EduBourseActualitésGO Transit acquires important CN rail line for expanded commuter rail service...

GO Transit acquires important CN rail line for expanded commuter rail service in the Greater Toronto Area

TORONTO, April 8, 2009 — GO Transit and CN (TSX: CNR)(NYSE: CNI) announced today that the Toronto area commuter rail agency will acquire CN’s Weston Subdivision for expanded GO service between Union Station and regions northwest of the city.

This strategically important rail line runs from a point near Strachan Avenue and Wellington Street West in downtown Toronto, northwest through the city to CN’s main east-west freight line near the intersection of Steeles Avenue and Bramalea Road. The purchase is valued at C$160 million.

GO currently runs its Georgetown commuter rail service over the line, which also accommodates VIA Rail trains running between Toronto, Kitchener, and other points in southwestern Ontario. In total, the two passenger carriers operate 46 trains per day over the line, while CN operates three daily local freight trains along this corridor.

Under its agreement with GO Transit, CN will continue to serve its freight customers on the Weston Subdivision. VIA will also continue to operate trains on the line.

By owning the Georgetown rail corridor, GO is better positioned to add more service, build new infrastructure, and expand its operations along that line. This acquisition aligns with GO Transit’s Strategic Plan, GO 2020.

“This is a major step forward for future growth and expansion along this already busy corridor,” said GO Transit Chairman Peter Smith. “This purchase sets the framework for future GO rail corridor purchases, and we look forward to continuing our strong, long-standing partnership with CN.”

Claude Mongeau, CN executive vice-president and chief financial officer, said: “CN is pleased to have reached this line-sale agreement with GO Transit. GO is a valuable CN customer – the vast majority of its services in the Greater Toronto Area operate over CN’s rail network – and we believe this transaction and our continuing partnership with GO will help to advance commuter rail and its clear environmental benefits to the Toronto region. At the same time, our line sale – reflecting CN’s tight focus on asset management – will also generate value for the company.”

Forward-Looking Statements
This news release contains forward-looking statements. CN cautions that, by their nature, forward-looking statements involve risk, uncertainties and assumptions. Implicit in these statements, particularly in respect of long-term growth opportunities, is the Company’s assumption that such growth opportunities are less affected by the current situation in the North American and global economies. 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. The current situation in financial markets is adding a substantial amount of risk to the North American economy, which is already in a recession, and to the global economy, which is significantly slowing down. The Company cautions that its results could differ materially from those expressed or implied in such forward-looking statements. Important factors that could cause such differences include, but are not limited to, industry competition, legislative and/or regulatory developments, compliance with environmental laws and regulations, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, the effects of adverse general economic and business conditions, inflation, currency fluctuations, changes in fuel prices, labour disruptions, environmental claims, investigations or proceedings, other types of claims and litigation, 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 and Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN’s website, for a summary of major risks.

CN – Canadian National Railway Company and its operating railway subsidiaries – spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with connections to all points in North America. For more information on CN, visit the company’s website at www.cn.ca

GO Transit is the Province of Ontario’s interregional public transit system linking Toronto with the surrounding regions of the Greater Toronto Area (GTA). GO carries nearly 55 million passengers a 2022 in an extensive network of train and bus services that spans over 8,000 square kilometres.
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Contacts for CN:
Media Investors
Mark Hallman Robert Noorigian
(905) 669-3384 (514) 399-0052

Investors
Robert Noorigian
(514) 399-0052

Contacts for GO Transit:
Media
Vanessa Thomas
(416) 869-3600, ext. 5264, or

Jessica Kosmack
(416) 869-3600, ext. 5231

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Pierre Perrin-Monlouis
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