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.

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Rocky Mountain House RCMP are investigating a fatal collision involving a pedestrian on Feb. 27. (File photo by Advocate staff)
Rocky Mountain House RCMP investigate fatal pedestrian collision

Collision occured west of Rocky on Highway 11A

A cross-country skier glides along the banks of the Ottawa River in Ottawa on Thursday, Feb. 25, 2021. Canadians across the country can look forward to a mild spring peppered with the odd winter flashback throughout the first part of the season, according to predictions from one prominent national forecaster. THE CANADIAN PRESS/Sean Kilpatrick
Mild spring with some wintry blasts predicted for most of Canada: Weather Network

March will be dramatically warmer through the prairies

Bharat Masrani, CEO, TD Bank Group speaks at the Economic Club of Canada in Toronto on Wednesday, November 1, 2017. THE CANADIAN PRESS/Nathan Denette
Five things to watch for in the Canadian business world in the coming week

Shares in metals and mining companies have rebounded sharply

A worker carrying a disinfectant sprayer walks past a WestJet Airlines Boeing 737-800 aircraft, after cleaning another plane at Vancouver International Airport, in Richmond, B.C., on Thursday, January 21, 2021. THE CANADIAN PRESS/Darryl Dyck
WestJet to lay off undisclosed number of pilots amid labour negotiations

Layoff notices to go out ahead of the expiration of a memorandum of agreement

A dose of COVID-19 vaccine is prepared at a vaccination clinic in Montreal’s Olympic Stadium on Tuesday, February 23, 2021. THE CANADIAN PRESS/Paul Chiasson
Feds hoping for AstraZeneca shots this week as Pfizer-BioNTech prepare next delivery

Canada has ordered 24 million doses of AstraZeneca vaccine

Red Deer dogs Bunsen and Beaker helped save a missing pet recently. The two dogs have more than 80,000 followers on Twitter. (Contributed photo)
WATCH: Red Deer science dogs help save lost pet

Red Deer science-communicating dogs Bunsen and Beaker helped rescue a missing pet… Continue reading

A ” Justice for Jeff” T-shirt. (Photo submitted)
Rally to be held outside Red Deer courthouse for slain Ponoka man

Sentencing for accused charged with manslaughter with a firearm set for March 4

Team Canada skip Kerri Einarson makes a shot against Team Alberta as second Shannon Birchard, right, and lead Briane Meilleur sweep in the semi-final at the Scotties Tournament of Hearts in Calgary, Alta., Sunday, Feb. 28, 2021. THE CANADIAN PRESS/Jeff McIntosh
Kerri Einarson wins second straight Canadian women’s curling championship

Einarson and her teammates celebrated Sunday in the silence in an empty arena

Amy Poehler and Tina Fey hosted the Golden Globes on Feb. 28, 2021. (Photo by THE ASSOCIATED PRESS)
With loved ones and pets, Globes winners embrace cozier show

Nicole Kidman and musician-husband Keith Urban got glammed up to sit on their couch

The cast of “Schitt’s Creek” pose for a photo after winning the Award for Best Comedy Series at the Canadian Screen Awards in Toronto on March 31, 2019. THE CANADIAN PRESS/Chris Young
Schitt’s Creek nabs two Golden Globes for its final season

Catherine O’Hara named best television actress in a musical or comedy

Alberta Premier Jason Kenney speaks during a news conference in Edmonton on Feb. 24, 2020. It’s budget day in the province, and Kenney’s United Conservative government is promising more help in the fight against COVID, but more red ink on the bottom line. THE CANADIAN PRESS/Jason Franson
Alberta Premier slams vandalism after slur painted on MLA’s office window

EDMONTON — Alberta Premier Jason Kenney is condemning alleged vandalism at the… Continue reading

Canada Pension Plan Investment Board President and Chief Executive Officer Mark Machin waits to appear at the Standing Committee on Finance on Parliament Hill, in Ottawa on Tuesday, November 1, 2016. Executives who engage in so-called "vaccine tourism" show both an ethical disregard for those less fortunate and a surprising lack of business acumen, experts argue. THE CANADIAN PRESS/Adrian Wyld
Vaccine tourism is both unethical and bad for business, experts say

Executives who engage in so-called “vaccine tourism” show both an ethical disregard… Continue reading

Edmonton Oilers' Jesse Puljujarvi (13) and Toronto Maple Leafs' Justin Holl (3) battle in front as goalie Jack Campbell (36) makes the save during second period NHL action in Edmonton on Saturday, February 27, 2021.THE CANADIAN PRESS/Jason Franson
No Matthews, no problem: Minus NHL goal leader, Maple Leafs blank Oilers 4-0

Leafs 4 Oilers 0 EDMONTON — The Maple Leafs knew even with… Continue reading

Leader of the Government in the House of Commons Pablo Rodriguez rises during Question Period in the House of Commons on Parliament Hill in Ottawa, Friday, Nov. 20, 2020. THE CANADIAN PRESS/Justin Tang
Gummed-up bills in House of Commons: harbinger of a federal election?

OTTAWA — All federal party leaders maintain they don’t want an election… Continue reading

Most Read