Industrial Tour
BY MATTHEW ROBINSON
Canadian National Railway (CN) and Canadian Pacific Kansas City (CPKC) have been instrumental to Canada’s economic development for more than a century, and both continue to modernize and pursue greater efficiency to this day. In June, we had the opportunity to spend time at each of the company’s Winnipeg operations and met with members of their senior management. The visits underscored a consistent theme of discipline and precision. Both railways are investing to make their assets nimbler in a world where responsiveness is more valuable than ever.
Symington Yard is a core link in CN’s transcontinental network, connecting Western Canada to Eastern Canada and the United States. It is one of CN’s four hump yards, where trains come in, get broken down and sorted before proceeding to their destination. The yard processes roughly 4,000 cars per day and is operationally one of the most complex assets in the North American freight rail network. The yard’s efficiency continues to improve as evidenced by its recent dwell times (i.e. how long railcars are sitting idle in the yard) coming down to under 18 hours, which is the lowest level since August 2023. The performance of the yard is critical given its location as its fluidity has knock-on effects across the network.
The CN tour also showcased the company’s safety culture with a focus on recreating real-word events rather than just relying on classroom teaching. Employees train inside simulated environments ranging from fire emergencies to slippery terrain, with walking-related incidents the leading cause of injuries. Meanwhile, artificial intelligence quietly works behind the scenes, utilizing inputs from trackside sensors and self-driving inspection vehicles to predict and address potential failures before they happen. Safety functions as both a community commitment and an operational focal point, keeping the network fluid with fewer disruptions.
The CPKC tour underscored Winnipeg’s importance to the network and highlighted the opportunities created from the merger with Kansas City Southern. The Winnipeg yard was named CPKC’s terminal of the year in 2025, a notable achievement for such a critical hub in the network. We also saw the Weston Production Facility, which provides mechanical and engineering support including wheel production, track component manufacturing, and locomotive repair. The wheel production facility supplies 80% of CPKC’s needs and the long-term goal is to
become 100% self-sufficient. Automation has helped to lift output from roughly 130 wheels a day to 200, with a goal of ultimately reaching 300. Building its own track helps to lower costs and have more control over the supply chain. In terms of locomotive repairs, the facility has a 5-day cycle time and performs 48-50 overhauls
per year.
Overall, the tours gave us a better appreciation of just how critical Winnipeg is to both networks. The companies continue to invest to remove bottlenecks and increase network fluidity. Automation is a focal point of investment as the rails look to do more with their irreplaceable networks. We believe the investments being made today set the companies up well for future growth.
DIVIDEND INCREASES % Increase
CANADA
Bank of Montreal 2.4%
Canadian Pacific Kansas City Limited 17.5%
National Bank of Canada 6.5%
Pembina Pipeline Corporation 3.5%
Royal Bank of Canada 7.3%
Sun Life Financial Inc. 4.3%
The Bank of Nova Scotia 3.6%
INTERNATIONAL
Medtronic plc 1.4%
For the three-month period ended June 30, 2026.
