CN purchases RailAmerica's Alberta short lines for C$26 million.EDMONTON, Alberta -- CN announced today the purchase of the Alberta short-line railways owned by RailAmerica, Inc., of Boca Raton, Fla., for C$26 million in cash. In addition, RailAmerica may receive up to C$4 million in future payments, depending on the development of new business on the acquired railways. CN is buying the Mackenzie Northern Railway The Mackenzie Northern Railway (AAR reporting marks RLGN) was a 602-mile Canadian railway operating in Alberta and the Northwest Territories. It is the northernmost trackage of the contiguous North American railway network. (MKNR MKNR Mackenzie Northern Railway ) and the Lakeland & Waterways Railway (LWR LWR Lower LWR Lutheran World Relief LWR Light Water Reactor LWR Locally Weighted Regression LWR Laser Warning Receiver LWR Launch When Ready LWR Long-Wave Radiation LWR Lakeland & Waterways Railway LWR Long Wavelength Redundant Camera LWR Local Wage Rate ), both located north of Edmonton, following RailAmerica's decision to divest its Alberta short lines. Also included in the transaction is the Central Western Railway (CWR CWR Cabinet War Rooms (UK) CWR Continuous Welded Rail CWR Case Western Reserve (College) CWR California Western Railroad CWR Central Western Railway CWR Center for Whale Research ), a 21-mile railway in east-central Alberta used largely for training purposes that also carries a small amount of agricultural traffic. Except for a small part of the CWR, all of the lines connect with CN's network. CN plans to upgrade MKNR and LWR trackage track·age n. 1. Railway tracks. 2. a. The right of one railroad company to use the track system of another. b. The charge for this right. to improve customer service and rail efficiencies, and to maximize the lines' potential for hauling larger volumes of oil and gas infrastructure building materials, oil sands by-products, minerals, and forest and grain products in northern Alberta. These feeder lines are a good fit for CN's merchandise and bulk commodity businesses at a time of major energy project development in northern Alberta. Operating the LWR will strengthen CN's connection to the Alberta Oil Sands, while the MKNR component will allow CN to participate directly in the proposed natural gas pipeline projects and give the company access to modern on-line grain elevators and pulp plants. The 600-mile MKNR runs north from Smith, Alta., located about 130 miles north of Edmonton, to Hay River, N.W.T. The LWR, which connects with CN in the Edmonton area, has 118 miles of track and extends to Boyle, Alta., where it in turn connects with the Athabasca Northern Railway The Athabasca Northern Railway is a railway running 325 kilometres (0 mi) between Boyle, Alberta and Fort McMurray, Alberta. It is owned by Cando Contracting Limited. It connects with the Canadian National Railway in Boyle. . The Central Western Railway, in east central Alberta, links with CN near Drumheller, Alta. CN began operating the rail lines today, following the close of the transaction with RailAmerica. Together, the railways carried about 50,000 carloads of freight last year and employed roughly 130 people who today join a larger organization with a strong interest in growing traffic on these rail lines. CN will honour the existing collective agreements of the acquired railways. Integration of the properties into CN is expected to take less than six months. For a map of the new CN lines, visit the company's website at www.cn.ca/pdf/NewAlbertaCNlines.pdf This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk and uncertainties and that its results could differ materially from those expressed or implied in such statements. Reference should be made to CN's most recent Form 40-F filed with the United States Securities and Exchange Commission, its Annual Information Form filed with the Canadian securities regulators, and its 2004 Annual and 2005 Quarterly Financial Statements and Management's Discussion and Analysis Management's discussion and analysis (MD&A) A report from management to shareholders that accompanies the firm's financial statements in the annual report. It explains the period's financial results and enables management to discuss topics that may not be apparent in the financial , for a summary of major risks. 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, and Jackson, Miss., with connections to all points in North America. www.cn.ca CN (TSX:CNR) (NYSE NYSE See: New York Stock Exchange :CNI) |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion