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CN Rail to shut ‘significant’ sections of track if Coastal GasLink pipeline protests continue – The Globe and Mail

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A First Nations protester stands in front of a transport in Tyendinaga Mohawk Territory near Belleville, Ont., on Feb. 11, 2020, in support of Wet’suwet’en’s blockade of a natural gas pipeline in northern B.C.

Lars Hagberg/The Canadian Press

Railways in the country’s most populous areas approached gridlock Tuesday as Indigenous people and their supporters protested against a B.C. pipeline development and government leaders squabbled over who should intervene.

Canadian National Railway Co. announced it “will be forced to shut down significant parts” of its network if protests don’t end soon along Southern Ontario rail lines, which control trains headed east and west. After six days of protest, hundreds of trains hauling everything from fresh produce to chlorine for municipal water purification were parked on the tracks, which are filling rapidly.

Protests escalated and spread across the country after police confronted protesters from the Wet’suwet’en Nation who had blocked construction of the Coastal GasLink natural gas pipeline in British Columbia. RCMP arrested seven people on Monday along a key logging road in a bid to restore access to construction sites for Coastal GasLink. Along that road, police have arrested a total of 28 people at protests sympathetic to the Wet’suwet’en hereditary chiefs’ cause since Thursday.

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Port operations in Halifax, Montreal and Prince Rupert were slowed, while rail service disruption in B.C. caused trains to be backed up to Saskatchewan, according to CN. Passenger train service Via Rail, which runs mainly on CN tracks, cancelled 34 trains in the Toronto-Ottawa-Montreal corridor on Tuesday because of the protests. Some 24,500 travellers have had to make other plans since Thursday. Via said late Tuesday it’s cancelling all service on the Montreal-Toronto and Toronto-Ottawa routes in both directions through Thursday because of the blockade.

“It’s not just passenger trains that are impacted by these blockades, it’s all Canadian supply chains,” said JJ Ruest, chief executive officer of Montreal-based CN. “We are currently parking trains across our network, but due to limited available space for such, CN will have no choice but to temporarily discontinue service in key corridors unless the blockades come to an end.”

As the protests along CN’s main line near Belleville, Ont., entered their sixth day, Andrew Brant, who is from the nearby Tyendinaga Mohawk Territory, said the demonstration along the train tracks began organically, as a gesture of solidarity with the Wet’suwet’en and other Indigenous communities.

“It just happened,”’ he said. “A couple people went out there because we’re sick of how we’re treated as Indigenous people in Canada.”

The protesters, who are by their own admission acting without the support of their chief and band council, say they will not move until the RCMP stop enforcing a court injunction against anti-pipeline protesters in northwestern B.C.

“Pull out and leave them alone” Mr. Brant said. “As soon as that happens, we can leave. We can all go back to our daily routines.”

Despite being thousands of kilometres apart, the communities of Wet’suwet’en and Tyendinaga forged a bond during the 1990 Oka crisis, a long standoff between Mohawk communities in Quebec and the Canadian Armed Forces over the expansion of a local golf course. “They were there for us in 1990,” Mr. Brant said.

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Last Friday, CN obtained an injunction against the protesters from Tyendinaga, as their encampment continued to snarl passenger and freight traffic between Toronto and Montreal. Protesters have vowed to defy the injunction.

Federal Transport Minister Marc Garneau said he is concerned about the blockades, but it is up to provincial governments to enforce the law along railways.

“The impact is enormous,” Mr. Garneau said. “The railways have obtained injunctions. … It is the responsibility of the province to make sure an injunction is respected, not the federal government.”

The Ontario Provincial Police are continuing to speak with protesters and seek a “peaceful resolution,” said spokesman Bill Dickson, including by delivering gifts of tobacco and maple syrup. The OPP is acting in accordance with the force’s framework for police preparedness for Indigenous critical incidents, Mr. Dickson said. The policy was adopted in the wake of the Ipperwash Crisis, a 1995 standoff over disputed land in Southwestern Ontario between local First Nations and provincial police.

“It’s been a peaceful demonstration,” Mr. Dickson said. “We’ve had nothing but good co-operation, good communication with the individuals participating.”

Quebec Premier François Legault, whose province is cut off by the Ontario protest and is also dealing with a commuter rail line blockade south of Montreal, said Ottawa and the local Mohawk Peacekeeper police force must act. “I think there’s a big part of this that is the federal government’s responsibility,” he said. “We’ve got passenger train problems and once again looming propane shortages for farmers. It has to stop. It can’t go on like this for long.”

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Protesters used mounds of snow and wooden pallets to block the Candiac commuter rail line in the Kahnawake Mohawk Territory near Montreal, disrupting the daily travel of 3,000 people.

Some protesters were apologetic for the disruption they were causing, but pointed to the hundreds of years of inconvenience sthey had suffered since European settlement. “I feel like the message is getting across,” said Dayna Danger, a Métis-Saulteaux originally from Winnipeg who lives in Montreal and joined the Kahnawake protest in solidarity. “The RCMP [are] breaking our laws with their action [in British Columbia], so we’re coming together to pressure the RCMP to get out of that territory.”

In Eastern Quebec, members of the Listuguj Mi’gmaq nation blocked a small regional railway line used mostly to haul lumber.

Meanwhile, anti-pipeline protesters surrounded the B.C. Legislature on Tuesday, preventing some elected officials and journalists from entering the buildings and delaying the start of the 2020 legislative session.

Alberta Premier Jason Kenney, a fervent defender of the oil and gas industry, called the protesters hypocrites who are not helping to further Indigenous rights or fight climate change. He said that all elected First Nation councils along the pipeline route support the Coastal GasLink project, and he argued that ensuring countries such as China replace coal power with liquefied natural gas would have an enormous impact on reducing global emissions.

With reports from James Keller in Calgary, Justine Hunter in Victoria, and The Canadian Press.

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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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