MONTREAL – A transportation analyst says Canada’s two large railways outperformed their U.S. rivals in the fourth quarter with freight volumes rising 2.6 per cent on strong intermodal, agricultural products and chemicals carloads.

Walter Spracklin of RBC Capital Markets said American railroads sustained a 1.8 per cent volume decrease on challenging coal markets.

While the volume trends were in line with guidance provided by the railways in the third quarter, Spracklin is raising his earnings forecast for Montreal-based Canadian National Railway (TSX:CNR) by four per cent to $1.45 per share on superior volume trends. Continue…