30 November 2006
CPR's Green Shifts Executive Ranks
Calgary Alberta - Fred Green is putting his stamp on
Canadian Pacific Railway Ltd., dropping four executives from management's inner circle and forming new teams as the company seeks to
become leaner.
Mr. Green, appointed CPR's chief executive officer six months ago, wants to improve the railway's performance as it copes with limited
tracks in the United States.
"To build even greater strength, we must draw from the full range of talent available to us," Mr. Green said in an internal
memo to staff.
Dropped from the railway's management committee are: Paul Clark, vice-president of communications and public
affairs; Brian Grassby, vice-president and comptroller; Tracy Robinson, vice-president and treasurer; and
Don Barnhardt, corporate secretary.
But four executives have joined the 11-person committee led by Mr. Green: Jane O'Hagan, vice-president
of strategy and external affairs; Brock Winter, senior vice-president of operations; Jonathan Legg,
vice-president of strategic sourcing; and Donald Campbell, vice-president of corporate planning.
Mr. Green issued his memo as Calgary-based CPR seeks growth prospects. Its tracks in the United States are limited to
portions of the Midwest and Northeast.
By contrast, Montreal-based Canadian National Railway Co. runs a continental rail network that extends to the Gulf of Mexico.
Mr. Green is determined to expand CPR to take advantage of bustling Asian trade, and analysts said yesterday that he could do so by
either buying smaller U.S. lines or signing co-operation pacts to share tracks with rivals, perhaps with Union Pacific
Corp. of Omaha.
In his memo, Mr. Green said he is creating two new groups: The "human resources committee" to oversee employee
relations and the "strategic issues forum" to generate "new ideas from all ranks and job functions, to generate growth
and company development."
To help decentralize decision-making powers, "the new committees will have the authority and the responsibility to
ensure we maximize our potential in all areas," said Mr. Green, who joined CPR in 1978. He took over as CEO in May, when Robert
Ritchie retired after 11 years in the top job.
An "operating committee" has been revamped to take on greater importance. Michael Lambert, CPR's new chief financial offer
and former president at retailer Mark's Work Wearhouse Ltd., is among the eight members of the operating committee, which includes Mr.
Grassby and Ms. Robinson. Mr. Lambert is also on the management committee.
Randy Cousins, an analyst with BMO Nesbitt Burns Inc., said Mr. Green recognizes that CPR runs a good route to the U.S. Midwest from
Western Canada, but there are limitations.
"Fred Green wants to leave his mark," Mr. Cousins said. "The challenge is that CPR's tracks effectively stop around
Chicago."
Business has surged at both CPR and CN over the past three years, spurred by an Asian trade bonanza, said veteran transportation
consultant Greg Gormick.
Yesterday, CN said its capital spending budget in 2007 will rise 4 percent to $1.6-billion, including work to handle
traffic at a container terminal being built at the Port of Prince Rupert in northern B.C.
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