminder, today's conference call contains certain projections and other forward-looking statements within the meaning of the US and Canadian securities laws.

在開始之前，我想提請您注意簡報開頭提供的前瞻性陳述和其他法律資訊。提醒一下，今天的電話會議包含美國和加拿大證券法含義內的某些預測和其他前瞻性陳述。

These statements are subject to risks and uncertainties that may cause actual results to differ materially from those expressed or implied in these statements. They are more fully described in the forward-looking statements section of the presentation.

這些陳述存在風險和不確定性，可能導致實際結果與這些陳述中明示或暗示的結果有重大差異。簡報的前瞻性陳述部分對它們進行了更全面的描述。

After the prepared remarks, we will conduct a Q&A session with our analysts. As usual, we would ask that you please limit yourself to one question.

在準備好的發言之後，我們將與分析師進行問答環節。像往常一樣，我們會要求您只回答一個問題。

Joining us on the call today are Tracy Robinson, our President and CEO; Derek Taylor, our Chief Field Operations Officer; Patrick Whitehead, our Chief Network Operations Officer; Remi Lalonde, our Chief Commercial Officer; and Ghislain Houle, our Chief Financial Officer.

今天加入我們電話會議的是我們的總裁兼執行長 Tracy Robinson； Derek Taylor，我們的首席現場營運長； Patrick Whitehead，我們的網路營運長； Remi Lalonde，我們的商務長；以及我們的財務長 Ghislain Houle。

It is now my pleasure to turn the call over to CN's President and Chief Executive Officer, Tracy Robinson.

現在我很高興將電話轉給 CN 總裁兼執行長 Tracy Robinson。

(spoken in foreign language) Thanks, everyone, for joining our call today. I'll turn to the quarter in just a moment, but first, I'll make a few comments on the broader landscape.

（用外語發言）感謝大家今天加入我們的電話會議。我稍後將討論本季度，但首先，我將就更廣泛的情況發表一些評論。

Now at the macro level, the economy is shaping up to be in line with what we expected when we developed our plans, with North American industrial production trending slightly positive from mixed signals in consumer areas that are mostly timing issues related to interest rates and continued strength in the bulk portfolios. So at a high level, pretty much what we expected.

現在在宏觀層面上，經濟正在與我們制定計劃時的預期相符，北美工業生產因消費領域的混合信號而呈現略微積極的趨勢，這些信號主要是與利率相關的時間問題，並且持續大宗投資組合的實力。所以從高水準來看，幾乎符合我們的預期。

Outside of the macro, I remain very encouraged with the progress we're making with our CN-specific growth initiatives, which are coming online very nicely. We are building a portfolio of business that works for us, fits our network and enables us to efficiently provide strong customer service. The recent strength in our petroleum and fuels business, the growth of our sand franchise, the rebuild of our international portfolio are all part of this.

在宏觀之外，我仍然對我們針對中國的成長計畫所取得的進展感到非常鼓舞，這些計畫正在順利實施。我們正在建立適合我們、適合我們網路並使我們能夠高效提供強大客戶服務的業務組合。我們石油和燃料業務的近期實力、沙特許經營權的成長以及國際投資組合的重建都是其中的一部分。

Now I know you're looking forward to hearing from Remi today, and he'll give you more insight in a few minutes on both the base business and our more specific customer efforts, which will continue to be a key driver of our growth.

現在我知道您今天期待收到雷米的來信，他將在幾分鐘內為您提供有關基本業務和我們更具體的客戶工作的更多見解，這將繼續成為我們成長的關鍵驅動力。

In our operations, the scheduled model continues to serve us well. The East and South regions this year are posting velocity and on-time numbers that are better than last year. The West has had some issues in Q2, which we will discuss today, but have lifted out of that in Q3. And customer service levels continue to be very strong across the entire network.

在我們的營運中，預定的模式繼續為我們提供良好的服務。今年東部和南部地區的速度和準點率都比去年好。西方在第二季遇到了一些問題，我們今天將討論這些問題，但在第三季已經解決了。整個網路的客戶服務水準仍然非常高。

The fundamentals of our business are good. The question in this quarter is leverage. And for the remainder of the year, it's more about the labor situation in Canada. And we'll get into both of these in our comments today.

我們業務的基本面良好。本季的問題是槓桿。在今年剩下的時間裡，更多的是關於加拿大的勞動力狀況。我們將在今天的評論中討論這兩個問題。

So first, on labor and the status of our TCRC situation in Canada. Now as you know, the CIRB has now advised that they will release the decision on or about August 9, on the question of the essential service designation. Now there cannot be a work stoppage until they render a decision. And subject to any direction they provide on the cooling off period, the parties are then required to give a 72-hour notice of a strike or a lockout.

首先，關於加拿大的勞工和 TCRC 狀況。如您所知，CIRB 現在已建議他們將於 8 月 9 日左右發布關於基本服務指定問題的決定。現在，在他們做出決定之前，不能停工。根據他們就冷靜期提供的任何指示，各方必須提前 72 小時發出罷工或停工通知。

Now the prolonged nature of this process which prior to CIRB referral was to conclude in May is impacting our customers, and it's impacting our business, particularly in the international intermodal where customers have taken actions to reroute vessels away from Canadian ports until the labor questions have been resolved.

現在，在CIRB 移交之前於5 月結束的這一流程的長期性正在影響我們的客戶，並且它正在影響我們的業務，特別是在國際聯運方面，客戶已採取行動將船隻改道遠離加拿大港口，直到勞工問題得到解決。

Now our intent with the TCRC has not changed. We prefer a negotiated agreement that would do two things. Create a structure on work scheduling that would be positive to current employees and our ability to attract the next generation and improve crew availability, which has been significantly impacted by the Canadian duty and rest period rules issued by the federal government last year.

現在我們對 TCRC 的意圖並沒有改變。我們更希望透過談判達成一項能夠做兩件事的協議。創建一個工作安排結構，這對現有員工以及我們吸引下一代和提高船員可用性的能力都有積極作用，這受到聯邦政府去年發布的加拿大值班和休息時間規則的重大影響。

We need better availability provisions so that we're able to move our customers' volumes safely, cost efficiently, and on time. The offers that we've made to the TCRC have been consistent with this.

我們需要更好的可用性規定，以便我們能夠安全、經濟高效且準時地運送客戶的貨物。我們向 TCRC 提出的報價與此一致。

So now in the quarter. Overall volumes came in on plan, but not exactly in the way that we expected. And we were tracking well ahead of plan overall up until the third week in May, driven by growth in international as well as frac sand, petroleum and chemicals and the late rush on Canadian grain to Vancouver.

現在是本季。整體銷售量按計畫完成，但並不完全符合我們的預期。直到 5 月第三週，在國際以及壓裂砂、石油和化學品的增長以及加拿大穀物後期運往溫哥華的推動下，我們總體上遠遠超出了計劃。

Starting late May, we saw a sharp reduction, primarily in our international volumes on concerns of a work stoppage. Now this is volume destined to the US, that shifted to US ports. So we had lighter volumes in the Rupert quarter than expected.

從 5 月下旬開始，我們看到了急劇下降，主要是由於擔心停工，我們的國際銷售量急劇下降。現在，這是運往美國的貨物量，然後轉移到美國港口。因此，魯珀特季度的銷量比預期要少。

And at the same time, the heavy grain flows made us much busier in the Vancouver corridor. In fact, we moved record volumes in this quarter, during the period of a very heavy work block program on our system and in the directional running zone in which both the Canadian rails operate.

同時，大量的糧食流動也讓溫哥華走廊變得更加繁忙。事實上，在本季度，在我們的系統上以及加拿大鐵路運行的定向運行區域進行非常繁重的工作區塊計劃期間，我們的運輸量創下了紀錄。

The team got it done, but it wasn't efficient. We saw this in our velocity metrics in the West and in labor productivity. Now it's important to note that the velocity issue has been temporary and the operation in the West has returned to normal levels as the work blocks have moved to other parts of the network. So in the quarter, we delivered on the overall volume level, but we lost traction on leverage.

團隊完成了它，但效率不高。我們在西方的速度指標和勞動生產力中看到了這一點。現在值得注意的是，速度問題是暫時的，隨著工作區塊轉移到網路的其他部分，西部地區的運作已恢復到正常水準。因此，在本季度，我們實現了整體成交量水平，但我們失去了槓桿作用。

Now Derek and Pat will take you through the details and how we're responding. Here's where it is at a high level. The mix of business was different than what we planned with more bulk and intermodal and less manifest traffic where we had the most leverage opportunities. We had more demand in the West than expected and less demand than planned in the South and the East.

現在德里克和帕特將向您介紹詳細資訊以及我們如何應對。這就是它處於高水平的地方。業務組合與我們的計劃不同，我們擁有最多的槓桿機會，散貨和多式聯運較多，而明顯流量較少。西部地區的需求高於預期，南部和東部地區的需求低於計劃。

And as a result, we had more unproductive labor, particularly in the South, given lower grain and coal volumes through the quarter. And we had lower labor productivity in the Vancouver corridor as we managed record volumes through a heavy work block period. We also had a headwind on fuel in the corner of about $0.10, which Ghis will take you through.

結果，我們有更多的非生產性勞動力，特別是在南方，因為本季糧食和煤炭產量下降。溫哥華走廊的勞動生產力較低，因為我們在繁重的工作封鎖期間管理了創紀錄的產量。我們在燃料方面也遇到了阻力，價格約為 0.10 美元，吉斯將帶您度過這一難關。

So as we move through July, the velocity in the West is back to normal levels and we're taking actions on unproductive labor. We continue to monitor the international volumes to ensure that we are positioned well for their return once we have labor stability.

因此，隨著進入七月，西方的速度恢復到正常水平，我們正在對非生產性勞動力採取行動。我們將繼續監控國際數量，以確保一旦勞動力穩定，我們就能為他們的回歸做好準備。

So with Q2 in mind and with the anticipated continued rerouting of international volumes for a period, we are revising our full year guidance to mid to high single-digit EPS growth. This assumes no labor disruptions on the rails or at the ports, and it assumes the current traffic diversions do not increase.

因此，考慮到第二季度，並考慮到國際銷售在一段時間內的持續調整，我們將全年指引修改為中高個位數每股收益成長。這假設鐵路或港口的勞動力不會受到干擾，目前的交通改道不會增加。

And while there's no doubt that 2024 has and will continue to have its fair share of challenges, our longer-term outlook and growth agenda remain intact, and we remain confident that our operating model will drive leverage as our volumes normalize post labor uncertainty.

