Canadian railways positive about Trump despite concerns about lumber quotas

Canada’s two largest railways are positive about the impact of a Donald Trump presidenc.

MONTREAL — Canada’s two largest railways are positive about the impact of a Donald Trump presidency despite some concern about the possibility of quotas being placed on lumber exports.

Senior executives from Canadian National and Canadian Pacific railways told a transportation conference Wednesday they’re not worried at this point about the U.S. president-elect’s threat to alter the North American Free Trade Agreement.

CP Rail president Keith Creel said Trump’s attention in threatening changes to the trade deal is targeted mainly at Mexico, not Canada.

And he sees potential benefits if Trump moves forward with a US$1-trillion infrastructure program and cuts the U.S. corporate tax rate to 15 per cent.

A large stimulus program would increase demand for Canadian raw materials including aggregate, cement, steel and chemicals, helping the Calgary-based railway (TSX:CP), which derives 30 per cent to 35 per cent of its revenues from the United States.

“So we’re bullish on it in all honestly,” Creel told the Credit Suisse Industrials conference in Palm Beach, Fla.

“I think it’s going to be a good thing if he does what he said he’s going to do.”

Ghislain Houle, chief financial officer of Montreal-based CN Rail (TSX:CNR), offered similar positive sentiments but also expressed concern that the imposition of quotas that limit softwood lumber exports would hurt the railway.

He said the railway derives 15 per cent of its overall revenues from forestry products including shipments within Canada, to the U.S. and overseas.

The U.S. Lumber Coalition last week formally petitioned the American government to restore “fair trade” for softwood lumber. It’s seeking the imposition of duties and quotas to reduce lumber imports from Canada.

Just Posted

Maskwacis RCMP seeking suspect in fatal hit and run

A Maskwacis man was fatally injured after being hit early Saturday morning on Hwy 611

Red Deer to get new a plan to end homelessness as the problem persists

Despite some successes there’s ‘a long way to go,’ says manager

Many Red Deer-area farmers deal with a disastrous year

Dought in the spring, snow at harvest creates bad yields, sends hay prices soaring

Photos: Part of downtown Red Deer covered in trash over the weekend

Downtown businesses deal with trash, needle debris, graffiti

Delburne man’s reckless driving led to fatal crash: Crown prosecutor

Jury began deliberating in manslaughter trial on Monday afternoon

Speaker at rally says Alberta oil ‘puts tofu on the table in Toronto!’

GRANDE PRAIRIE, Alta. — A rally in support of Alberta’s oil industry… Continue reading

Moneywise: Canadian workers unhappy with pay, want pension plans

Many working Canadians are feeling underpaid and are so worried about their… Continue reading

Brazil police say faith healer has turned himself in

RIO DE JANEIRO — A celebrity faith healer accused of sexually abusing… Continue reading

B.C. hockey coach creates ‘gear library’ to remove cost barrier of sport

VANCOUVER — Nicola Froese says she has always loved playing sports, but… Continue reading

Canada’s Kim McRae finishes seventh at luge World Cup in Lake Placid, N.Y.

LAKE PLACID, N.Y. — Canada’s Kim McRae finished in seventh place at… Continue reading

Jeff Bridges to receive Cecil B. DeMille Award at Globes

LOS ANGELES — Jeff Bridges may have once been considered as one… Continue reading

Top of mind: ‘Justice’ is Merriam-Webster’s word of the year

NEW YORK — Racial justice. Obstruction of justice. Social justice. The Justice… Continue reading

Man who demolished landmark house ordered to build replica

SAN FRANCISCO — A man who illegally demolished a San Francisco house… Continue reading

Giuliani: ‘Over my dead body’ will Mueller interview Trump

WASHINGTON — With a number of probes moving closer to the Oval… Continue reading

Most Read