CN Agreement With Municipal Rail Group Preserves Light-Density Saskatchewan Grain Line.Business Editors WINNIPEG, Manitoba--(BUSINESS WIRE)--May 1, 2002 Canadian National (NYSE NYSE See: New York Stock Exchange :CNI (1) (Certified NetWare Instructor) See Novell certification. (2) (Coalition for Networked Information, Washington, DC, www.cni.org) A partnership of the Association of Research Libraries, CAUSE and EDUCOM, founded in 1990. ) (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). :CNR.) today announced an innovative 20-year agreement to lease its 46-mile Cudworth subdivision in Saskatchewan to Wheatland Railway Inc. Wheatland Railway was established by six north central Saskatchewan municipalities to preserve rail service to their communities. The lease takes effect on Aug. 1, 2002. Wheatland Railway will be responsible for line maintenance and for securing originating traffic - mostly farmer-loaded grain cars - on the line. CN will be Wheatland Railway's sole provider of rail service and contractor for the duration of the lease. To meet Wheatland Railway's requirements for flexible low-cost service, CN has designed a creative service plan that will employ CN personnel and equipment during specific off-peak times. Rail service will originate from Humboldt, Sask., on weekends or at night on weekdays when local assets are generally available owing to the discipline of CN's scheduled freight operations. Wheatland Railway will use CN's usual car-ordering procedures to forecast and obtain cars. "This agreement is another example of the fresh and innovative thinking CN is bringing to the problem of low-density grain branch lines in Saskatchewan," said Francois Hebert, CN vice-president, corporate development. "It reflects CN President and Chief Executive Officer Paul Tellier's commitment a year ago to Saskatchewan Premier Lorne Calvert that CN would work with farm groups and rural communities to find economically viable ways to maintain rail service on low-traffic lines." With the lease agreement, municipalities represented by Wheatland have agreed to withdraw an appeal regarding the line's net salvage value Net salvage value The after-tax net cash flow for terminating the project. that had been submitted to the Federal Court of Appeal, as well as a petition to the federal cabinet of Canada The Cabinet of Canada (French: Cabinet du Canada) plays an important role in the Government of Canada in accordance with the Westminster System. A council of ministers of the Crown chaired by the Prime Minister, the Cabinet is the senior echelon of the Ministry. . This will conclude the line abandonment process under the Canada Transportation Act. Canadian National Railway Company Canadian National Railway Company (NYSE: CNI, TSX: CNR) is a Canadian rail transportation company that operates the Canadian National Railway. It was created in December, 1918 as a Crown corporation of the Government of Canada to nationalize several bankrupt rail systems spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico Noun 1. Gulf of Mexico - an arm of the Atlantic to the south of the United States and to the east of Mexico Golfo de Mexico Atlantic, Atlantic Ocean - the 2nd largest ocean; separates North and South America on the west from Europe and Africa on the east , serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key cities of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, Jackson, Miss., with connections to all points in North America. |
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