毫無疑問，2024 年已經並將繼續面臨挑戰，但我們的長期前景和成長議程保持不變，而且我們仍然相信，隨著我們的產量使勞動力不確定性正常化，我們的營運模式將推動槓桿率的提高。

So I'll hand it over to the team to provide more details and you're up first Derek.

所以我會將其交給團隊提供更多詳細信息，德里克，你先上手。

Thanks, Tracy. Good afternoon, everyone. I'm on slide 7 for reference. Overall, the railroad ran relatively well in the second quarter, which bears out with overall car velocity at 210 miles per day which is down 3% from last year.

謝謝，特雷西。大家下午好。我在幻燈片 7 上供參考。總體而言，第二季鐵路運行情況相對較好，車輛總行駛速度為每天 210 英里，比去年下降了 3%。

Some of our other operating metrics like network train speed and 32-hour cars aren't quite where they were last year, but are still demonstrating a fluid railroad that is handling the growth. Notably, the Southern and Eastern regions continue to perform well operationally throughout the entire quarter.

我們的一些其他營運指標（例如網路列車速度和 32 小時汽車）雖然與去年的水平有所不同，但仍然展示了一條能夠應對增長的流暢鐵路。值得注意的是，南部和東部地區整個季度的營運持續表現良好。

The Western region was quite busy with growth weighted more towards intermodal and bulk. To give you a sense of how busy we were, Q2 was the all-time highest average daily GTMs through the Vancouver corridor in CN's history. We added train starts to accommodate the growth as we had planned and have been successful in onboarding those volumes overall.

西部地區相當繁忙，成長更多地偏重於多式聯運和散貨。為了讓您了解我們有多忙，第二季度是 CN 歷史上通過溫哥華走廊的有史以來最高的日均 GTM。我們按照計劃增加了列車開動量以適應增長，並且已經成功地實現了總體運量的增長。

However, our operating metrics reflect the fact that we were impeded by ongoing track maintenance work in the critical Vancouver corridor throughout the entire quarter. There wasn't a single week in the second quarter where there wasn't some form of planned or unplanned maintenance in the directional running zone or DRZ. Recall that this is the area where CN and CPKC run on each other's tracks to effectively create double-track capacity.

然而，我們的營運指標反映了這樣一個事實：整個季度我們都受到溫哥華關鍵走廊正在進行的軌道維護工作的阻礙。第二季的每一周，定向運作區或 DRZ 中都存在某種形式的計畫內或計畫外維護。回想一下，這是 CN 和 CPKC 在彼此軌道上運行的區域，以有效地創造雙軌通行能力。

When this work is being done, it squeezes capacity because we can't run trains for four to eight hour blocks at a time. We also know that any type of maintenance work in the DRZ has a disproportionate impact on CN because we run more trains through that specific corridor. As work blocks wrapped up on the DRZ, fluidity returned.

當這項工作完成時，它會擠壓運力，因為我們無法一次運行四到八個小時的列車。我們也知道，DRZ 中的任何類型的維護工作都會對 CN 產生不成比例的影響，因為我們透過該特定走廊運行更多的列車。隨著 DRZ 上的工作區塊完成，流動性又回來了。

In July, car velocity has been trending toward 220 miles per day and our network train speed is trending towards 20 miles per hour. That is right where we want them to be. I am confident these health of network metrics will continue to trend favorably.

7 月，汽車速度趨向於每天 220 英里，我們的網路火車速度趨向於每小時 20 英里。這正是我們希望它們所在的位置。我相信這些網路指標的健康狀況將繼續保持良好的趨勢。

We had good terminal performance in the second quarter. Our yards were quite fluid throughout the entire network and our local service commitment performance approached an all-time high of 94%, topping last year's excellent 91% result. This performance also enabled us to really deliver for our customers in first and last mile execution. Great rarity by the entire team in the field.

第二季度我們的終端表現良好。我們的堆場在整個網路中非常流暢，我們的本地服務承諾績效接近 94% 的歷史最高水平，超過了去年 91% 的出色成績。這種性能還使我們能夠在第一英里和最後一英里的執行中真正為客戶提供服務。對於整個團隊來說都是非常罕見的。

As you heard Tracy mentioned in her remarks, we have taken action in terms of operating leverage when it comes to both labor and physical assets. In terms of labor, we stopped hiring in both the Southern region and Eastern region. We have also offered voluntary furloughs in both of those respective regions that employees have been utilizing.

正如您在特雷西的演講中提到的那樣，我們在勞動力和實體資產方面都在運作槓桿方面採取了行動。在用工方面，我們停止了南部地區和東部地區的招募。我們也在員工一直在使用的這兩個地區提供自願休假。

Another action has been offering permanent transfers from the Eastern region to the Western region where more of the demand has been to balance out our people requirements. In terms of physical assets, we have put down both locomotives and specific car fleets to adjust for the current demand profile that is out there.

另一項行動是提供從東部地區到西部地區的永久調動，西部地區的需求更多是為了平衡我們的人員需求。在實體資產方面，我們已經放下了機車和特定車隊，以適應當前的需求狀況。

I'll just wrap up by saying that the railroad is running well and will continue to run well, especially with some of these short-lived challenges behind us as we deliver for our customers.

最後，我想說的是，鐵路運作良好，並將繼續運作良好，特別是在我們為客戶提供服務時，我們已經克服了一些短暫的挑戰。

Now I'll turn it over to Pat.

現在我把它交給派特。

Thanks, Derek, and good afternoon. I'd like to start today by talking about safety. We are committed to building a safety culture where zero serious injuries and totalities as possible. In the quarter, we saw a 22% improvement in the accident frequency ratio, though, as Ghislain will speak to, the accidents were more consequential, which drove higher costs in the quarter.

謝謝，德里克，下午好。我今天想從談論安全開始。我們致力於建立一種安全文化，盡可能實現零重傷和零傷亡。在本季度，我們看到事故發生率提高了 22%，不過，正如 Ghislain 所說，事故的後果更為嚴重，這導致了本季的成本上升。

We continue to work with our leaders and unionized teammates and invest in and leverage technology and training to drive improvement in our accident metrics. We are currently providing training for managers focusing on behavior-based safety best practices to reduce human factor incidents and accidents.

我們繼續與領導者和工會隊友合作，投資並利用技術和培訓來推動事故指標的改進。我們目前正在為管理人員提供培訓，重點關注基於行為的安全最佳實踐，以減少人為因素事件和事故。

We saw a 13% deterioration in our injury frequency ratio driven by our leading cause of injuries, slips, trips and falls, while walking. We have taken note that there has been a 30% reduction in these injuries with employees that have been trained on our walking simulator. We will be investing in additional mobile simulators to train our folks in the field across all of operations.

我們發現步行時受傷的主要原因是滑倒、絆倒和摔倒，導致受傷頻率下降了 13%。我們注意到，在我們的步行模擬器上接受過培訓的員工，這些傷害減少了 30%。我們將投資額外的移動模擬器來培訓我們在所有操作領域的人員。

I also want to mention our real-time hazard and near-miss reporting app Enablon Go . We have had great adoption of the tool amongst our employees. This is a huge asset in reducing hazards and injury prevention. We have already resolved over 1,000 walking conditions received by employees utilizing the tool.

我還想提一下我們的即時危險和險情報告應用程式 Enablon Go。我們的員工廣泛採用了該工具。這對於減少危險和預防傷害來說是一筆巨大的財富。我們已經解決了使用該工具的員工遇到的 1,000 多個步行問題。

Now as Derek mentioned, we were impacted in the quarter by work blocks in the Vancouver corridor. But when we say the plan is sacred, that also applies to the engineering and maintenance plan.

現在，正如德里克所提到的，我們在本季度受到了溫哥華走廊工作區的影響。但是，當我們說計劃是神聖的時，這也適用於工程和維護計劃。

Across much of Canada, we have a finite window to perform a significant amount of mission-critical track maintenance work. Work blocks mean we do not operate trains when the work is happening, which reduces our capacity. These plans and disruptions are factored into the train plan.

在加拿大大部分地區，我們有一個有限的窗口來執行大量關鍵任務的軌道維護工作。工作封鎖意味著我們在工作進行時不運行火車，這會降低我們的運力。這些計劃和乾擾都被納入列車計畫中。

What made Q2 particularly challenging from a planning perspective was the complexity arising from both the amount of maintenance work that was done and that a lot of this work happened in close productivity in and around the directional running zone.

從規劃的角度來看，第二季特別具有挑戰性的是由於已完成的維護工作量以及大量工作發生在定向運行區域內和周圍的緊密生產力中而產生的複雜性。

As a rule, we do not schedule work blocks so close together because it requires trains to stop for two blocks within a short distance. This leads to congestion and crewing challenges during start-up operations. The urgent nature of some of the unplanned work meant that we had to do this anyway.

一般來說，我們不會將工作街區安排得太近，因為這需要火車在短距離內停靠兩個街區。這導致啟動營運期間出現擁塞和人員配備方面的挑戰。一些計劃外工作的緊迫性意味著我們無論如何都必須這樣做。

As Derek mentioned, with the maintenance issues in the BC South now behind us, we have seen strong improvements in overall car velocity and train speed. I want to add a final point which bears repeating.

正如德里克所提到的，隨著 BC 南部的維護問題現已過去，我們看到整體汽車速度和火車速度有了顯著提高。我想補充最後一點，值得重複。

The government-mandated duty and rest period rules in Canada, which have now been in place since the end of May 2023 have made crew scheduling very complicated. It amplifies the challenges to crew availability and productivity when we have disruptions, which include work blocks. This was even more so in the quarter because we didn't go a single week without some work being done in the BC South.

加拿大自 2023 年 5 月底起實施的政府規定的值班和休息時間規則使得機組人員的排班變得非常複雜。當我們遇到中斷（包括工作阻塞）時，它會放大對人員可用性和生產力的挑戰。本季情況更是如此，因為我們在 BC 南部沒有一周沒有完成一些工作。

In closing, we're looking at all levers to be able to increase crew availability, including looking for additional opportunities to extend crew runs. Our plan continues to produce positive results.

最後，我們正在尋找能夠提高機組人員可用性的所有手段，包括尋找額外的機會來延長機組人員的運行時間。我們的計劃繼續產生積極成果。

Origin's train performance remains solid at 93% quarter-to-date and destination train performance is approaching 70% quarter-to-date, in line with our expectations. Now you already heard Derek talk about what we are doing in the East and the South. In the West, we are resourcing for strong volumes and the network is well positioned moving into the third and fourth quarter.

本季至今，起始地列車性能保持穩定在 93%，目的地列車性能本季迄今接近 70%，符合我們的預期。現在您已經聽到德里克談論我們在東部和南部所做的事情。在西方，我們正在為強勁的銷售提供資源，並且網路在進入第三和第四季度時處於有利位置。

I'll now turn the call over to Remi. Remi your turn.

