CN rail closures from Wet’suwet’en protests affecting industry, farmers say - Calgary Herald | Canada News Media
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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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Telus prioritizing ‘most important customers,’ avoiding ‘unprofitable’ offers: CFO

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Telus Corp. says it is avoiding offering “unprofitable” discounts as fierce competition in the Canadian telecommunications sector shows no sign of slowing down.

The company said Friday it had fewer net new customers during its third quarter compared with the same time last year, as it copes with increasingly “aggressive marketing and promotional pricing” that is prompting more customers to switch providers.

Telus said it added 347,000 net new customers, down around 14.5 per cent compared with last year. The figure includes 130,000 mobile phone subscribers and 34,000 internet customers, down 30,000 and 3,000, respectively, year-over-year.

The company reported its mobile phone churn rate — a metric measuring subscribers who cancelled their services — was 1.09 per cent in the third quarter, up from 1.03 per cent in the third quarter of 2023. That included a postpaid mobile phone churn rate of 0.90 per cent in its latest quarter.

Telus said its focus is on customer retention through its “industry-leading service and network quality, along with successful promotions and bundled offerings.”

“The customers we have are the most important customers we can get,” said chief financial officer Doug French in an interview.

“We’ve, again, just continued to focus on what matters most to our customers, from a product and customer service perspective, while not loading unprofitable customers.”

Meanwhile, Telus reported its net income attributable to common shares more than doubled during its third quarter.

The telecommunications company said it earned $280 million, up 105.9 per cent from the same three-month period in 2023. Earnings per diluted share for the quarter ended Sept. 30 was 19 cents compared with nine cents a year earlier.

It reported adjusted net income was $413 million, up 10.7 per cent year-over-year from $373 million in the same quarter last year. Operating revenue and other income for the quarter was $5.1 billion, up 1.8 per cent from the previous year.

Mobile phone average revenue per user was $58.85 in the third quarter, a decrease of $2.09 or 3.4 per cent from a year ago. Telus said the drop was attributable to customers signing up for base rate plans with lower prices, along with a decline in overage and roaming revenues.

It said customers are increasingly adopting unlimited data and Canada-U.S. plans which provide higher and more stable ARPU on a monthly basis.

“In a tough operating environment and relative to peers, we view Q3 results that were in line to slightly better than forecast as the best of the bunch,” said RBC analyst Drew McReynolds in a note.

Scotiabank analyst Maher Yaghi added that “the telecom industry in Canada remains very challenging for all players, however, Telus has been able to face these pressures” and still deliver growth.

The Big 3 telecom providers — which also include Rogers Communications Inc. and BCE Inc. — have frequently stressed that the market has grown more competitive in recent years, especially after the closing of Quebecor Inc.’s purchase of Freedom Mobile in April 2023.

Hailed as a fourth national carrier, Quebecor has invested in enhancements to Freedom’s network while offering more affordable plans as part of a set of commitments it was mandated by Ottawa to agree to.

The cost of telephone services in September was down eight per cent compared with a year earlier, according to Statistics Canada’s most recent inflation report last month.

“I think competition has been and continues to be, I’d say, quite intense in Canada, and we’ve obviously had to just manage our business the way we see fit,” said French.

Asked how long that environment could last, he said that’s out of Telus’ hands.

“What I can control, though, is how we go to market and how we lead with our products,” he said.

“I think the conditions within the market will have to adjust accordingly over time. We’ve continued to focus on digitization, continued to bring our cost structure down to compete, irrespective of the price and the current market conditions.”

Still, Canada’s telecom regulator continues to warn providers about customers facing more charges on their cellphone and internet bills.

On Tuesday, CRTC vice-president of consumer, analytics and strategy Scott Hutton called on providers to ensure they clearly inform their customers of charges such as early cancellation fees.

That followed statements from the regulator in recent weeks cautioning against rising international roaming fees and “surprise” price increases being found on their bills.

Hutton said the CRTC plans to launch public consultations in the coming weeks that will focus “on ensuring that information is clear and consistent, making it easier to compare offers and switch services or providers.”

“The CRTC is concerned with recent trends, which suggest that Canadians may not be benefiting from the full protections of our codes,” he said.

“We will continue to monitor developments and will take further action if our codes are not being followed.”

French said any initiative to boost transparency is a step in the right direction.

“I can’t say we are perfect across the board, but what I can say is we are absolutely taking it under consideration and trying to be the best at communicating with our customers,” he said.

“I think everyone looking in the mirror would say there’s room for improvement.”

This report by The Canadian Press was first published Nov. 8, 2024.

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TC Energy cuts cost estimate for Southeast Gateway pipeline project in Mexico

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CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.

It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.

The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.

Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.

TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.

The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.

This report by The Canadian Press was first published Nov. 7, 2024.

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BCE reports Q3 loss on asset impairment charge, cuts revenue guidance

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BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.

The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.

On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.

“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.

“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”

Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.

BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.

The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.

BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.

It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.

The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”

Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.

This report by The Canadian Press was first published Nov. 7, 2024.

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