Wed, April 24, 2024 at 9:35 AM EDT
Business
Industry, passengers left stranded as anti-pipeline blockades shut rail service – Yahoo News Canada
Blockades set up by anti-pipeline protesters have forced Canadian National Railway Co. to shut down its entire network in Eastern Canada and Via Rail to cancel passenger service across the country.
CN said Thursday that the company must initiate a “disciplined and progressive” shutdown in the East and stop and safely secure all transcontinental trains across its Canadian network.
Via Rail said it has no other option but to cancel all service on CN track in Canada. There were no more departures as of 4 p.m. eastern and all trains en route were brought to the closest major train station.
“We understand the impact this unfortunate situation has on our passengers and regret the significant inconvenience this is causing to their travel plans,” Via said in a news release.
Protesters across Canada say they’re acting in solidarity with those opposed to the construction of the Coastal GasLink pipeline, which would cross the traditional territories of the Wet’suwet’en First Nation in northern B.C.
CN said its shutdown may lead to temporary layoffs for eastern Canadian staff.
It has sought and obtained court orders and requested the assistance of enforcement agencies for blockades in three provinces, but while blockades have been dismantled in Manitoba and may be ending imminently in B.C., a court order in Ontario has yet to be enforced.
More than 400 trains have been cancelled over the last week, said JJ Ruest, CN’s president and chief executive officer, in a news release.
“This situation is regrettable for its impact on the economy and on our railroaders as these protests are unrelated to CN’s activities, and beyond our control. Our shutdown will be progressive and methodical to ensure that we are well set up for recovery, which will come when the illegal blockades end completely.”
He said while Via service will be discontinued across CN’s network, commuter rail services such as Metrolinx and Exo can keep operating as long as they do so safely.
Prime Minister Justin Trudeau told reporters after landing in Munich, Germany, that his government is monitoring the situation very closely and he had a long and productive conversation with B.C. Premier John Horgan on the plane.
“We’re concerned with the rule of law and we need to make sure that those laws are followed,” Trudeau said.
The B.C. and federal governments have agreed to meet with Gitxsan and Wet’suwet’en hereditary chiefs to discuss a blockade near New Hazelton, B.C.
Gitxsan hereditary chief Norm Stephens said the blockade will be dismantled during the talks but if the province doesn’t agree to cancel Coastal GasLink’s permit then it may go back up.
Transport Minister Marc Garneau said he is deeply concerned by the impact of the decision CN was forced to make and its effect on Via Rail.
“A safe and efficient passenger and freight rail service is critical to the well-being of our country,” Garneau said on Twitter.
Garneau said he would be meeting with his provincial counterparts and Indigenous groups on Friday to discuss a way forward.
He said all parties must engage in open and respectful dialogue to ensure this situation is resolved peacefully.
“We are encouraged by the progress on the blockade in New Hazelton. This is a positive development and we are actively working for a similar resolution on all remaining blockades.”
Coastal GasLink has signed agreements with all 20 elected band councils along the pipeline route but the Wet’suwet’en hereditary chiefs say councils only have authority over reserve lands, not traditional territories that have never been ceded through a treaty.
“They got that permit by consulting with the band council,” said Stephens. “They have no authority on the hereditary chiefs’ land.”
Indigenous Services Minister Marc Miller is also setting up a meeting with Indigenous leaders in an effort to halt a blockade near Belleville, Ont., which he called a “highly volatile situation.”
Tyendinaga Mohawk Chief Donald Maracle said he expects the meeting will proceed but he can’t comment on Miller’s request to end the blockade because it wasn’t initiated by his council.
Railway shippers called on the prime minister to “act decisively” to prevent a complete shutdown of Canada’s rail system.
Delays caused by the blockades will have immediate consequences for farmers across the country, said Grain Growers of Canada chairman Jeff Nielsen.
“We are an industry that relies on export markets in order to survive and thrive. Without access to these markets via rail, we risk compounding further losses on top of what has already been a harvest from hell,” he said in a news release.
Canada’s forest products sector is responsible for 10 per cent of total tonnage moved along the country’s railway lines.