我現在將把電話轉給雷米。輪到雷米你了。

Thanks, Pat. (spoken in foreign language) CN's revenues grew by 7% in the second quarter compared to last year on stronger pricing, higher volume and favorable foreign exchange, offset in part by lower fuel surcharge.

謝謝，帕特。（以外語發言） CN 第二季度的收入與去年同期相比增長了7%，這主要得益於更強勁的定價、更高的銷量和有利的外匯，但部分被較低的燃油附加費所抵消。

Our RTMs were 7% higher, in line with plan, mostly from shipments of international intermodal, Canadian grain and refined petroleum. Revenue per RTM was down slightly on account of mix, specifically the longer average length of haul for these products. I'll emphasize that we are delivering same-store price ahead of our cost inflation.

我們的 RTM 成長了 7%，與計劃一致，主要來自國際聯運、加拿大穀物和精煉石油的運輸。由於混合因素，特別是這些產品的平均運輸距離較長，每個 RTM 的收入略有下降。我要強調的是，我們在成本上漲之前提供同店價格。

Before turning to the individual business units, I want to underscore some of the CN-specific growth initiatives that appear in the results. Selling service reliability for international intermodal through Western Gateways by leveraging the strategic benefit of the Rupert option in our train plan design and building our book of business accordingly.

在討論各個業務部門之前，我想先強調一下結果中出現的一些針對 CN 的成長計畫。透過在我們的列車計畫設計中利用魯珀特選項的策略優勢並相應地建立我們的業務手冊，透過 Western Gateways 銷售國際聯運的服務可靠性。

Moving frac sand from Wisconsin to Western Canada and hauling the resulting propane for export through Prince Rupert. Delivering incremental volume growth through Canadian and US crush plants with inbound grain and outbound renewable feedstocks and protein and inaugurating with our partners the first phase of the Greater Toronto area fuel facility. So overall, the business is growing on plan, except for some headwind around lumber and labor uncertainty.

將壓裂砂從威斯康辛州運送到加拿大西部，並運輸產生的丙烷通過魯珀特王子港出口。透過加拿大和美國的壓榨廠進口穀物和出口再生原料和蛋白質，實現產量增量成長，並與我們的合作夥伴一起啟動大多倫多地區燃料設施的第一階段。因此，總體而言，除了木材和勞動力不確定性方面的一些阻力外，業務正在按計劃增長。

Let's take a sector by sector look at the quarter on an FX-adjusted basis. Intermodal revenues grew by 6% with a 13% increase in overall RTMs, reflecting international up by 19%, but domestic down by 1%. Year-over-year growth in international is due to higher traffic through Western Gateways and key customer wins as we push to sell service reliability, but also the 2023 impact of the then imminent ILWU port strike.

讓我們在匯率調整後的基礎上逐一產業地審視本季。多式聯運收入成長 6%，整體 RTM 成長 13%，其中國際成長 19%，但國內下降 1%。國際業務的同比增長歸因於透過西部門戶的流量增加以及我們努力推銷服務可靠性而贏得的關鍵客戶，以及當時即將發生的 ILWU 港口罷工對 2023 年的影響。

The domestic business, on the other hand, faces more pressure due to market softness, combined with an oversupply of truck capacity. The resulting change in mix caused a 3% increase in average length of haul and therefore pushed revenue per RTM down by 6%.

另一方面，由於市場疲軟，加上卡車運力供過於求，國內業務面臨更大壓力。由此產生的組合變化導致平均運輸長度增加 3%，從而使每 RTM 收入下降 6%。

It's worth noting that intermodal is the most sensitive to the ongoing uncertainty around the labor situation with the TCRC. Accordingly, we saw volumes soften towards the end of the quarter as ocean lines and domestic shippers activated contingency plan, including port diversions and modal shifts.

值得注意的是，多式聯運對 TCRC 勞工狀況持續存在的不確定性最為敏感。因此，隨著遠洋航線和國內托運人啟動應急計劃，包括港口改道和運輸方式轉變，我們看到本季末的貨運量有所減弱。

Grain and fertilizer revenues and RTMs each rose by 7%, reflecting a stronger-than-expected 24% increase in Canadian grain shipments which was partially offset by lower shipments of export potash and US corn.

穀物和化肥收入以及 RTM 均成長 7%，反映出加拿大穀物出貨量成長 24% 強於預期，但部分被出口鉀肥和美國玉米出貨量下降所抵銷。

The strength of Canadian grain comes from destocking as farm optimism towards the new crop grows after low moisture levels earlier this year. Indeed, as the 2023, '24 crop year draw to a close, I'm pleased to note that we moved more grain in a smaller crop year, increasing our share.

加拿大穀物的強勁增長來自於去庫存，因為在今年早些時候的低濕度水平之後，農場對新作物的樂觀情緒有所增強。事實上，隨著 2023 年“24 作物年”接近尾聲，我很高興地註意到，我們在較小的作物年中轉移了更多穀物，增加了我們的份額。

Our potash volumes were lower on the other hand, as some of the business has largely, but not entirely naturally reverted to the Western terminal that experienced a lengthy outage last year.

另一方面，我們的鉀肥產量較低，因為部分業務已大部分但並非完全自然地恢復到去年經歷了長時間停運的西部碼頭。

Revenues for petroleum and chemicals were 14% higher in the quarter on a 12% increase in RTMs. This includes strong domestic demand for gasoline, diesel and jet fuel in Ontario and Quebec, higher shipments of polyethylene and more export NGL shipments from Northeast BC mostly through Rupert.

本季石油和化學品收入成長 14%，RTM 成長 12%。這包括安大略省和魁北克省對汽油、柴油和噴氣燃料的強勁國內需求、聚乙烯出貨量的增加以及主要透過魯珀特從不列顛哥倫比亞省東北部出口液化天然氣的出貨量增加。

Metals & Minerals revenues grew by 6% on 12% higher RTMs which reflects a 36% increase in frac sand for the robust drilling activity in Northeast BC and Alberta and the shorter breakup period. On the other hand, steel product shipments have been softer due to production inconsistencies, a weaker market and volume leakage to the oversupply truck market.

金屬和礦物收入增加了 6%，RTM 提高了 12%，這反映出由於不列顛哥倫比亞省東北部和艾伯塔省的強勁鑽井活動以及較短的解體期，壓裂砂增加了 36%。另一方面，由於生產不一致、市場疲軟以及供應過剩的卡車市場的銷售流失，鋼鐵產品的出貨量一直疲軟。

Revenues in automotive grew by 9% and RTMs by 12% due mainly to an increase in long-haul imports through Vancouver and North American origins into Western Canada, offset by lower short-haul due to Canadian plant retooling.

汽車收入成長了 9%，RTM 收入成長了 12%，這主要是由於透過溫哥華和北美原產地進入加拿大西部的長途進口量增加，但由於加拿大工廠重組而導致的短途進口量減少所抵消。

Forest product revenues improved by 4% in the quarter despite flat RTMs. While RTMs were 4% higher in Pulp and Paper, they slipped by 3% in lumber given the ongoing demand slump. Indeed, shipments were particularly soft in June.

儘管 RTM 持平，但本季林產品營收仍成長 4%。雖然紙漿和造紙的 RTM 上漲了 4%，但由於需求持續下滑，木材的 RTM 下降了 3%。事實上，六月的出貨量尤其疲軟。

The coal business lagged in the quarter with revenues down by 8% on an 11% drop in RTMs. Shipments fell in both Canada and the US reflecting lower available to ship inventory in Western Canada and throughput challenges in that corridor as well as lower thermal coal demand in the US.

本季煤炭業務表現落後，RTM 下降 11%，營收下降 8%。加拿大和美國的出貨量均下降，反映出加拿大西部的可用船舶庫存減少、該走廊的吞吐量挑戰以及美國動力煤需求的下降。

As we turn to the outlook, let me say first that our comments assume that we will have certainty around our labor situation by the end of summer and that there is no other Canadian labor disruption, either rail nor port.

當我們談到前景時，我首先要說的是，我們的評論假設我們將在夏末之前確定我們的勞動力狀況，並且加拿大沒有其他勞動力中斷，無論是鐵路還是港口。

We expect to carry intermodal momentum through our Western Gateways in the second half of the year and to come in higher over the strike affected same period last year and we will face headwinds with the overhang of uncertainty around further potential labor disruptions in the Canadian supply chain. We also see rising pricing pressure with domestic intermodal in light of the less than strong consumer and business sentiment in Canada and oversupply truck market.

我們預計下半年將透過我們的西部門戶保持多式聯運的勢頭，並比去年同期受影響的罷工更高，而且我們將面臨加拿大供應鏈進一步潛在勞動力中斷的不確定性帶來的阻力。鑑於加拿大消費者和商業信心不強以及卡車市場供應過剩，我們也看到國內多式聯運的定價壓力不斷上升。

While the prospects for the 2024, '25 Canadian crop year are brighter than expected, that will show up more with the Q4 fall harvest. US crop looks good overall despite some excess rain in certain areas, but the outlook for export demand is soft.

雖然 2024 年「25」加拿大作物年的前景比預期更加光明，但隨著第四季度秋季收成的到來，這一點將更加明顯。儘管某些地區降雨過多，但美國收成總體良好，但出口需求前景疲軟。

Fertilizer volumes will be lower than last year, given the 2023 opportunistic potash spot moves, but we should continue to see good momentum with crush capacity on both sides of the border.

鑑於 2023 年鉀肥現貨機會性變動，化肥產量將低於去年，但我們應該繼續看到邊境兩側壓榨能力的良好勢頭。

Our expectation is for continued growth in petroleum and chemicals during the second half, mainly from refined products to the GTA fuel facility and a new distribution platform in Prince Rupert and continued growth in propane exports through Rupert.

我們預計下半年石油和化學品業務將持續成長，主要是從精煉產品到 GTA 燃料設施和魯珀特王子港的新分銷平台，以及透過魯伯特的丙烷出口持續成長。

With active drilling in the BC Northeast and growing port terminal capacity, we expect frac sand shipments to stay strong. We also expect incremental minerals shipments, mainly lithium and gypsum to offset softer metals, especially for steel on commodity prices and excess trucks.

隨著不列顛哥倫比亞省東北部的活躍鑽探和港口碼頭容量的不斷增長，我們預計壓裂砂的出貨量將保持強勁。我們也預期礦物運輸量（主要是鋰和石膏）的增量將抵消金屬的疲軟，特別是大宗商品價格和卡車過剩帶來的鋼鐵。

Automotive RTMs should be flat in the second half of the year based on the mix of business as market fundamentals trend back toward pre-pandemic levels. The underlying market for lumber is weak and is likely to remain that way through the end of the year, which will drag on forest products volume.

