Canadian Pacific (CP) Chief Operating Officer Keith Creel And CSX Chief Financial Officer Frank Lonegro

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Canadian Pacific (CP) Chief Operating Officer Keith Creel said that due to technological advancements, railroads don’t need as many employees as they used to which should help keep expenses in check

“We use to pay too much for too little.  People would effectively come in 6 hours for 12 hours of pay.  We don’t need as many people.”

CSX Chief Financial Officer Frank Lonegro said driverless locomotive trains will also help to improve efficiency 

“Labor is our largest cost.  In 5 to 10 years, we’ll move to less labor intensity, from two to one person in a cab, and maybe in my lifetime to zero.”

 

 

 

Source: 

http://www.institutionalinvestor.com/article/3548979/banking-and-capital-markets-corporations/railroads-seek-new-routes-to-profit-in-wake-of-commodities-slump.html?ArticleId=3548979&single=true#/.VygoeauCzHg