“Some companies are now in a position that they can’t guarantee delivery dates to customers — a massive business risk and a dark cloud over Canada’s reputation as a reliable trading partner,” said Derek Nighbor, president and CEO of Forest Products Association of Canada.
Teamsters Canada, the country’s largest union in the transportation sector, also called on the federal government to intervene.
“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,” said National President Francois Laporte.
Passengers dealing with cancelled Via Rail trains at Toronto’s Union Station were disappointed but calm on Thursday evening. Ethan Sun and Angi Xhang, a Toronto-based couple, were headed to Montreal for a Valentine’s Day getaway. That route has been down for days, unbeknownst to them.
“We’re obviously very frustrated and disappointed, because we have our entire trip planned and we’re very excited for it, and it’s a long weekend,” said Xhang.
Jane Gooder was trying to get home to London, Ont., after working in Toronto through the week.
She said she’s found someone to come pick her up, but she was “gobsmacked” when she first heard all trains were cancelled.
“I just thought, ‘Where do I start? Do I stay over?’ And then they said, ‘Even if you stay over the next day there’s no guarantee, this could go on to next week,’ ” she said.
In Manitoba, protesters dismantled a blockade on an east-west CN Rail line near Winnipeg due to a court injunction but insisted that there would be more action to come.
Protesters in B.C. planned mass demonstrations at numerous government buildings on Friday, days after hundreds blocked the entrances to the legislature and chanted “Shame.”
However, a B.C. Supreme Court judge granted the province an injunction on Thursday afternoon authorizing police to arrest and remove anyone blocking entrances at the legislature.
TransLink, Metro Vancouver’s transit authority, also said all West Coast Express commuter trains heading eastbound from downtown Vancouver to Mission were cancelled due to protesters blocking Canadian Pacific tracks.
— With files from Chris Purdy in Edmonton, Mia Rabson in Munich, Germany, Nicole Thompson and Ross Marowits in Toronto, David Reevely in Ottawa, Camille Bains in Vancouver and Dirk Meissner in Victoria.
This report by The Canadian Press was first published Feb. 13, 2020.
Laura Kane, The Canadian Press
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Business
Oil Firms Doubtful Trans Mountain Pipeline Will Start Full Service by May 1st
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Oil companies planning to ship crude on the expanded Trans Mountain pipeline in Canada are concerned that the project may not begin full service on May 1 but they would be nevertheless obligated to pay tolls from that date.
In a letter to the Canada Energy Regulator (CER), Suncor Energy and other shippers including BP and Marathon Petroleum have expressed doubts that Trans Mountain will start full service on May 1, as previously communicated, Reuters reports.
Trans Mountain Corporation, the government-owned entity that completed the pipeline construction, told Reuters in an email that line fill on the expanded pipeline would be completed in early May.
After a series of delays, cost overruns, and legal challenges, the expanded Trans Mountain oil pipeline will open for business on May 1, the company said early this month.
“The Commencement Date for commercial operation of the expanded system will be May 1, 2024. Trans Mountain anticipates providing service for all contracted volumes in the month of May,” Trans Mountain Corporation said in early April.
The expanded pipeline will triple the capacity of the original pipeline to 890,000 barrels per day (bpd) from 300,000 bpd to carry crude from Alberta’s oil sands to British Columbia on the Pacific Coast.
The Federal Government of Canada bought the Trans Mountain Pipeline Expansion (TMX) from Kinder Morgan back in 2018, together with related pipeline and terminal assets. That cost the federal government $3.3 billion (C$4.5 billion) at the time. Since then, the costs for the expansion of the pipeline have quadrupled to nearly $23 billion (C$30.9 billion).
The expansion project has faced continuous delays over the years. In one of the latest roadblocks in December, the Canadian regulator denied a variance request from the project developer to move a small section of the pipeline due to challenging drilling conditions.
The company asked the regulator to reconsider its decision, and received on January 12 a conditional approval, avoiding what could have been another two-year delay to start-up.
Business
Tesla profits cut in half as demand falls
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Tesla profits slump by more than a half
Tesla has announced its profits fell sharply in the first three months of the year to $1.13bn (£910m), compared with $2.51bn in 2023.
