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CN rail closures from Wet’suwet’en protests affecting industry, farmers say – Calgary Herald

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A man walks dogs across train tracks as First Nations members of the Tyendinaga Mohawk Territory block the route servicing Via Rail, as part of a protest against British Columbia’s Coastal GasLink pipeline, in Tyendinaga, Ontario, Canada February 13, 2020. REUTERS/Chris Helgren ORG XMIT: GGGTYE104


CHRIS HELGREN / REUTERS

Farmers who rely on rail for shipping their harvest say blockades that have forced the stoppage of all Canadian National Railway Co. transcontinental trains could have a significant economic effect on Alberta’s agricultural industry.

“We’re seeing immediate effects already from the closures,” said Todd Hames, a grain farmer near Marwayne, about 250 kilometres east of Edmonton, who is also the chair of the Alberta Wheat Commission.

“There’s been a significant stoppage of grain movement already and if this were to continue for very many days, it will be lost capacity that’s really hard to regain. It’s like a lost day of work for the industry.”

Blockades set up by demonstrators have halted the movement of more than 300 freight trains since Feb. 6. The protesters are forming the blockades in solidarity with northwestern British Columbia’s Wet’suwet’en First Nation, whose hereditary chiefs oppose the Coastal GasLink project that crosses through their traditional territory.

The barricades, set up in Ontario and British Columbia, led CN Rail to start a “progressive and orderly shutdown of its Eastern Canadian network,” according to a statement posted to the railway operator’s website Thursday.


A “Stop Colonization” sign is taped to a camper as First Nations members of the Tyendinaga Mohawk Territory block train tracks servicing Via Rail, as part of a protest against British Columbia’s Coastal GasLink pipeline, in Tyendinaga, Ontario, Canada February 13, 2020.

CHRIS HELGREN /

REUTERS

For farmers, the news compounds a difficult few months that saw an eight-day CN Rail strike in November, an extended January cold spell and recent heavy rain that delayed rail movement and the loading of grain vessels in Vancouver. In all, it’s led to a backlog that has dozens of ships waiting to be loaded in Vancouver, with another eight sitting idle in Prince Rupert.

“That early strike was certainly a factor, and they’ve had to catch up on supply. It seemed like they were catching up on it, but cold weather has had an effect, especially with the amount of snow on the mountains,” said Lynn Jacobson, president of the Alberta Federation of Agriculture. “Saying (the backlog) is all on the protesters isn’t telling the whole story, but it will have an effect on us.”

If the interruptions continue for an extended period of time, the economic effect could be dramatic, Hames said, arguing that those effects could be felt internationally if Canada fails to ship its product to other markets.

“It causes a loss of confidence in Canada and our competitive environment in Canada because we’re exporting a lot of grain around the world,” he said. “Our customers really like the quality of our product but they need to be assured that they’ll get it when they ask for it.

“Any sort of blip in the system causes our international customers to be concerned about purchasing Canadian grain.”

The concerns extend beyond Alberta’s agricultural industry and to manufacturers across the province, says Canadian Manufacturers and Exporters president and CEO Dennis Darby.

“It has an effect everywhere, and Alberta will be affected as well, because manufacturers in Eastern Canada are often building equipment and parts they need out West,” Darby said. “I think it’s an economic imperative that we get this resolved. We sometimes take for granted that our integrated supply chain in Canada, and also north-to-south, relies on rail.”


First Nations members of the Tyendinaga Mohawk Territory block train tracks servicing Via Rail, as part of a protest against British Columbia’s Coastal GasLink pipeline, in Tyendinaga, Ontario, Canada February 13, 2020.

CHRIS HELGREN /

REUTERS

In addition to the CN Rail closures, Via Rail is putting a temporary halt on its passenger services nationwide. The passenger train service runs mostly on CN Rail track.

The railway operator also said the shutdowns could lead to temporary layoffs, with Teamsters Canada, the union representing CN Rail workers, saying 6,000 employees at CN and other rail companies could be left without a job.

“These blockades are having a catastrophic impact on ordinary, working-class Canadians who have nothing to do with the Coastal GasLink pipeline,”  Teamsters Canada president François Laporte said Thursday.

“Hundreds of our members have been out of work close to week. Now up to 6,000 of our members risk not being able to support their families or make ends meet this month, and they are powerless to do anything about it.”

A blockade in Manitoba was taken down Thursday, but ones in Belleville, Ont., and New Hazelton, B.C., remain.

Federal Indigenous Services Minister Marc Miller offered Thursday to meet with three Indigenous leaders in Ontario as the federal government seeks a solution to the rail blockades.

Tyendinaga Mohawk Chief Donald Maracle says he expects the meeting will take place but he can’t comment on the blockade because it wasn’t initiated by council.

A meeting is also expected to take place between the B.C. government and Gitxsan and Wet’suwet’en hereditary chiefs.

Data from the Angus Reid Institute shows that roughly two in five Canadians support Wet’suwet’en solidarity protesters, while 51 per cent support the $6.6-billion Coastal GasLink pipeline.

However, despite the protests, few Canadians expect the project to be stopped, with 57 per cent believing the pipeline will be built with some delays and another 34 per cent saying they’re confident construction will push forward as planned despite the demonstrations.

— With files from The Canadian Press

jherring@postmedia.com

Twitter: @jasonfherring

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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