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Port strike will take two months for recovery, CN says, as wildfires dent earnings

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MONTREAL — Canada’s largest railway said the B.C. port strike will take two months to recover from, adding to the headaches of a company that lowered its…

Beyond its grasp were the wildfires that have raged across the country over the past two months, numbering nearly 900 last week.

Over the weekend, torrential rains and flooding in Nova Scotia severed a key rail link to Central Canada and the U.S. after a washout left a stretch of CN track sagging unsupported above a massive ditch where a culvert once lay, stopping train shipments from the Port of Halifax. The disruption will have a “minor impact” on earnings this quarter, MacDonald said. But he projected it will take eight weeks to clear the backlog caused by the labour action.

The forecast marks a contrast to the sunny outlook offered by the CEO three months earlier, despite expectations of a shrinking economy throughout much of the year.

 

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