隨著市場基本面恢復到疫情前的水平，根據業務組合，汽車 RTM 在今年下半年應該會持平。木材的基礎市場疲軟，並可能持續到今年年底，這將拖累林產品產量。

We expect to see the same run rate in US thermal coal shipments due to high domestic stockpiles and soft export demand, but there should be incremental production gains at various Western Canadian sites for metallurgical coal.

由於國內庫存高和出口需求疲軟，我們預計美國動力煤出貨量將保持不變，但加拿大西部多個冶金煤基地的產量應該會增加。

So overall, the business is growing on plan, except for some headwind around lumber and labor uncertainty. And for RTMs in the second half compared to last year, we should see a good uptick in the merchandise business, especially for petroleum products, chemicals and plastics, despite softer forest products.

因此，總體而言，除了木材和勞動力不確定性方面的一些阻力外，業務正在按計劃增長。對於下半年的 RTM 而言，與去年相比，我們應該會看到商品業務的良好增長，尤其是石油產品、化學品和塑料，儘管林產品疲軟。

Flat to slightly positive in bulk with Q4 grain, offset by lower potash and incrementally positive consumer products, thanks to international intermodal despite the headwind from the labor situation.

儘管勞動力情況不利，但第四季度散裝穀物持平至小幅上漲，但由於國際多式聯運的推動，鉀肥下降和消費產品的增量增長抵消了這一影響。

Before I pass it over to you Ghislain, I'd like to say that I'm very excited to join the CN team on this journey. First couple of months have been a lot of fun as I've plunged deep in the inner workings of the business to learn how the railroad runs, get to know the team and start to build crucial relationships with our customers, business partners, and communities.

在我把它交給 Ghislain 之前，我想說我很高興能加入 CN 團隊踏上這段旅程。最初的幾個月非常有趣，因為我深入了解了鐵路的內部運作，了解了鐵路的運作方式，了解了團隊，並開始與我們的客戶、業務合作夥伴和社區建立了重要的關係。

We look forward to working with my colleagues and to contribute my diverse experience to make a difference here and to drive value for the company and its shareholders. CN is an amazing business and the path ahead is very exciting.

我們期待與我的同事合作，貢獻我的豐富經驗，為這裡帶來改變，為公司及其股東創造價值。CN 是一家了不起的企業，未來的道路非常令人興奮。

Over to you Ghislain.

交給你吉斯蘭了。

(spoken in foreign language) Turning to slide 14. Q2 diluted EPS was down 1% versus last year, but up 5% on an adjusted basis after removing the impact of the loss on assets held for sale related to the transfer of the Quebec bridge to the Federal government.

（用外語發言）轉向投影片 14。第二季攤薄後每股收益較去年下降 1%，但在消除與魁北克大橋移交給聯邦政府相關的待售資產損失的影響後，調整後的每股收益增長 5%。

Adjusted OR increased by 160 basis points to 62.2%, mainly due to higher costs versus Q1 OR improved by 140 basis points. While volumes were very strong, up until the third week of May, we saw some meaningful softening in June as some intermodal international business diverted to US ports due to the possibility of labor disruption in Canada. At the same time, lumber prices plummeted to historical low levels and below breakeven. Overall, revenues were up 7% year-over-year.

調整後的 OR 增加了 160 個基點，達到 62.2%，主要是因為成本高於第一季度，OR 提高了 140 個基點。雖然截至 5 月第三週的交易量非常強勁，但由於加拿大勞動力可能出現中斷，一些多式聯運國際業務轉向美國港口，因此 6 月出現了一些明顯的疲軟。同時，木材價格暴跌至歷史低點並低於損益平衡點。總體而言，營收年增 7%。

Let me provide you with more details on the quarter. Fuel was a headwind of around $0.10 of EPS and was dilutive to the operating ratio by 130 basis points. Absent the fuel impact, the operating ratio from the underlying operations slipped 30 basis points year-over-year on account of the challenges mentioned by Pat and Derek. We continue to monitor fuel prices very closely. Applicable OHD rates, which drive fuel surcharge revenue decreased by 5% versus last year, while average fuel price for expenses increased 6% year-over-year in Q2.

讓我向您提供有關本季度的更多詳細資訊。燃油對 EPS 造成約 0.10 美元的不利影響，並稀釋了營運比率 130 個基點。由於帕特和德里克提到的挑戰，在沒有燃料影響的情況下，基礎業務的營運比率比去年同期下降了 30 個基點。我們繼續密切監控燃油價格。適用的 OHD 費率帶動燃油附加費收入較去年下降 5%，而第二季平均燃油價格較去年同期上漲 6%。

In terms of expenses, which I will speak to on an exchange adjusted basis, starting with labor, which was 13% higher versus last year on 2% higher average headcount, general wage increases and higher current service pension costs.

就支出而言，我將在匯率調整後的基礎上討論，首先是勞動力（與去年相比增加了 13%，平均員工人數增加了 2%）、總體工資增長和當前服務養老金成本增加。

We also saw higher short-term unproductive costs in the quarter related to deadheading, recrews and held away costs in the Vancouver corridor, which was amplified by the impact of the government mandated work rest rules.

我們也看到本季與溫哥華走廊的空頭、船員和滯留成本相關的短期非生產性成本上升，而政府強制工作休息規則的影響又放大了這一成本。

Fuel expense increased 11% versus the same period last year, mostly due to a 7% increase in gross ton miles combined with a 6% increase in price per gallon that I just mentioned, partly offset by a 2% improvement in fuel efficiency. Equipment rents was up 20%, driven by higher intermodal car hire and other increased 22% on higher incident costs.

燃油費用與去年同期相比增加了 11%，主要是由於總噸英里數增加了 7%，加上我剛才提到的每加侖價格上漲了 6%，部分被燃油效率提高 2% 所抵消。由於多式聯運汽車租賃費用增加，設備租金上漲了 20%，事故成本增加，其他租金上漲了 22%。

In other income, we benefited from roughly $30 million in higher earnings from the sale of property within a subsidiary. We generated around $1.5 billion of free cash flow year-to-date at the end of June, about $200 million lower than last year, mainly due to lower net cash from operating activities and higher capital expenditures.

在其他收入方面，我們因出售子公司內的財產而獲得了約 3,000 萬美元的較高收入。截至 6 月底，我們今年迄今產生了約 15 億美元的自由現金流，比去年減少約 2 億美元，主要是由於經營活動淨現金減少和資本支出增加。

Under our current share repurchase program, which runs from February 1, 2024, through January 31, 2025, we have repurchased close to 10 million shares for almost $1.7 billion as of the end of June.

根據我們目前的股票回購計畫（從2024年2月1日到2025年1月31日），截至6月底，我們已回購近1,000萬股股票，價值近17億美元。

Moving to Slide 15. Let me provide some visibility to our revised guidance for 2024. Note that our revised guidance assumes that we do not have a labor disruption and that the labor uncertainty is behind us by the end of August. Our revised guidance accounts for our year-to-date actuals as well as several unforeseen headwinds.

轉到投影片 15。讓我來介紹一下我們修訂後的 2024 年指南。請注意，我們修訂後的指導假設我們沒有出現勞動力中斷，並且勞動力的不確定性到 8 月底就已經過去。我們修訂後的指導考慮了今年迄今的實際情況以及一些不可預見的不利因素。

From a volume outlook perspective, the mere potential of a rail and port labor disruptions dampened overseas intermodal volume starting in June and we expect that to continue until the labor uncertainty is resolved. We've also adjusted our outlook for lumber and now expect a 2025 recovery given current commodity prices.

從成交量前景來看，鐵路和港口勞動力中斷的潛在可能性從 6 月開始就抑制了海外多式聯運的成交量，我們預計這種情況將持續下去，直到勞動力不確定性得到解決。我們也調整了對木材的展望，鑑於目前的大宗商品價格，我們預計 2025 年將出現復甦。

More broadly, overall industrial production remained slightly positive, but tepid in part because inflation has been persistent and interest rate cuts have yet to come or been more modest than expected.

更廣泛地說，整體工業生產仍然小幅增長，但不溫不火，部分原因是通膨持續存在，而降息尚未到來或降息幅度比預期更為溫和。

On the other hand, we're encouraged that early concerns about moisture levels for the Canadian grain crop have abated. We also continue to advance on our CN-specific growth initiatives in line with our expectations.

另一方面，令我們感到鼓舞的是，早期對加拿大穀物作物水分含量的擔憂已經減弱。我們也將根據我們的預期繼續推進針對中國的成長計畫。

Overall, we now expect to deliver RTM growth in the range of 3% to 5% versus 2023 compared to our previous assumptions of mid-single-digit growth. On costs, we are already seeing the positive impact of improved fluidity in Vancouver directional running corridor and expect year-over-year operating ratio improvement in the back half of the year.

總體而言，與我們先前中個位數成長的假設相比，我們現在預計 RTM 成長將比 2023 年成長 3% 至 5%。在成本方面，我們已經看到溫哥華定向運行走廊流動性改善的正面影響，並預計下半年營運率將比去年同期改善。

Our foreign exchange and WTI assumptions continue to be around $0.75 and US$80 to US$ 90 per barrel, respectively. Putting it all together, we are now targeting to deliver mid to high single-digit EPS growth in 2024. Our 2024 to '26 financial outlook of 10% to 15% CAGR remains unchanged.

我們的外匯和 WTI 假設繼續分別在每桶 0.75 美元和 80 美元至 90 美元左右。總而言之，我們現在的目標是在 2024 年實現中高個位數的每股盈餘成長。我們對 2024 年至 26 年複合年增長率 10% 至 15% 的財務前景保持不變。

In conclusion, let me reiterate a few points. Our CN-specific growth opportunities are coming online as expected. The network is fluid with car velocity as well as seasonal levels. We are delivering industry-leading service to our customers and we remain intensely focused on delivering growth at low incremental costs.

最後，讓我重申幾點。我們針對中國的成長機會正如預期出現。該網路隨著汽車速度和季節水平的變化而變化。我們正在為客戶提供領先業界的服務，並且我們仍然專注於以低增量成本實現成長。

Back to you, Tracy.

回到你身邊，特雷西。

Thanks, Ghislain, and over to you, Juilianne. We'll take questions now.

謝謝，吉斯蘭，還有你，茱麗安娜。我們現在就提問。

So we will now begin the question and answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Chris Wetherbee, Wells Fargo.