It caps a difficult period for the electric vehicle (EV) maker, which – faced with falling sales – has announced thousands of job cuts.
Boss Elon Musk remains bullish about its prospects, telling investors the launch of new models would be brought forward.
Its share price has risen but analysts say it continues to face significant challenges, including from lower-cost rivals.
The company has suffered from falling demand and competition from cheaper Chinese imports which has led its stock price to collapse by 43% over 2024.
Figures for the first quarter of 2024 revealed revenues of $21.3bn, down on analysts’ predictions of just over $22bn.
But the decision by Tesla to bring forward the launch of new models from the second half of 2025 boosted its shares by nearly 12.5% in after-hours trading.
It did not reveal pricing details for the new vehicles.
However Mr Musk made clear he also grander ambitions, touting Tesla’s AI credentials and plans for self-driving vehicles – even going as far as to say considering it to be just a car company was the “wrong framework.”
“If somebody doesn’t believe Tesla is going to solve autonomy I think they should not be an investor,” he said.
Such sentiments have been questioned by analysts though, with Deutsche Bank saying driverless cars face “technological, regulatory and operational challenges.”
Some investors have called for the company to instead focus on releasing a lower price, mass-market EV.
However, Tesla has already been on a charm offensive, trying to win over new customers by dropping its prices in a series of markets in the face of falling sales.
It also said its situation was not unique.
“Global EV sales continue to be under pressure as many carmakers prioritize hybrids over EVs,” it said.
Despite plans to bring forward new models originally planned for next year the firm is cutting its workforce.
Tesla said it would lose 3,332 jobs in California and 2,688 positions in Texas, starting mid-June.
The cuts in Texas represent 12% of Tesla’s total workforce of almost 23,000 in the area where its gigafactory and headquarters are located.
However, Mr Musk sought to downplay the move.
“Tesla has now created over 30,000 manufacturing jobs in California!” he said in a post on his social media platform X, formerly Twitter, on Tuesday.
Another 285 jobs will be lost in New York.
Tesla’s total workforce stood at more than 140,000 late last year, up from around 100,000 at the end of 2021, according to the company’s filings with US regulators.
Musk’s salary
The car firm is also facing other issues, with a struggle over Mr Musk’s compensation still raging on.
On Wednesday, Tesla asked shareholders to vote for a proposal to accept Mr Musk’s compensation package – once valued at $56bn – which had been rejected by a Delaware judge.
The judge found Tesla’s directors had breached their fiduciary duty to the firm by awarding Mr Musk the pay-out.
Due to the fall in Tesla’s stock value, the compensation package is now estimated to be around $10bn less – but still greater than the GDP of many countries.
In addition, Tesla wants its shareholders to agree to the firm being moved from Delaware to Texas – which Mr Musk called for after the judge rejected his payday.
Business
Stock market today: Nasdaq futures pop, Tesla surges after earnings with more heavyweights on deck
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Tech stocks rose on Wednesday, outstripping the broader market as investors welcomed Tesla’s (TSLA) cheaper car pledge and waited for the next rush of corporate earnings.
The Nasdaq Composite (^IXIC) rose roughly 0.6%, coming off a sharp closing gain. The S&P 500 (^GSPC) was up 0.2%, continuing a rebound from its longest losing streak of 2024, while the Dow Jones Industrial Average (^DJI) fell 0.1%.
Tesla shares jumped nearly 12% after the EV maker’s vow to speed up the launch of more affordable models eclipsed its quarterly earnings and revenue miss. That cheered up investors worried about growth amid a strategy shift to robotaxis and the planned cancellation of a cheaper model.
The results from the first “Magnificent Seven” to report have intensified the already high hopes for Big Tech earnings, that the megacaps can revive the rally in stocks they powered. The spotlight is now on Meta’s (META) report due after the market close, as the Facebook owner’s shares rose after the Senate voted for a potential ban on rival TikTok. Microsoft (MSFT) and Alphabet (GOOG) next up on Thursday.
Meanwhile, Boeing (BA) reported better than expected first quarter results before the opening bell with a loss per share of $1.13, narrower than the $1.72 estimated by Wall Street. Shares rose about 2% in morning trade.
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