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CN AND GRAND TRUNK CREATE NEW NORTH AMERICAN FREIGHT SERVICE

 CN AND GRAND TRUNK CREATE NEW NORTH AMERICAN FREIGHT SERVICE
 DETROIT, Dec. 4 /PRNewswire/ -- Canadian National Railways and its three U.S. railroads are integrating their marketing and operations functions to create a new, international freight service for customers.
 The combined system -- in direct response to the need for more competitive, streamlined transportation and distribution services -- will span the Canada-U.S. border and be known as CN North America.
 CN President and CEO Ron Lawless said: "The restructuring -- coupled with recent marketing agreements and joint projects with six of the top U.S. railways -- will help CN grow its transborder freight business from the current 400,000 carloads a year."
 "About a quarter of our revenue now comes from Canada-U.S. trade in such goods and commodities as forest products, intermodal and automotive traffic, petroleum and chemicals, and ores, minerals and metals," said Lawless. "This new approach to serving the marketplace will help us become more efficient, and more competitive. We think there are more opportunities available to us today than ever before."
 CN's three U.S. railroads -- the Grand Trunk Western; Duluth, Winnipeg and Pacific; and the Central Vermont -- have been part of the Grand Trunk Corporation, a stand-alone holding company since GTC's creation as a separate CN profit center in 1971.
 "GTC's strategic value to CN has become even more significant, in particular the rail link to Chicago, which is the center of U.S. railway connections," said Lawless. "We are working in an increasingly competitive business environment, which is characterized by extensive consolidation in the rail and trucking industries."
 The integration will increase reliability and reduce transit time of freight traffic, allow faster response to market needs, improve the availability of equipment, offer more competitive pricing and standardize such support systems as billing and customer-related information.
 CN North America will maintain marketing and sales offices in major U.S. and Canadian cities, all linked electronically to central pricing, contracting and operations offices. They, in turn, are linked to CN marketing offices and agencies in the Far East, Europe and Australia.
 Both CN and the GTC railroads have been actively working to reduce their overhead and operating costs, to improve existing transportation and distribution activities, and to offer new, customer-oriented services. "However, there are further economies of scale available from full integration of the marketing and operations functions," said Lawless.
 The changes in reporting relationships in the marketing reorganization, along business unit lines, are effective immediately, reporting to John Guppy, senior vice president, marketing for CN North America. Full marketing integration will be completed by March.
 For example, intermodal terminal managers in Detroit and Chicago will report to intermodal services in the Greater Toronto area as their Canadian counterparts now do -- a reflection of the international nature of container and trailer freight shipments by ship, truck and rail.
 A new automotive business unit, with key staff based in Detroit and Greater Toronto, will reflect the auto industry's international reach, help CN better anticipate auto companies' needs and provide the quality service they require to compete in a global market.
 "The operations integration will be phased in too. Within day-to- day operating functions," said Lawless, "our objective is to increase effectiveness and reduce redundancies through such initiatives as joint purchasing and inventory management, a single computerized yard and rail line operating system and coordinated equipment maintenance procedures."
 As part of the new, streamlined organization, Robert A. Walker has been appointed vice president, corporate for CN North America, in Detroit, reporting to Lawless. David L. Wilson has been named vice president, U.S. operations, reporting to John Kelsall, CN's senior vice president, operations.
 -0- 12/4/91
 /CONTACT: Roger Cameron, 514-399-6630, or Gary Jones, 313-396-6586, both of CN North America/ CO: CN North America; Grand Trunk Corporation ST: Michigan, Ontario IN: TRN SU: PDT


JG-KK -- DE009 -- 9093 12/04/91 10:14 EST
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Publication:PR Newswire
Date:Dec 4, 1991
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