克里斯‧韋瑟比，富國銀行。

Hey, thanks. Good afternoon, guys. Maybe, Ghislain, I can pick up where you ended there on the operating ratio as you think about the second half of the year. So I guess I'm just curious how much of what you saw in the second quarter related to some of the cost and congestion around maintenance carries over, if any, into the third and fourth quarters? And I guess thinking in that context, how would we expect sort of that OR to progress relative to normal seasonality? I guess, in other words, is there some cost embedded in 2Q that we could see naturally come out and think more about things seasonally from there? Just want to get a sense of how to think about profitability.

嘿，謝謝。下午好，夥計們。也許，吉斯蘭，當你思考下半年時，我可以回顧一下你最後提到的營運比率。所以我想我只是好奇你在第二季度看到的與維護相關的一些成本和擁堵有多少（如果有的話）會延續到第三和第四季？我想在這種情況下思考，我們會如何預期這種情況或相對於正常季節性的進展？換句話說，我想，第二季度是否存在一些成本，我們可以自然地看到這些成本，並從那裡更多地考慮季節性的事情？只是想了解如何考慮獲利能力。

Hey, Chris, this is Tracy. I'll start on that, and then I'll hand it over to Ghis. So this was the issue with the work blocks and maintenance program in the Vancouver corridor, where the grain was moving was something that largely happened at the tail end of Q2. And so those work blocks have moved off now. And as you heard Derek say that the railroad's back to operating at normal levels from an on-time performance and from a velocity perspective. In fact, I think in the last seven days or so, the railroad overall is now running about 216 car miles per day versus the last year about 210. So the railroads operating well right now. If we think about OR and where we'll end up in the quarter. Now if we assume that there is, as you heard Ghis say, no labor outage this year and no significant impact from fires, we are watching this Jasper situation that we've got going on right now closely. But if there's no major impact from fires, then you'll see us come in the second half, Q3 and Q4 on an operating ratio of sub 60, as you would expect us to do. Ghis, anything to add on?

嘿，克里斯，這是崔西。我將從這個開始，然後將其交給 Ghis。因此，這就是溫哥華走廊的工作區和維護計畫的問題，那裡的穀物移動主要發生在第二季末。所以這些工作塊現在已經離開了。正如您聽到德里克所說，從準點率和速度的角度來看，鐵路已恢復正常水平運作。事實上，我認為在過去 7 天左右的時間裡，鐵路總體每天運行約 216 英里，而去年約為 210 英里。所以鐵路目前運作良好。如果我們考慮 OR 以及我們在本季度的最終結果。現在，如果我們假設，正如您聽到吉斯所說，今年沒有勞動力中斷，也沒有火災造成的重大影響，那麼我們正在密切關注目前正在發生的賈斯珀情況。但如果火災沒有造成重大影響，那麼您會看到我們在下半年、第三季和第四季的營運比率低於 60，正如您期望我們所做的那樣。吉斯，還有什麼要補充的嗎？

Yeah. Maybe first of all, by the way, Chris, congratulations on your new position. And let me give you a few examples of some of the costs that we're referring to. And this is mostly related to the what we call the Mountain South subregion, which is really the Vancouver corridor that Pat was referring to. So our recrew cost per GTM over Q2 was as high as 130%. Our deadhead cost per GTM was up 37%, and our held away cost per GTM was up 74%. So obviously, these costs are coming way more in line now as some of this work is behind us in terms of the unplanned work blocks and so on. So you'll see -- you should see a much better Q3 than what we saw in Q2. Thanks for the question.

是的。也許首先，順便說一句，克里斯，恭喜你獲得新職位。讓我舉幾個我們提到的一些成本的例子。這主要與我們所說的山區南部次區域有關，這實際上是帕特所指的溫哥華走廊。因此，第二季我們每 GTM 的人員成本高達 130%。每個 GTM 的固定成本上升了 37%，每個 GTM 的滯留成本上升了 74%。顯然，這些成本現在變得更加一致，因為其中一些工作在計劃外工作區塊等方面已經落後於我們。所以你會看到——你應該看到一個比我們在第二季度看到的更好的第三季。謝謝你的提問。

Cherilyn Radbourne, TD Cowen.

謝裡琳·拉德伯恩，TD·考恩。

Thanks very much. Good afternoon. My question is for the operating team. Could you speak to, number one, if we set aside the planned and unplanned maintenance outages, should investors feel comfortable that Vancouver, Edmonton corridor, otherwise has enough capacity to handle the record volumes that you saw in the quarter? And I guess, number two, are you pleased with how the team managed the disruption and the pace of the recovery or is there something that in hindsight you think you could have done differently? Thanks.

非常感謝。午安.我的問題是針對營運團隊的。第一，如果我們拋開計劃內和計劃外的維護中斷，投資者是否會感到放心，溫哥華、埃德蒙頓走廊有足夠的能力來處理您在本季度看到的創紀錄的交易量？我想，第二，你對團隊處理中斷的方式和恢復的速度感到滿意嗎？謝謝。

Okay. I'll take that one. And I would say, first thing is that when you look at the volume that moved to Vancouver, we talk about record volume. And our share of that volume was two-thirds of the trains running through the DRZ we're seeing trains. So much bigger impact to CN through this corridor. I am pleased with, as we plan work blocks, we coordinate with our partners, we plan the material to be distributed. We plan the maintenance employees, the engineering department employees the gang to be in place to do this work. So as you look at this, in the way we do the planning. We try to keep work blocks separated where they're not in such close proximity to one another. We did a lot of that work. We had some unplanned work that needed to be done and we had these work blocks closer to one another than we would have liked to see as it relates to our network and getting into the DRZ. What I would do differently, I would say, a lot of the work that we are doing and where we're investing is to get ourselves out of unplanned work blocks. We're doing the work in a manner that we want to minimize the unplanned work blocks. We had an emergent rail issue that we had to deal with. That was right adjacent to the DRZ. That's a takeaway for us is to make sure that we plan our work that we're doing our best to stick to the plan and not have unplanned work blocks. That would be one thing that we would change. I am pleased with the capacity in that corridor, though as we see, as we've lifted out of the work block, the maintenance season, we have seen a significant uptick in the speed and velocity. In fact, we're approaching last year's levels of both train speed and car velocity. So pleased with where we're trending. And, yeah, we would certainly not plan to have those blocks in such close proximity to wrap it up.

好的。我會接受那個。我想說，首先，當你看到轉移到溫哥華的交易量時，我們談論的是創紀錄的交易量。我們所佔的份額是我們看到的穿過 DRZ 的火車的三分之二。通過這條走廊對 CN 的影響就大得多。我很高興，因為我們計劃工作區塊，我們與我們的合作夥伴協調，我們計劃分發的材料。我們計劃維護員工、工程部員工小組就位做好這項工作。所以當你看這個時，我們的規劃方式是這樣的。我們嘗試將工作區塊分開，使它們彼此不那麼接近。我們做了很多這樣的工作。我們有一些計劃外的工作需要完成，而且這些工作區塊彼此之間的距離比我們希望看到的更近，因為它與我們的網路和進入 DRZ 相關。我想說的是，我會採取不同的做法，我們正在做的許多工作和我們正在投資的地方都是為了讓自己擺脫計劃外的工作障礙。我們正以盡量減少非計劃性工作障礙的方式開展工作。我們遇到了必須處理的緊急鐵路問題。那是緊鄰 DRZ 的地方。對我們來說，一個要點是確保我們計劃我們的工作，並盡最大努力堅持計劃，而不會有計劃外的工作障礙。這將是我們要改變的一件事。我對走廊的容量感到滿意，儘管正如我們所看到的，當我們離開工作區、維護季節時，我們看到速度和速度顯著上升。事實上，我們正​​在接近去年的火車速度和汽車速度水平。對我們的趨勢非常滿意。是的，我們當然不會計劃讓這些街區如此接近來結束它。

And I'll just add a little bit to that, Cherilyn. So we're being quite thoughtful. We don't sell capacity that we don't have. And so we've been thoughtful on how we've constructed this portfolio. Remi has put together this international portfolio. We know that what grain is coming, what the grain crop is, this quarter can handle that capacity. We have turned away business in the Vancouver corridor that wouldn't fit either our network or capacity. And so the work blocks in this particular quarter were significant enough particularly the unplanned work blocks that it had an unexpected impact. Going forward, we've sold the capacity that we have.

我只想補充一點，Cherilyn。所以我們考慮得很周到。我們不會出售我們沒有的產能。因此，我們一直在深思熟慮如何建立這個投資組合。Remi 整理了這個國際作品集。我們知道即將到來的糧食是什麼，糧食作物是什麼，本季可以處理產能。我們已經拒絕了溫哥華走廊不適合我們的網路或容量的業務。因此，這個特定季度的工作區塊非常重要，特別是計劃外的工作區塊，它產生了意想不到的影響。展望未來，我們已經出售了現有的產能。

Thank you.

謝謝。

Go ahead. Thanks.

前進。謝謝。

Scott Group, Wolfe Research.

斯科特集團，沃爾夫研究。

Hey, thanks. Good afternoon. So I just want to clarify the guidance now assumes continued diversions, but no strike. Is that right? And then just bigger picture, I just want to understand what's going on with price. You guys talked about price above inflation, but cents per RTM are down slightly, why aren't we seeing better yield growth, given what you're talking about is still inflation plus price? When do we start to see that? Thank you.

嘿，謝謝。午安.因此，我只想澄清一下，現在的指導意見假設持續轉移，但沒有罷工。是對的嗎？然後從更大的角度來看，我只想了解價格的變化。你們談論的是價格高於通膨，但每 RTM 的美分略有下降，鑑於你們談論的仍然是通膨加價格，為什麼我們沒有看到更好的收益率成長？我們什麼時候開始看到這一點？謝謝。

I'll take the first one. First, Scott. And so what we're -- for the guidance going forward, we are assuming, as you said, that there's no labor outage. So there's no strike or lockout. As far as the diversion, there are diversions taking place now. We're assuming that we get certainty on labor by say the end of August and that those diversions continue at the level that they are, they don't come back immediately, but they don't get any worse. And so we are expecting that it will take a period of time to get that international business back routed up to the Canadian ports, hopefully, not as long as it did after the strike on the ports last year, but that's what we're assuming and when we reverted to guidance. And I'm sorry, I don't recall the second part. Go ahead, Remi.

我就拿第一個。首先，斯科特。因此，對於未來的指導，我們假設，正如您所說，沒有勞動力中斷。所以沒有罷工或停工。至於改道，目前正在發生改道。我們假設我們在八月底之前就得到了勞動力的確定性，並且這些轉移繼續保持在現有水平，它們不會立即回來，但也不會變得更糟。因此，我們預計國際業務需要一段時間才能恢復到加拿大港口，希望不會像去年港口罷工後那麼長，但這就是我們的假設當我們恢復指導時。抱歉，我不記得第二部分了。來吧，雷米。

It was on revenue per RTM. So I can take that. So I did mention, and you pointed out, Scott, that we are delivering same-store price ahead of rail inflation. What we see, though, is that the mix of business has changed in favor largely of bulk. So in this case, it was a lot of frac sand and Canadian grain, in particular, and more international business for the intermodal stuff. So that shows up as a drag on RTM because our average length of haul has gone up across the business by 5%. So the denominator widens and that dilutes the yield. Simple answer.

