And thats just the way the math works in the model. And I wanted to get your perspective on do you
think theres a ceiling on a railroad operating ratio? Or do you think really the growth ultimately will be a function of where that goes, given how high the incremental margins can be in the business relative to where margins are today? Just
getting your perspective on that, I think, would be very helpful.
Keith Creel: Yes. I think if you control your cost and you layer on growth to the
network, then obviously, margins should improve. That said, again, Im not seized or focused on the operating ratio. Its an outcome.
The only
way I get focused and concerned about operating ratio is if it puts me at a competitive disadvantage If it puts my cost basis to a point where I cant compete in a lane for my customer and make a buck doing it and earn cost of capital and
reinvest in the network, so we can continue to provide good paying jobs and growth and all those things our customers and employees expect, then Im concerned.
And Ive lived that world. Thats why I came to CP. We were at a competitive disadvantage in a dramatic way to our primary competitor in Canada. We
didnt have the money, the cash flow to invest in the rail infrastructure. We took holidays on ballast. We pushed ties. We robbed Peter to pay Paul for a lack of a better term to pay the power deal. Thats not a place for a business to
sustain long-term by building success.
And thats what rail works out to do. Its a capital-intensive business. It requires a lot of
investment, continually to run it safely and efficiently and to continue to create capacity for todays traffic as well as tomorrows growth. And thats what PSR allows us to do. Its about, again, controlling costs, turning
assets, strategic investments so that you can grow and still provide great jobs for your employees, high-paying jobs for your employees.
In fact, some of
the highest paid jobs, if you look at what a lot of our employees make. Its they work their tails off, but they enjoy a high standard of living. So we want to continue to do that. And in fact, we want to do more of that. We run the
business the right way. We grow, we bring this business on to this network that were talking about and that I believe will exceed those expectations.
Then yes, were going to have margin improvement along the way. But again, its an outcome. Im not going to be concerned with it. Im
concerned about growth. Im concerned about earnings growth as well, job growth for our employees and allowing our customers to grow in their markets and win with our superior service.
And I think if you do that, the customers are going to be happy, the employees are going to be happy, the regulator is going to be happy.
Okay. Let me wrap it up and again, let me finish where I started. Were excited to be in Kansas City. This is a marriage that we have been
weve been courting KCS for a while now. Weve had to really work hard. Were tickled to be here. Were not taking it for granted. We feel blessed to have this opportunity, and were excited to get to work as a CPKC family
to create unique, compelling value across the entire stakeholder base, for all stakeholders, not for 1 individual.
Thank you for your time. We look
forward to seeing you out on the property. We talk soon.
Operator: This concludes todays conference call. You may disconnect your lines.