So, I think we’ll be closer to call it a 4% level rather than that 7% level. And I think that’s what gives me confidence in our ability to price above inflation. We’re still getting strong pricing. John and his team have done an excellent job. It’s just it’s been a high bar this year in particular just because of the, call it, one time nature of some of the labor increases.
Operator: Our next question comes from Benoit Poirier, Desjardins Capital Markets.
Benoit Poirier: Keith, you provided great color about the opportunities and John about the obviously Mexico, but also great rationale around Vancouver, what’s happening. Could you maybe provide more color about the eastern part of your network? If we look at the Port of Montreal, there’s a upcoming labor agreement with the dock worker. So, I’m just wondering if you are having any discussion with shippers about some potential cargo diversion and whether the Port of St. John could get some volume uptick. And with respect to [indiscernible] expansion, we’ve seen some announcements lately. I know it’s a very long term opportunity, which is having some challenges. But how do you see the potential opportunities for CPKC longer term?
Keith Creel: Benoit, I would say yes. Again, I had the team just recently – overseas meeting with all the various ocean lines and certainly Montreal. And I don’t know, it seems like the annual troubles there with the labor, certainly, was a big topic. Unlike years past, we really didn’t have an option. But now we’ve got a readymade option with a lot of capacity and new equipment and an eager partner in BP World to get after it. So I do believe those backstops in terms of if freight does need to move out of Port of Montreal, St. John presents us now a great opportunity to move that freight. In terms of [indiscernible], as of right now, it’s not a facility or port that we will be looking to serve. Now, who knows, those discussions and the maneuvering of access to the port is ongoing. But frankly, our efforts are focused on continuing to service Port of Montreal and grow St. John. It’s absolutely growing.
Operator: Our final question comes from David Vernon, Bernstein.
David Vernon: I wanted to dig in a little bit to the headcount commentary. Sequentially, it looked like we had headcount growth. And, Nadeem, I think you mentioned we’re going to be coming down on headcount. Can you help us understand kind of what we should be expecting in sort of Q4 for cost per employee and where the heads are shifting and what’s driving sort of the shift? Is this in the transportation function? Is this overhead functions? Is it just moving jobs up and down the bigger network here? I’m just trying to get a sense for what’s happening with the choppiness in the headcount?
Nadeem Velani: Fair question. So, we had anticipated this for some time. I kind of pointed to Q4 as an opportunity to see that inflection. We’ve been ahead of the curve in terms of hiring and training, just given the challenges I think the economy has seen in terms of getting qualified employees and servicing customer. That doesn’t change. But as you see attrition work through our industry and work through our system and as volumes don’t materialize the same way that you can expect grain, for example, we know that it’s going to be a less robust next year than this year. You can make the call in terms of what you do from a hiring and training. And so, there’s some seasonality as well, as I mentioned earlier, in terms of headcount.
And then when you think about the opportunity as far as synergies, we were going to have some natural opportunities as far as headcount on the synergy side. And then, as you get operating leverage, so as you turn to being able to run longer trains, more density, and so forth, you need less employees per GTM, and so the volumes are moving. So it’s a combination of all those factors that’s going to drive a bit of a reduction in headcount sequentially. And as far as comp per employee, somewhat dependent on stock based comp. Now, that’s been a bit of a tailwind near term, who knows where that’s going to end of the year, but kind of mid-single digits is probably a fair estimate as we stand here today.
Operator: We have reached the allotted time for Q&A. Yes, sir. I’d like to turn the call back over you.
Keith Creel: Okay, thank you, operator. Well, listen, thanks for everyone taking the time to spend with us this afternoon. I can say, in closing, that we’re six months into our forever story. And I’m extremely proud of the progress that we’re making, both integrating and executing. We’re realists, we’re not immune to the macro challenges that we’re all facing with this economy. But I can tell you, we’re focused on controlling what we can’t control. And that’s to operate safely always, efficiently, and continue to sell to what is a very unique three nation network that we’ve created that’s allowing us to grow in uniquely at a macro level, be it share shift, be it customer solutions with new markets, be it take trucks off the road in spite of the macroenvironment. And when the macro comes back and turns favorable, now it gets exciting. So we look forward to sharing our fourth quarter results next time we talk in January.
John Brooks: Thank you.
Operator: This concludes today’s conference call. You may now disconnect.
