MEMPHIS, Tenn. — A former Memphian expects to bring some Southern informality to the executive suite of Canadian National Railway Company as he takes over as the company’s president and chief executive officer, the Memphis Commercial Appeal reported.
But otherwise, E. Hunter Harrison, who was elected president of CN this month, said in a recent press conference that he expects to make few changes.
Harrison replaced Paul Tellier, who took a similar position at Bombardier Inc., a Quebec-based jet manufacturer. Tellier had presided over Montreal-based CN’s 1998 acquisition of Illinois Central, where Harrison had served as CEO.
“I’m a little more informal,” said Harrison, who previously served as CN’s chief operating officer. “Paul has been a little more focused externally or globally. I need to improve a little on maybe some of my weaknesses and continue to leverage some of my strengths.”
Harrison began his railroad career in 1964 as a laborer in the Frisco Railroad while attending college at what is now the University of Memphis. He graduated in 1967 and rose through the ranks at the Frisco Railroad and Burlington Northern, which bought the Frisco in 1980.
The market valued the CN-IC deal at $3 billion, but a proposed $6.2 billion merger between CN and Burlington Northern Santa Fe Corp. fell through in 2000 because of regulatory delays.
CN employs about 300 people in Memphis, but in 2001, it backed out of negotiations to become the anchor tenant for a 1,000-acre Super Terminal in Southwest Memphis, south of Presidents Island.
In this month’s press conference, reporters wondered if the change at the top of CN might accelerate consolidation of railroad companies.
“There are those who will tell you it’s inevitable and those who will tell you the hurdles have been raised a little too high in Washington,” Harrison responded. “My personal view is that it will eventually take place. I think it’s a matter of timing. There are some real opportunities to have streamlined services. . . . If I were to make a prediction, it would be that you would see that over the next five years.”
But Harrison said he does not believe the exit of Tellier and John W. Snow — the former CSX CEO who was recently appointed Treasury secretary — from the railroad industry affects the speed of consolidation.
In answer to a Canadian reporter’s question, Harrison said his company has no plans to relocate its headquarters. With a home in Chicago, Harrison said he plans to establish a residence in Montreal.
“The transition from Paul’s leadership to mine will in no way . . . distract us from our mission of running a scheduled railroad and leveraging that strength into continued customer satisfaction, sustainable, profitable growth, and continue to work diligently on enhancing shareholder value.”