E. Hunter Harrison, who incited around 3 tyrannise carriers during a five-decade career before being tapped by CSX Corp. to urge a company’s muted performance, has died days after taking medical leave. He was 73.
Harrison died in Wellington, Florida, on Saturday from complications from a new illness, a association pronounced in a statement.
“Hunter was a larger-than-life figure who brought his conspicuous passion, knowledge and appetite in railroading to CSX,” a association said. “The whole CSX family mourns this loss.”
Harrison, who had heart bypass medicine in 1998, spasmodic used a unstable oxygen tank to provide crispness of breath. The association announced on Dec. 14 that he would take time off from his duties as arch executive officer — news that sent shares down roughly 8 percent — and named Jim Foote as behaving CEO.
“The Board is assured that Jim Foote, as behaving arch executive officer, and a rest of a CSX group will gain on a changes that Hunter has made,” CSX house of directors authority Edward Kelly pronounced in a statement.
By relying on a plan of slicing costs and implementing procedures to make all tools of a operation some-more efficient, Harrison remade Canadian Pacific Railway Ltd., Canadian National Railway Co. and Illinois Central Corp. into rail attention leaders. His repute among analysts and investors was so clever that CSX shares jumped 23 percent on a singular day in Jan 2017 when reports emerged that Harrison was in talks to take a helm.
At Illinois Central, Harrison gained celebrity for building an proceed he called “precision railroading,” violation with a customary attention use of holding trains until they were full. The approach, that involves using shipments on bound timetables to safeguard arguable deliveries, was a newness in a North American attention during a time.
“Hunter is a mythological railroader, and for good reason,” Lee Klaskow, a Bloomberg Intelligence analyst, pronounced in a 2017 interview. “The Canadian railroads have some of a lowest handling ratios, that is driven by his truth — pointing railroading. He wrote a playbook on efficiency.”
In his 2005 book, “How We Work and Why: Running a Precision Railroad,” Harrison laid out his core beliefs for using a rail carrier: service, cost control, item utilization, reserve and people. The volume is still compulsory reading for anyone removing into a industry.
“This book is about using a best damn tyrannise in a business,” he wrote. “Run a parsimonious ship, and we can design a reasonable return; conduct it badly, and a perfect weight of resources will penetrate you.”
Precision railroading “is germane to any railroad,” Harrison told Bloomberg News in a Jan 2012 interview.
Harrison some-more than tripled net income during his 7 years as Canadian National CEO. When he left a association during a finish of 2009, it spent a small some-more than 67 cents on losses for each dollar of sales, down from 76 cents during a finish of 2002. Harrison was “ transformative,” Luc Jobin, a company’s boss and CEO, pronounced in a statement.
‘Best Railroader Ever’
In his four-and-a-half years as CEO of Canadian Pacific, Harrison remade a conduit from a worst-performing vital North American tyrannise to a second-best — trailing usually his former employer, Canadian National. When he left Canadian Pacific in Jan 2017, a company’s marketplace capitalization stood during about C$28.2 billion ($22 billion) — about C$15 billion some-more than when he took over.
“We’re going to do some-more with less,” Harrison told investors during a display in Dec 2012, reduction than 6 months after holding over Canadian Pacific. “We’re going to make those resources unequivocally sweat.”
Harrison cut staff and pushed a tyrannise to run longer and faster trains to revoke fuel and labor costs. He also revamped a executive team, while shutting several mound yards — used to apart and arrange rail cars — and inter-modal terminals in cities including Chicago and Milwaukee to set a theatre for intensity land sales.
“Professionally, Hunter was unmatched in this industry. He will go down as a best railroader ever, plain and simple,” Keith Creel, boss and CEO of Canadian Pacific, pronounced in a statement. “His bequest will be felt during a association forever.”
CP will reduce a flags to half-mast opposite a network to respect Harrison, pronounced Creel, who worked underneath Harrison during 3 opposite companies.
CSX, spurred on by a shareholders, hired Harrison dual months after he quit Canadian Pacific and authorized picking adult a $84 million payout that he left on a table.
Ewing Hunter Harrison was innate in Memphis, Tennessee, on Nov. 7, 1944. He began his career in 1963 as an 18-year-old carman-oiler for St. Louis-San Francisco Railway Co., lubricating sight wheels while attending a University of Memphis. He changed to Illinois Central in 1989 as arch handling officer, fasten Canadian National when it acquired a Chicago-based conduit in 1998.
Harrison was twice named “Railroader of a Year” by Railway Age repository — in 2002, while portion as Canadian National’s arch handling officer, and in 2014 for his purpose during Canadian Pacific — apropos one of usually a handful of executives to win a endowment twice.
His health emerged as a regard for investors after he assimilated Canadian Pacific. In 2015, Harrison engaged pneumonia and missed several weeks of work after undergoing medicine to have stents ingrained in his legs. In 2017, before being allocated by CSX, he incited down a company’s ask that an eccentric medicine designated by a house examination his medical records. Even so, Harrison infrequently compulsory “supplemental oxygen” to fight crispness of breath, CSX Chief Financial Officer Frank Lonegro pronounced during an financier discussion in May 2017.
For all his successes as CEO, Harrison never managed to lift off a mega-merger that would have combined a truly transcontinental railroad. While during Canadian Pacific, Harrison twice tried, and failed, to buy CSX, initial in 2014 and again in 2016.
“I’m not disturbed about my bequest of formulating some durability merger,” Harrison told analysts about tyrannise mergers in Apr 2016. “That’s not what I’m about. I’m many some-more about formulating shareholder value.”
After his retirement from Canadian National in 2009, Harrison spent dual years lifting and training horses during his farms in Ridgefield, Connecticut, and Wellington, Florida. He also served as authority of a National Horse Show Association of America.
Still, when romantic financier Bill Ackman approached him in late 2011 to run Canadian Pacific, a event valid too tantalizing to spin down. Harrison was eventually hired by Canada’s second-largest tyrannise in 2012 after Ackman engineered a boardroom manoeuvre to reject then-CEO Fred Green.
“I attempted other things, and we missed a work,” Harrison pronounced in a Jan 2012 talk with Bloomberg News. He affianced to stay during Canadian Pacific “as prolonged as I’m indispensable to spin a classification in a right instruction and build some sustainability. This is not some kind of one-time shot to do something overnight.”
While Harrison’s potency expostulate rewarded investors, many shippers felt it did so during their expense. Inconsistent service, bad communication and a miss of accessible railcars were among a many visit complaints in a 2015 consult of shippers by RBC Capital Markets. Thirty 7 percent of respondents in a RBC check that year pronounced use during Canadian Pacific was poor, while usually 16 percent deemed it to be good.
Harrison’s signature Tennessee gusto and infrequently blunt denunciation done him a favorite of analysts and investors. In 2013, describing his initial few months as CEO of Canadian Pacific, he likened his swell to that of a U.S. Civil War general, observant he “kind of went by Canada maybe like Sherman went by Atlanta.”
Harrison and his wife, Jeannie, had dual children. “We suffer with them in a extensive detriment of a one-of-a-kind railroader and even improved person,” pronounced CP’s Creel.
— With assistance by Thomas Black