它是基於每 RTM 的收入。所以我可以接受。所以我確實提到過，斯科特，你也指出，我們在鐵路通膨之前提供同店價格。不過，我們看到的是，業務組合已經發生變化，主要有利於散裝業務。因此，在這種情況下，特別是大量的壓裂砂和加拿大穀物，以及更多的聯運貨物的國際業務。因此，這對 RTM 造成了拖累，因為我們整個業務的平均運輸長度增加了 5%。因此，分母變寬，從而稀釋了收益率。簡單的回答。

Thanks for your question.

謝謝你的提問。

Steve Hansen, Raymond James.

史蒂夫漢森，雷蒙德詹姆斯。

Yes, good afternoon. Thanks, guys. Appreciate the time. Just as you contemplate this new grain harvest that's coming in, we've seen revisions to the upside now at least once and probably another to come, we'll see. How do you think about preparing for that relative to some of these constraints that have existed? It sounds like you feel confident and being able to handle the volumes. But is there any additional preparations will need to make to handle this harvest if it is indeed a big one?

是的，下午好。多謝你們。珍惜時間。正如您考慮即將到來的新糧食收成一樣，我們現在至少已經看到了一次上行修正，而且可能還會有另一次修正，我們拭目以待。相對於已經存在的一些限制，您如何看待為此做好準備？聽起來你很有信心並且能夠處理這些問題。但如果收穫確實很大，是否需要做任何額外的準備來處理這項收穫？

Well, we hope it is a big one, and we're ready for that. Steve, thanks. I would say this that there's more than one port that the grain moves through. So we've got Vancouver, which is an important port for grain. We've also got Rupert, Thunder Bay and then into Eastern Canada. So as we think about how we're going to put that portfolio together, we'll use all of those are great ways to use our network, and we'll make sure that we focus on getting the right volumes in the right corridors. Thanks for the question.

好吧，我們希望這是一個大事件，我們已經準備好了。史蒂夫，謝謝。我想說的是，穀物經過的港口不只一個。所以我們有溫哥華，它是一個重要的穀物港口。我們還有魯伯特、桑德貝，然後進入加拿大東部。因此，當我們考慮如何將這些產品組合在一起時，我們將使用所有這些都是使用我們網路的好方法，並且我們將確保專注於在正確的走廊中獲得正確的數量。謝謝你的提問。

Thank you.

謝謝。

Ken Hoexter, Bank of America.

肯‧霍克斯特，美國銀行。

Hey, great. Good afternoon. Just thinking about the outlook shifting to mid-single-digit to high-single-digit earnings. You've obviously got a big uptick coming in third quarter, but maybe some concern on yields with better grain. What are the upside, downside risks in that target? And then does the unproductive costs that you talked about, do they accelerate as business returns and labor gets more stretched or not necessarily? Thanks.

嘿，太棒了。午安.只是考慮一下前景將轉向中個位數到高個位數收益。顯然，第三季產量將大幅上升，但也許對更好的穀物產量有所擔憂。該目標的上行和下行風險是什麼？那麼，您談到的非生產性成本是否會隨著業務回報和勞動力變得更加緊張而加速，或者不一定？謝謝。

Thanks, Ken. I'll start that off and then I'll hand it over to Ghis or Remi, if you have some comments. On the unproductive costs, we experienced them, as we said earlier in a couple of ways. One is that we did have lighter coal and grain down in the US, we were resourced to handle more volume. So we had some unproductive costs there, a little bit less in the East, but a little bit in the East. And so we're taking some action on those. And as Derek went through, stopped hiring, we're offering voluntary furloughs, and we're coming and we'll continue to adjust as we look forward to make sure that the resources, crews, but also all the equipment are matched for the volumes that we are expecting. If we look at the West the unproductive labor or sorry labor productivity issue was more related to the work blocks. And so the lumpiness of how that volume was moving through the quarter. You heard Ghis go through kind of the recrews and some of the deadhead issues that we had. So as the work blocks have come off there, then that is adjusting back. We do have an ongoing structural issue with the duty and work rest rules that have come in. As you know, we've said that this is costing us in Canada. In the year that it's been in place about $100 million, $100 plus million annualized. We're working through how, basically, this is appearing for us and crew availability. And this is something that we've been attempting to address in the collective bargaining. And if we can't do that, then there's some self-help that we're going to do with some of the local agreements that would address some of the redundancy that's been created there. So the temporary issues on labor productivity, we're all over those. The more structural one around the work rest rules and we'll deal with them as we go forward in our labor negotiations.

謝謝，肯。我將首先開始，然後如果您有任何意見，我會將其交給 Ghis 或 Remi。關於非生產性成本，我們經歷過它們，正如我們之前在幾個方面所說的那樣。一是我們在美國確實有較輕的煤炭和穀物，我們有資源來處理更多的數量。所以我們在那裡有一些非生產性成本，在東部稍微少一點，但在東部也有一點。所以我們正在對這些採取一些行動。隨著德里克的經歷，停止招聘，我們提供自願休假，我們即將到來，我們將繼續調整，因為我們期待確保資源、人員以及所有設備都與我們所期望的數量。如果我們看看西方，非生產性勞動或令人遺憾的勞動生產力問題與工作區更相關。因此，這個季度的銷售變化也很不穩定。你聽說吉斯經歷了一些工作人員和我們遇到的一些無用的問題。因此，當工作障礙已經解決時，那就需要進行調整。我們確實存在與已出台的值班和工作休息規則有關的持續結構性問題。如你所知，我們說過這讓加拿大付出了代價。這一年，它已經投入了大約 1 億美元，每年 100 美元加 100 億美元。我們正在研究，基本上，這對我們和船員的可用性來說是如何出現的。這是我們一直試圖在集體談判中解決的問題。如果我們做不到這一點，那麼我們將透過一些當地協議來進行一些自助，以解決那裡產生的一些冗餘問題。因此，關於勞動生產力的臨時問題，我們已經解決了。圍繞工作休息規則的更具結構性的規則，我們將在勞資談判中進行處理。

Tracy, I think, you covered it well. Maybe just one more point, Ken, is when you look at fuel, I mean, we've talked about fuel impact this quarter about $0.10, and we had an even bigger impact in Q1, as you know. So with fuel prices, i.e., OHD and WTI remains where it is, then you can expect a fuel headwind on a year-over-year basis in the second half -- in the same quarter as the first half of this year, but probably more skewed to Q4 versus Q3. So that's something else to take into consideration in our revised guidance. Thanks for the question.

崔西，我想，你講得很好。Ken，也許還有一點是，當您關注燃料時，我的意思是，我們已經討論了本季燃料影響約 0.10 美元，正如您所知，我們在第一季度產生了更大的影響。因此，由於燃料價格（即 OHD 和 WTI 保持不變），您可以預期下半年燃料將出現同比逆風 - 與今年上半年相同的季度，但可能與第三季度相比，第四季度更加傾斜。因此，這是我們修訂後的指南中需要考慮的其他因素。謝謝你的提問。

Thank you.

謝謝。

Konark Gupta, Scotiabank.

科納克·古普塔，豐業銀行。

Thanks for taking my question. Just wanted to understand, what drove the increase in number of unplanned work blocks during the second quarter? And where are you performing the planned work blocks now?

感謝您提出我的問題。只是想了解，是什麼導致第二季計劃外工作區塊數量增加？您現在在哪裡執行計劃的工作區塊？

Okay. I'll take that. So there were unplanned work blocks both in the DRZ and just adjacent to the DRZ. And the way we plan to work is, I mentioned we have this finite window of time where as the weather breaks, we typically start in Western Canada, where the weather breaks first, we move our way East across the network, and we distribute the material and we aligned the engineering gains, work schedules around that progression. As we've made that progression, we continue East and our plan is we're now East of Edmonton with one return cycle to the West that we have to make. And our plan is to get off of that corridor before the fall rush and the grain harvest. We want to be off of the core route in Western Canada, that's the way that we plan it. We had some rail issues, as I said before, we had to deal with on our subject adjacent to the DRZ, and we had some unplanned work blocks in the DRZ as well.

好的。我會接受的。因此，DRZ 內和 DRZ 附近都存在計劃外的工作區塊。我們計劃的工作方式是，我提到過，我們有一個有限的時間窗口，當天氣變化時，我們通常從加拿大西部開始，那裡天氣最先變化，我們通過網絡向東移動，然後我們分發材料，我們圍繞著這項進展調整了工程成果和工作時間表。當我們取得這一進展時，我們繼續向東行駛，我們的計劃是我們現在位於埃德蒙頓以東，並且必須進行一次向西返回的循環。我們的計劃是在秋季高峰和穀物收穫之前離開那條走廊。我們希望偏離加拿大西部的核心路線，這就是我們的計劃。正如我之前所說，我們遇到了一些鐵路問題，我們必須處理 DRZ 附近的主題，而且我們在 DRZ 中也有一些計劃外的工作區塊。

Okay. Thanks. And just a quick clarification question. What are you assuming just for wage inflation related to the pending TCRC deal in the new guidance?

好的。謝謝。只是一個快速澄清的問題。對於新指南中懸而未決的 TCRC 協議相關的工資上漲，您有何假設？

Listen, we're in the middle of, as you know, negotiations in a process there. So probably inappropriate for us to comment directly. But we have settled a number of agreements in Canada this year. And I think you're looking at a pattern that looks somewhere in the 3% range. So that wouldn't be a bad number to expect here. Thanks for the question, Konark.

聽著，正如你所知，我們正在那裡進行談判。所以我們可能不適合直接發表評論。但今年我們在加拿大達成了多項協議。我認為您看到的模式看起來在 3% 的範圍內。因此，這並不是一個糟糕的數字。謝謝你的提問，科納克。

Thank you.

謝謝。

David Vernon, Bernstein.

大衛‧佛農，伯恩斯坦。

Hey, good afternoon, team. Thanks for taking the question. So I just wanted to press on the issue of the three year guide kind of keeping the target at 10% to 15% compound. That seems like you got to be kind of towards the higher end for two years in a row to get to the midpoint of that range. What's the thinking behind kind of keeping the bar that high? And maybe as a follow-up to that like how much of the -- how much of the -- have you quantified the exact dollar cost of some of the maintenance delays and some of the book around stuff? Just trying to figure out like how much of '25 jump up is just getting back to what we've had in bad guys in '24. Just trying to get my head around the cadence for that the three-year guide holding up the 10% to 15% compound. Thanks.

