CN (TSX:CNR) (NYSE:CNI) today announced that it plans to acquire
1,000 new generation high-cube grain hopper cars over the next two
years to rejuvenate the aging equipment needed to serve increasing
annual crop yields.
“This substantial investment in higher capacity
payload hopper cars, with up to 10 per cent more capacity than the
older generation, demonstrates our commitment to safely,
efficiently and reliably moving the steadily increasing Prairie
grain crop for our customers,” said JJ Ruest, interim president and
chief executive officer of CN. “We clearly understand how important
having an effective grain supply chain is to our nation’s
reputation as a stable trade partner. With this week’s news of
regulatory certainty, we can now make decisive long-term
investments that will benefit the entire grain industry.”
“I am very pleased to hear that CN is using the
positive conditions brought in by Bill C-49,
the Transportation Modernization Act, to invest in new hopper
cars. This decision will help grow the agricultural sector by
ensuring farmers are able to reliably get their products to
market,” said Canada’s Minister of Agriculture and Agri-Food,
Lawrence MacAulay.
CN is buying new, 55-foot eight-inch jumbo
hopper cars with 5,431 cubic feet of capacity. CN’s 12,000-car
Western Canadian grain fleet is comprised of CN-owned hoppers,
leased cars and private customer equipment. The new hopper cars
will allow the phase out of older, lower-capacity cars from the
CN-owned and leased fleet, which has an average age of more than 30
years.
“Canada’s grain hopper cars are rolling toward
the end of their lives,” said Kyle Jeworski, president and chief
executive officer of Viterra. “Over the last several years, Viterra
has made significant, targeted investments in its country grain
elevator network, and we welcome this major investment and
commitment by CN to get Prairie grain to world markets.”
The cars will be built by National Steel Car
Ltd. at the company’s Hamilton plant.
“We are very pleased that CN recognizes the
benefits of our industry leading, high efficiency, 5,431-cubic-foot
grain hopper car. As a result of this order commitment from CN,
National Steel Car’s Hamilton assembly operations will add over 300
new full-time employment opportunities,” said Gregory J. Aziz,
chairman and chief executive officer of National Steel Car.
“Coupled with CN’s order for 350 centrebeam lumber cars, this
additional 1,000 grain car purchase will result in the hiring of
more than 550 additional people at our Hamilton facility, which
currently employees over 1,500.”
Bob Bratina, Member of Parliament for Hamilton
East – Stoney Creek, said: “Thank you very much CN for your strong
vote of confidence in Hamilton and its highly-skilled workers. We
are extremely proud to have CN in our community and grateful they
have chosen National Steel Car to build the rail cars moving the
North American economy.”
As part of CN’s $3.4 billion capital program in
2018, the company is investing in new trade-enabling infrastructure
this spring and summer, including building $400 million worth of
new track and yard capacity to more efficiently handle increased
traffic across CN’s West Coast to Chicago corridor.
CN recently purchased 200 new GE locomotives to
expand capacity for all customers, the first 60 of which will start
to come online in June. Also, this year CN is acquiring 350 new
lumber cars and leasing 350 new boxcars to boost our fleet serving
forest products and metals business.
CN continues to hire, and approximately 1,250
more qualified train conductors will be in the field before next
winter, compared to the number of conductors available heading into
this past winter.
Forward-Looking Statements
Certain statements included in this news release constitute
“forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and under
Canadian securities laws. By their nature, forward-looking
statements involve risks, uncertainties and assumptions. The
Company cautions that its assumptions may not materialize and that
current economic conditions render such assumptions, although
reasonable at the time they were made, subject to greater
uncertainty. Forward-looking statements may be identified by the
use of terminology such as “believes,” “expects,” “anticipates,”
“assumes,” “outlook,” “plans,” “targets,” or other similar
words.
Forward-looking statements are not guarantees of
future performance and involve known and unknown risks,
uncertainties and other factors which may cause the actual results
or performance of the Company to be materially different from the
outlook or any future results or performance implied by such
statements. Accordingly, readers are advised not to place undue
reliance on forward-looking statements. Important risk factors that
could affect the forward-looking statements include, but are not
limited to, the effects of general economic and business
conditions; industry competition; inflation, currency and interest
rate fluctuations; changes in fuel prices; legislative and/or
regulatory developments; compliance with environmental laws and
regulations; actions by regulators; increases in maintenance and
operating costs; security threats; reliance on technology and
related cybersecurity risk; trade restrictions or other changes to
international trade arrangements; transportation of hazardous
materials; various events which could disrupt operations, including
natural events such as severe weather, droughts, fires, floods and
earthquakes; climate change; labor negotiations and disruptions;
environmental claims; uncertainties of investigations, proceedings
or other types of claims and litigation; risks and liabilities
arising from derailments; timing and completion of capital
programs; and other risks detailed from time to time in reports
filed by CN with securities regulators in Canada and the United
States. Reference should be made to Management’s Discussion and
Analysis in CN’s annual and interim reports, Annual Information
Form and Form 40-F, filed with Canadian and U.S. securities
regulators and available on CN’s website, for a description of
major risk factors.
Forward-looking statements reflect information
as of the date on which they are made. CN assumes no obligation to
update or revise forward-looking statements to reflect future
events, changes in circumstances, or changes in beliefs, unless
required by applicable securities laws. In the event CN does update
any forward-looking statement, no inference should be made that CN
will make additional updates with respect to that statement,
related matters, or any other forward-looking statement.
CN is a true backbone of the economy whose team
of approximately 25,000 railroaders transports more than C$250
billion worth of goods annually for a wide range of business
sectors, ranging from resource products to manufactured products to
consumer goods, across a rail network of approximately 20,000
route-miles spanning Canada and mid-America. CN – Canadian National
Railway Company, along with its operating railway subsidiaries –
serves the cities and ports of Vancouver, Prince Rupert, B.C.,
Montreal, Halifax, New Orleans, and Mobile, Ala., and the
metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary,
Chicago, Memphis, Detroit, Duluth, Minn./Superior, Wis., and
Jackson, Miss., with connections to all points in North America.
For more information about CN, visit the Company’s website at
www.cn.ca.
CN
Contacts: |
|
Media
|
Investors |
Patrick
Waldron |
Paul Butcher |
Senior Manager
|
Vice-President |
Media
Relations |
Investor Relations |
(514)
399-8803 |
(514) 399-0052
|
Canadian National Railway (NYSE:CNI)
Historical Stock Chart
From Mar 2024 to Apr 2024
Canadian National Railway (NYSE:CNI)
Historical Stock Chart
From Apr 2023 to Apr 2024