Written by: William C. Vantuono, Editor-in-Chief Keith Creel has assumed his new role as President and Chief Executive Officer of Canadian Pacific, becoming the 17th person to lead the railroad since its founding in 1881. Creel assumes the position held by fellow railroader and long-time mentor Hunter Harrison, who has retired from CP and is currently investigating another opportunity within the North American rail industry. Creel was appointed CP President and Chief Operating Officer in February 2013 and joined the CP Board of Directors in May 2015. He previously served as Executive Vice President and COO of CN. He held various positions at CN including EVP Operations, Senior VP Eastern and Western Regions, and VP Prairie Division. Creel began his railroad career at Burlington Northern Railway in 1992 as an intermodal ramp manager in Birmingham, Ala. He also spent part of his career at Grand Trunk Western Railroad as a superintendent and general manager and at Illinois Central Railroad as a trainmaster and director of corridor operations, prior to its merger with CN in 1999. His professional association with Harrison began at the BN. Creel, 47, obtained a Bachelor of Science in Marketing from Jacksonville State University. He also completed the Advanced Management Program at the Harvard Business School. He has a military background as a commissioned officer in the U.S. Army, during which time he served in the Persian Gulf War in Saudi Arabia. “I am humbled, honored and blessed to be leading CP,” Creel said. “I look forward to working closely with employees, customers, shareholders, government and community leaders, and other key stakeholders as we continue to build the iconic CP brand—a brand built on service, safety and doing what we say we will do. As a result of our dedication to safety, in 2016 we celebrated our lowest train accident frequency ever. Still, we acknowledge that one incident is too many and we will continue to hold ourselves and others accountable when it comes to safety. To be leading such an iconic company as Canada celebrates its 150 anniversary is truly special. CP has a proud history and I am privileged to stand alongside today’s railroaders to build an even brighter future.” “This transition has been planned since Keith’s arrival back in 2013 and we are confident in his abilities to lead the company,” said Andrew F. Reardon, Chairman of the Board. “Under Hunter Harrison's leadership, CP built a strong foundation for future success; that foundation, together with Keith’s passion for railroading, operational expertise and commitment to customer service and safety, positions the company well for many years to come.” Hunter Harrison, 72, a two-time Railway Age Railroader of the Year (2015 and 2002), has teamed up with activist investor Paul Hilal, who last year left William Ackman’s Pershing Square Capital Management LP to launch his own activist fund, Mantle Ridge LP. CSX is discussing a settlement with Harrison and Hilal that could make Harrison CSX’s CEO, according to the Wall Street Journal. The parties reportedly are discussing Mantle Ridge’s request for more than three CSX board seats, but CSX is said to be unwilling to hand over that many seats. Mantle Ridge is acquiring a large stake in CSX with the hope of installing Harrison to improve the company’s performance, and has raised more than $1 billion for its CSX stake. According to Reuters, “any push to quickly replace CSX CEO Michael Ward, who plans to retire in 2019, would need to occur before the company’s Feb. 10 director nomination deadline. If the two sides fail to strike a deal, Hilal may be forced to nominate a slate of directors who can put Harrison in the CEO seat. Harrison’s track record of cutting operating costs and driving up profitability at the helm of CP and at CN has helped CSX shares surge 30% since news of the Mantle Ridge plan surfaced.” Many industry observers believe that a Harrison-led CSX and a Creel-led CP will eventually merge, forming a U.S.-Canada transcontinental and triggering a final round of Class I mergers. For additional analysis, see “Does CSX need the ‘HH cure?” and “EHH: Is CSX next? Let the speculation begin.” Continue reading...