嘿，下午好，團隊。感謝您提出問題。因此，我只想強調三年期指導方針的問題，即將複合目標保持在 10% 至 15%。看來你必須連續兩年接近高端才能達到該範圍的中點。保持如此高的標準背後的想法是什麼？也許作為後續行動，你有多少——多少——量化了一些維護延遲和一些書籍相關內容的確切美元成本？只是想弄清楚 25 年的跳躍有多少只是回到了我們在 24 年的壞人中所經歷的。我只是想弄清楚三年期指南維持 10% 至 15% 複合成長率的節奏。謝謝。

Thanks, David. So our three-year plan remains in place. And what I'm really happy about is how the growth plan is coming in, particularly the CN initiatives that Remi went through that are progressing very well. And I know that he and his team are continuing to fill that pipeline. The economic recovery, you remember that we said that it was -- the growth was 50% organic, the underlying economy and 50% and the CN specific initiatives. The economic recovery is advancing a little bit more slowly. We're seeing that in a few of the sections that Remi spoke about, but it's going to come. And once we get through this labor issue, you'll see the full impact of the growth plan. Beyond that, the railroad is running really well. What happened with the work blocks in Vancouver aside. And Pat and Derek are working on the next level of efforts on network ops, on transportation, on engineering productivity, and they're going to continue to advance the performance on this. We do have -- so we look forward, the plan is coming -- it's working -- it's looking good. The one structural issue that we have is this the duty and rest period rules and the redundancies that we have in there. And so we are dealing with that this year as we look at by the -- to the collective agreements or through some of the self-help that I talked about. So we remain pretty comfortable with the plan. Ghis, do you have anything to add?

謝謝，大衛。所以我們的三年計劃仍然有效。我真正高興的是成長計畫的實施，特別是 Remi 所經歷的 CN 計畫進展順利。我知道他和他的團隊正在繼續填補這一空白。經濟復甦，你記得我們說過——成長是 50% 的有機成長，基礎經濟和 50% 以及 CN 的具體舉措。經濟復甦進展稍顯緩慢。我們在雷米談到的一些部分中看到了這一點，但它將會到來。一旦我們解決了勞工問題，您就會看到成長計畫的全部影響。除此之外，鐵路運行得非常好。撇開溫哥華工作區發生的事情不談。帕特和德里克正在致力於網路運營、運輸和工程生產力方面的下一階段工作，他們將繼續提高這方面的效能。我們確實有——所以我們期待，計劃即將到來——它正在發揮作用——看起來不錯。我們面臨的一個結構性問題是值班和休息時間規則以及我們在那裡的裁員。因此，今年我們正在透過集體協議或我談到的一些自助來處理這個問題。所以我們對這個計劃仍然很滿意。吉斯，你還有什麼要補充的嗎？

No, covered it well.

不，覆蓋得很好。

Okay. Thanks, David.

好的。謝謝，大衛。

Just a quick follow-up. I mean, Ghis, as you think about that, the duty and rest stuff like that will be in the base for next year, but how much of the incremental leverage did it absorb this year?

只是快速跟進。我的意思是，吉斯，正如你所想，類似的關稅和休息費用將計入明年的基礎，但今年它吸收了多少增量槓桿？

Well, as we quantified, if you remember, when it came in, we said that this could be an impact as much as $100 million on a yearly basis. I would tell you that in reality, it's probably a little higher than that. And as Tracy mentioned, the team is working very hard to alleviate some of this. And this is really about crew availability. That's really what we're trying to work and we're trying to work with our unions to do exactly that.

好吧，正如我們所量化的，如果您還記得的話，當它出現時，我們說這可能每年產生高達 1 億美元的影響。我會告訴你，實際上，它可能比這個高一點。正如特雷西提到的，團隊正在努力緩解這個問題。這實際上與船員的可用性有關。這確實是我們正在努力做的事情，我們正在努力與我們的工會合作來做到這一點。

Alright. Thank you for that added color.

好吧。感謝您添加的顏色。

Fadi Chamoun, BMO Capital Markets.

Fadi Chamoun，BMO 資本市場。

Thank you. Good afternoon. I just want to go back to this issue on the Western Corridor. I mean you have the volume opportunity that I think are the envy of most of your peers. And again, this quarter, on whatever $185 million of revenue, we saw a $36 million drop to operating income. And it sounds like the Vancouver Edmonton corridor was your biggest headwind this quarter. But kind of -- if you think about this over the next three years, is there a kind of structural bottleneck in that corridor? Is there -- because it feels like every cycle, we get into some problem in that corridor. And ultimately, you get into these issues. Is there a kind of more durable solution that is required to allow that corridor to perform better expansion in capacity, maybe a different way of how you block the traffic with customer. I'm just wondering, is this kind of really just an isolated Q2 issue, volumes, usually, sometimes they come as planned, but most of the time, they don't come at planned. Like how do you going to solve for that over the medium term?

謝謝。午安.我只想回到西部走廊這個問題。我的意思是，你擁有大量的機會，我認為這是大多數同行羨慕的。同樣，本季我們的營業收入為 1.85 億美元，但營業收入卻下降了 3,600 萬美元。聽起來溫哥華埃德蒙頓走廊是本季最大的阻力。但是，如果你考慮一下未來三年的情況，這條走廊是否存在某種結構性瓶頸？有沒有——因為感覺就像每個週期，我們都會在走廊上遇到一些問題。最終，你會遇到這些問題。是否需要一種更持久的解決方案來讓走廊更好地擴展容量，也許是一種不同的方式來阻止與客戶的交通。我只是想知道，這是否真的只是一個孤立的第二季度問題，通常，有時它們會按計劃出現，但大多數時候，它們不會按計劃出現。例如中期內你將如何解決這個問題？

Thanks, Fadi, for the question. I think there's two ways to think about this. One is that we continue -- part of our program, our capital program this year is focused on this corridor. We continue to put money into this quarter to make sure that where we can improve capacity and capability that we do and both railroads are working very well together to make sure that we can make the most by cooperating, be at the next level of capacity. I know you've been in the Vancouver area and you understand some of that. The other piece of this is that there are practically limitations on how much more that corridor in Vancouver can grow. And so the benefit that we have is a very open Rupert corridor that can handle not only grain, but a lot of the other commodities, and we've got a lot of our growth focused in that area. If it comes to grain, we talked about and you would well know the various quarters that can travel into Thunder Bay and Eastern Canada as well. So I think we'll continue to make -- Vancouver is very important. We're going to continue to work on the productivity in that. We will not oversell our capacity in that corridor and we have options for where we grow. We're very fortunate in that regard. Thanks for the question.

謝謝法迪的提問。我認為有兩種方式來思考這個問題。一是我們繼續——我們計劃的一部分，我們今年的資本計劃重點關注這條走廊。我們將繼續在本季度投入資金，以確保我們可以提高運力和能力，而且兩家鐵路公司都能很好地合作，以確保我們能夠透過合作獲得最大收益，達到更高的運力水平。我知道您去過溫哥華地區並且您了解其中一些。另一方面，溫哥華走廊的發展實際上受到限制。因此，我們擁有的好處是一個非常開放的魯珀特走廊，不僅可以處理穀物，還可以處理許多其他商品，而且我們的許多增長都集中在該領域。如果說到穀物，我們已經討論過，您也會很清楚可以進入桑德貝和加拿大東部的各個地區。所以我認為我們將繼續使溫哥華非常重要。我們將繼續致力於提高這方面的生產力。我們不會過度誇大我們在該走廊的產能，而且我們可以選擇在哪裡發展。在這方面我們非常幸運。謝謝你的提問。

Just a quick follow-up. I mean given what you just described and the supply demand situation in that corridor. Is there a pricing lever that you can lean on a little bit more going forward?

只是快速跟進。我的意思是考慮到您剛才所描述的以及該走廊的供需。是否有一個定價槓桿可以讓您在未來更加依賴？

I would say that Remi and his team are all over that. We're being very thoughtful around how we sell our capacity to all of our customers. Thanks, Remi. Sorry, thanks, Fadi.

我想說，雷米和他的團隊都致力於此。對於如何向所有客戶出售我們的產能，我們非常深思熟慮。謝謝，雷米。抱歉，謝謝，法迪。

Brian Ossenbeck, JPMorgan.

布萊恩‧奧森貝克，摩根大通。

Yes, thanks. Good afternoon. I just wanted to maybe ask a follow-up on the Western part of the network, maybe it's for Remi, but you certainly need to invest to keep up with the growth there, but in the East and maybe in the South, you need to invest to sort of attract the growth. So anything that you would highlight as being up and coming or something a little more exciting on the East and the South? I know it's been an area the company has been trying to grow for some time and the volume will go where it will go. And then just as a quick follow-up maybe for Tracy, can you give us a sense as to whether or not you can get that same structural relief for the work rest rules if it's negotiated or if it's self-help? Thank you.

對了謝謝。午安.我只是想問一下網路西部地區的後續情況，也許是為了雷米，但你肯定需要投資才能跟上那裡的成長，但在東部，也許在南部，你需要投資以吸引成長。那麼，您認為東部和南部有什麼值得關注的新興事物或更令人興奮的事情嗎？我知道這是該公司一段時間以來一直在努力發展的領域，並且銷量將會成長。然後，作為特雷西的快速跟進，您能否讓我們了解一下，如果是透過談判還是自助，您是否可以獲得與工作休息規則相同的結構性救濟？謝謝。

Remi, do you want to make some comment first and I'll come in behind.

雷米，你想先發表評論嗎？

Thanks. Maybe I'll just start. So a couple of things that I think are interesting, the Gulf option for us is a good one for the Intermodal business. So I think that there's headroom there. The corridor, Chicago to the Gulf is very efficient the way that my operating colleagues run it. We also are in the process of integrating the INR to extend our reach and bring more volume on our rails. So I think there's upside to chase there as well.

