CN (TSX: CNR) (NYSE: CNI) announces that it has set a new record
for the movement of Canadian grain and processed grain products via
carload with over 31 million metric tonnes (“MMT”) moved
during the 2020-2021 crop year. CN also filed and published its
2021-2022 Grain Plan on Friday July 30.
This record exceeds the previous record for
carload movement of 29.4 MMT set in the 2019–2020 crop year. CN
also moved over 1.1 MMT of grain from Western Canada via
containers, with grain volumes moved from Eastern Canada in
addition to these levels.
“As an essential transportation service to the
economy, to our customers, supply chain partners, and the
communities we serve, we remain committed to making
capacity-enhancing investments to our network and to upgrade our
rolling stock. These investments benefit our grain customers, as
well as all those from the other sectors we serve. CN’s grain
movement has been resilient during the pandemic, achieving 14
straight months of Canadian grain volume shipment records. We
recognize that growing conditions across much of the Prairies have
been very challenging as many producers face extremely hot and dry
weather this year. Our dedicated team of railroaders will continue
to work tirelessly with Canadian farmers, agri-organizations and
grain customers to have the resources in place to move the upcoming
harvest for the communities we proudly serve.”
- JJ Ruest,
President and Chief Executive Officer, CN
Details of CN’s record success can be found in
its annual Grain Plan, entitled From Farm to Market. This is the
fourth year CN has produced a Plan in conjunction with key industry
stakeholders. The Plan reviews CN’s performance during the previous
crop year, assesses CN’s ability to move anticipated levels of
grain during the upcoming crop year, and outlines specific steps
that CN is taking to ensure it has the necessary capacity to move
grain safely and efficiently for the benefit of farmers, customers
and supply chain partners. The Grain Plan is also available on CN’s
website at www.cn.ca/grain. CN will continue to publish
monthly updates to the Plan.
In May 2021, CN announced its plans to acquire
1,000 new-generation, high-capacity, grain hopper cars. These
innovative railcars will help meet the growing needs of grain
farmers and grain customers, and are part of a larger 3,500 hopper
car fleet renewal program over the next three years. Building
on CN’s on-going grain hopper car fleet renewal program that began
in 2018, CN’s new generation fleet will grow to 6,000 hopper cars.
During the last five years, CN has invested more than C$15 billion
in capital equipment and infrastructure to ensure it has the
network capacity to meet the needs of our customers. CN’s overall
investment plan reflects its determination to play a leading role
in the economic recovery and to be part of the climate
solution.
The proposed CN-Kansas City Southern combination
will introduce new options for Canadian farmers and grain costumers
to ship both grain and processed grain products. It will create a
new single-line service to a wider array of destinations in the
U.S. and Mexico, and will also create an end-to-end transportation
network across North America, enhancing competition, spurring
economic growth and delivering benefits to the local communities in
which both railroads operate. To learn more about the CN-KCS
combination, please visit www.connectedcontinent.com.
About CNCN is a world-class
transportation leader and trade-enabler. Essential to the economy,
to the customers, and to the communities it serves, CN safely
transports more than 300 million tons of natural resources,
manufactured products, and finished goods throughout North America
every year. As the only railroad connecting Canada’s Eastern and
Western coasts with the U.S. South through a 19,500-mile rail
network, CN and its affiliates have been contributing to community
prosperity and sustainable trade since 1919. CN is committed to
programs supporting social responsibility and environmental
stewardship.