謝謝。也許我會開始。因此，我認為有幾件事很有趣，海灣選項對我們來說對於多式聯運業務來說是一個很好的選擇。所以我認為那裡還有空間。芝加哥至海灣的走廊按照我的營運同事的運作方式非常有效率。我們也正在整合印度盧比，以擴大我們的覆蓋範圍並增加我們的軌道上的交易量。所以我認為那裡也有追逐的好處。

Yeah. Thanks Remi. And I would also say that we are hopeful and expecting this week that we will get some good news on the Iowa Northern acquisition. And so that also is going to add to our Southern quarter efforts. Remi talked about the Gulf. We've got some good chemical business down there. We've got the Falcon business that we're continuing to grow. So lots of effort on the South. Really the impact in this quarter. We would normally be moving grain and coal and we had resource to move grain and coal and that's kind of the gap. Nonetheless, building the density in the South remains one of our key strategic initiatives. As far as the duty rest period rules, all of what we're contemplating, whether it is within the collective bargaining, whether it's some efforts that we can take outside of that would keep us fully compliant with both the spirit and the rules that the federal government put out when it comes to rest and safety and everything else. What we've experienced is all of this has happened is a high level of redundancy in the stacking of our collective agreements with the local agreements with the duty and with the new rules issued by the federal government last year. And so we need to make this simpler and there's things that we can do to reduce that redundancy. But as I said, in all cases, we'll stay compliant with the federal regulations. And there are scenarios that we can do this through the collective bargaining at the table and that's what we would like to do. We are hopeful and there's still our base plan that we would get a negotiated outcome a negotiated agreement. That is the best way for us and for the union to kind of deal with the issues that each one of us wants to deal with. So we're ready for those discussions when they're ready to start up again. Thanks for your question.

是的。謝謝雷米。我還想說，我們滿懷希望並期待本週我們能得到一些有關愛荷華北方收購的好消息。因此，這也將增加我們南部地區的努力。雷米談到了海灣。我們那裡有一些不錯的化學業務。我們的獵鷹業務正在持續成長。所以在南方付出了很多努力。確實是本季的影響。我們通常會運輸穀物和煤炭，而我們有資源來運輸穀物和煤炭，這就是差距。儘管如此，提高南方的人口密度仍然是我們的關鍵策略舉措之一。就值班休息期的規則而言，我們正在考慮的所有事情，無論是在集體談判範圍內，還是我們可以在集體談判之外採取一些努力，以使我們完全遵守集體談判的精神和規則。在休息、安全和其他方面都做出了努力。我們所經歷的一切是我們的集體協議與地方協議、義務以及聯邦政府去年發布的新規則的高度冗餘。因此，我們需要讓這一切變得更簡單，並且我們可以採取一些措施來減少冗餘。但正如我所說，在所有情況下，我們都會遵守聯邦法規。在某些情況下，我們可以透過談判桌上的集體談判來做到這一點，這就是我們想要做的。我們充滿希望，而且我們的基本計劃仍然是我們將透過談判達成協議。這是我們和工會處理我們每個人都想處理的問題的最佳方式。因此，當他們準備好再次啟動時，我們已經準備好進行這些討論。謝謝你的提問。

Thanks, Tracy.

謝謝，特雷西。

Walter Spracklin, RBC Capital Markets.

沃爾特‧斯普拉克林 (Walter Spracklin)，加拿大皇家銀行資本市場部。

Thanks very much, operator. I wanted to come back to a prior question that I don't know if it was answered directly. And that relates to your decision to maintain your three-year CAGR of 10% to 15%, but obviously, with the 2024 decline to mid to high, it puts up quite significantly the 2025 and '26 CAGR. And as we set our '25 and '26 estimates, I just want to make sure you're comfortable with kind of growth that's going to be in that 12%, 13%, 14%, 15% range to just get back into that 10% to 15% CAGR over a three-year period. Are you comfortable with that kind of growth in '25 and '26 because that's just mathematically what that implies, right?

非常感謝，接線生。我想回到之前的一個問題，我不知道它是否得到了直接回答。這與您決定維持 10% 至 15% 的三年複合年增長率有關，但顯然，隨著 2024 年下降至中高水平，它會相當顯著地提高 2025 年和 26 年複合年增長率。當我們設定 25 年和 26 年的預測時，我只是想確保您對 12%、13%、14%、15% 範圍內的增長感到滿意，然後再回到這個水平三年內複合年增長率為10% 至15%。您對 25 年和 26 年的這種增長感到滿意嗎，因為這只是數學上的含義，對嗎？

So let me share with you how we're thinking about it. What's going very well and exactly on plan is the growth that we're driving through the CN-specific initiatives. And if you'll recall, we said this was 50%, and this was efforts that were less or not related at all to the underlying strength of the economy and the economic growth. What is much slower than the assumptions that we laid out when we -- at Investor Day last year is the pace of economic growth. And so that, without a doubt, is slower, and we are feeling that as we look at our growth plan. We do believe that, that will come back. And so if we're wrong on that, then yes, it could be a little bit slower. So the top line kind of story goes like that. From an operations perspective, the way that you drive efficiency into a railroad operation is with velocity. And so I'm really happy with the way that our plan is coming together is running and the kind of velocity that the guys are running through it. It's because we build a plan and Remi sells it. And if the volume shows up as we expected, this is a highly efficient operation. So as we look forward, pending some assumptions that Ghis has laid out then we're pretty comfortable that we can reach those numbers.

因此，讓我與您分享我們的想法。進展順利且完全按計劃進行的是我們透過 CN 特定計劃推動的成長。如果你還記得的話，我們說過這是 50%，而這種努力與經濟的潛在實力和經濟成長較少或根本無關。比我們去年投資者日時提出的假設慢得多的是經濟成長的速度。因此，毫無疑問，速度會變慢，當我們審視我們的成長計劃時，我們感覺到了這一點。我們確實相信，那將會回來。因此，如果我們在這一點上錯了，那麼是的，速度可能會慢一點。所以最重要的故事就是這樣的。從營運角度來看，提高鐵路營運效率的方法是提高速度。因此，我對我們計劃的實施方式以及人們執行計劃的速度感到非常滿意。這是因為我們制定了一個計劃，雷米將其出售。如果成交量符合我們的預期，那麼這就是一個高效率的操作。因此，當我們展望未來時，在吉斯提出的一些假設之前，我們對能夠達到這些數字感到非常滿意。

Okay. Thank you very much.

好的。非常感謝。

Thanks for the question.

謝謝你的提問。

Ravi Shanker, Morgan Stanley.

拉維‧尚克，摩根士丹利。

Thanks for squeezing me in here. Just a couple of follow-ups. One is, in your conversations with your customers, are you seeing them pull forward peak season demand into basically now? And is there a risk that you may be potentially missing out on volumes? I mean just when you kind of resolve the labor things kind of later this summer, early fall, does that drop off in the back of the year? And also, apologies if I missed this, but did you quantify the OR impact of the network blockages in Q2?

謝謝你把我擠在這裡。只是幾個後續行動。一是，在您與客戶的對話中，您是否看到他們將旺季需求基本上推遲到現在？您是否有可能錯過大量訂單的風險？我的意思是，當你在今年夏末秋初解決勞動力問題時，情況會在今年稍後消失嗎？另外，如果我錯過了這一點，我很抱歉，但是您是否量化了第二季度網路阻塞的 OR 影響？

Maybe I'll start on the pull forward. Thanks for your question. So yes, for sure, we do see a part of that. There's, obviously, the biggest impact of the labor situation is on intermodal and the international business because our customers are planning vessels, they have to plan them quite a bit further out. On the domestic side, we think customers have largely proved out their truck contingencies and then more rapidly came back to the rails. But on the vessel side, it's a little trickier. So we think there has been a bit of pull forward of that volume. What we're sort of focused on, though, is how quickly once we put this behind us, we can recover it. And we're thinking that ports in the US on the West Coast are more congested than they were last year when we had the ILWU strike. So ideally, that volume will come back more quickly. And indications are, as I said, on the domestic market that we'll be able to bring the volume back to our rails quicker also. I just want to add to an earlier question on the Iowa Northern acquisition that both Tracy and I talked about. Obviously, that is pending STB approval. So we're hoping that comes through in the next couple of weeks here, but that is an important caveat.

也許我會從向前拉動開始。謝謝你的提問。所以，是的，我們確實看到了其中的一部分。顯然，勞動力狀況的最大影響是對多式聯運和國際業務，因為我們的客戶正在規劃船舶，他們必須進一步規劃。在國內方面，我們認為客戶已經在很大程度上證明了他們的卡車意外情況，然後更快地回到了軌道上。但在船舶方面，情況有點棘手。因此，我們認為該數量有所提前。不過，我們關注的是，一旦我們把這件事拋在腦後，我們能多快地恢復它。我們認為美國西岸的港口比去年 ILWU 罷工時更加擁擠。因此，理想情況下，該交易量會更快恢復。正如我所說，有跡象表明，在國內市場上，我們也將能夠更快地將銷售量恢復到正常水平。我只是想補充一下我和特雷西都談過的關於愛荷華北方收購的先前問題。顯然，這有待 STB 批准。所以我們希望這能在接下來的幾週內實現，但這是一個重要的警告。

And maybe, Ravi, on your second piece of the question in terms of if we quantify the impact of the network Vancouver corridor issues on OR, we did not, but I did give some specific examples of recrew costs or deadhead cost and held away cost that was much higher than what we've seen in the past like in the range of 130% on the first one, like I said, close to 40% on deadhead and about 75%, 74% on the last one. So that's what we did. Thanks for the question, Ravi.

也許，拉維，關於你的第二個問題，即我們是否量化溫哥華走廊問題對 OR 的影響，我們沒有，但我確實給出了一些船員成本或空頭成本和滯留成本的具體例子這比我們過去看到的要高得多，像是第一個的130%，就像我說的，空頭的接近40%，最後一個的大約75%、74%。這就是我們所做的。謝謝你的提問，拉維。

Thank you.

謝謝。

This concludes the question-and-answer session. I would like to turn the call back over to Tracy Robinson.

問答環節到此結束。我想把電話轉回給特雷西·羅賓遜。

Thanks so much. We will wrap it up here. This has been a challenging quarter for us, but we understand the issues and we're on them. In the immediate term, we're working through the uncertainty on labor here in Canada, which we hope to resolve in the coming weeks. The railroad is running well and I'm excited about the future, particularly the efforts and the successes that we've had in driving new business to railroad and advancing our customer initiatives and Remi is all over this. The team is doing exactly what they need to do and we're continuing to deliver to our customers. And this model is working. Thanks so much for your time today.

非常感謝。我們將在這裡總結一下。這對我們來說是一個充滿挑戰的季度，但我們了解這些問題，並且正在解決這些問題。短期內，我們正在努力解決加拿大勞動力的不確定性，我們希望在未來幾週內解決這個問題。鐵路運作良好，我對未來感到興奮，特別是我們在推動鐵路新業務和推進我們的客戶計劃方面所做的努力和成功，而雷米就是這一切的全部。團隊正在做他們需要做的事情，我們將繼續為客戶提供服務。這個模型正在發揮作用。非常感謝您今天抽出時間。

The conference call has now ended. Thank you for your participation. You may now disconnect your lines.

電話會議現已結束。感謝您的參與。現在您可以斷開線路。