Forward Looking
StatementsCertain 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, including statements
based on management’s assessment and assumptions and publicly
available information with respect to CN and KCS, regarding the
proposed transaction between CN and KCS, the expected benefits of
the proposed transaction and future opportunities for the combined
company. By their nature, forward-looking statements involve risks,
uncertainties and assumptions. CN 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 risks, uncertainties and other
factors which may cause actual results, performance or achievements
of CN, or the combined company, to be materially different from the
outlook or any future results, performance or achievements 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 in this
news release include, but are not limited to: the outcome of the
proposed transaction between CN and KCS; the parties’ ability to
consummate the proposed transaction; the conditions to the
completion of the proposed transaction; that the regulatory
approvals required for the proposed transaction may not be obtained
on the terms expected or on the anticipated schedule or at all;
CN’s indebtedness, including the substantial indebtedness CN
expects to incur and assume in connection with the proposed
transaction and the need to generate sufficient cash flows to
service and repay such debt; CN’s ability to meet expectations
regarding the timing, completion and accounting and tax treatments
of the proposed transaction; the possibility that CN may be unable
to achieve expected synergies and operating efficiencies within the
expected time-frames or at all and to successfully integrate KCS’
operations with those of CN; that such integration may be more
difficult, time-consuming or costly than expected; that operating
costs, customer loss and business disruption (including, without
limitation, difficulties in maintaining relationships with
employees, customers or suppliers) may be greater than expected
following the proposed transaction or the public announcement of
the proposed transaction; the retention of certain key employees of
KCS may be difficult; the duration and effects of the COVID-19
pandemic, general economic and business conditions, particularly in
the context of the COVID-19 pandemic; 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; the
adverse impact of any termination or revocation by the Mexican
government of KCS de México, S.A. de C.V.’s Concession; 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 illegal blockades of rail networks, and
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 also 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 relating to CN.
Additional Information and Where to Find
It
In connection with the proposed transaction, CN
has filed with the U.S. Securities and Exchange Commission (“SEC”)
a registration statement on Form F-4 to register the shares to be
issued in connection with the proposed transaction, and the
registration statement has been declared effective. CN has filed
with the SEC its prospectus and KCS has filed with the SEC its
definitive proxy statement in connection with the proposed
transaction, and the KCS proxy statement is being sent to the
stockholders of KCS seeking their approval of the merger-related
proposals. This news release is not a substitute for the
registration statement, the prospectus, the proxy statement or
other documents CN and/or KCS may file with the SEC or applicable
securities regulators in Canada in connection with the proposed
transaction.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ
THE REGISTRATION STATEMENT, THE PROSPECTUS, THE PROXY STATEMENT AND
ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC OR APPLICABLE
SECURITIES REGULATORS IN CANADA CAREFULLY IN THEIR ENTIRETY IF AND
WHEN THEY BECOME AVAILABLE (INCLUDING ALL AMENDMENTS AND
SUPPLEMENTS THERETO) BECAUSE THEY CONTAIN AND WILL CONTAIN
IMPORTANT INFORMATION ABOUT CN, KCS AND THE PROPOSED TRANSACTION.
Investors and security holders may obtain copies of these documents
(if and when available) and other documents filed with the SEC and
applicable securities regulators in Canada by CN free of charge
through at www.sec.gov and www.sedar.com. Copies of the documents
filed by CN (if and when available) will also be made available
free of charge by accessing CN’s website at www.CN.ca. Copies of
the documents filed by KCS (if and when available) will also be
made available free of charge at www.investors.kcsouthern.com, upon
written request delivered to KCS at 427 West 12th Street, Kansas
City, Missouri 64105, Attention: Corporate Secretary, or by calling
KCS’ Corporate Secretary’s Office by telephone at 1-888-800-3690 or
by email at corpsec@kcsouthern.com.
ParticipantsThis news release
is neither a solicitation of a proxy nor a substitute for the
registration statement, the prospectus, the proxy statement or
other filings that may be made with the SEC and applicable
securities regulators in Canada. Nonetheless, CN and certain of
their directors and executive officers and other members of
management and employees may be deemed to be participants in the
solicitation of proxies in respect of the proposed transaction.
Information about CN’s executive officers and directors is
available in its 2021 Management Information Circular, dated March
9, 2021, as well as its 2020 Annual Report on Form 40-F filed with
the SEC on February 1, 2021, in each case available on its website
at www.CN.ca/investors/ and at www.sec.gov and www.sedar.com.
Additional information regarding the interests of such potential
participants is or may be included in the registration statement,
the prospectus, the proxy statement or other documents filed with
the SEC and applicable securities regulators in Canada if and when
they become available. These documents (if and when available) may
be obtained free of charge from the SEC’s website at www.sec.gov
and from www.sedar.com, as applicable.
Contacts:
Media |
Investment
Community |
Mathieu Gaudreault |
Paul Butcher |
Senior Advisor |
Vice-President |
Media Relations |
Investor Relations |
1-833-946-3342media@cn.ca |
(514)
399-0052investor.relations@cn.ca |
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