MONTREAL,
Feb. 12, 2013 /CNW Telbec/ - CN (TSX:
CNR) (NYSE: CNI) announced today that it is suspending the
feasibility study for the construction of its proposed rail line
and terminal handling facility to serve the Quebec/Labrador iron ore range.
The feasibility study was initiated last August by CN and its
partner La Caisse de dépôt et placement du Québec (the "Caisse"),
along with a group of six mining companies. The study has
been progressing steadily over the past several months.
However, the current market realities have resulted in anticipated
delays with mine development projects in and around the Labrador
Trough. A joint review of the project together with the
mining companies indicates that mine construction schedules and
diverging needs for each specific individual project will make it
difficult to obtain the critical volumes of iron ore necessary to
support the building of new rail and terminal infrastructure by
CN.
The decision by some miners in the region not to join the group
of mining companies supporting the CN infrastructure project is
also a factor in the much-lower-than-projected iron ore volumes
that are now expected to be shipped in the foreseeable future.
Luc Jobin, executive
vice-president and chief financial officer of CN, said: "We have
invested considerable effort and resources towards the feasibility
study, but in light of the circumstances, CN has concluded that it
is not advisable to continue with the feasibility study at this
time."
Michael Sabia, President and
Chief Executive Officer of the Caisse, added that "we understand
that conditions in the global economy prevent undertaking the
project at this time. As a long term investor, the Caisse remains
open to participating in infrastructure projects that will
facilitate the development of Northern Québec, always in
partnership with an experienced partner that can minimize the
operational risks. The Caisse is convinced that the long-term
structural trends in the global economy will be favorable to the
development of Québec's natural resources sector."
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, St.
Louis, 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.
Forward-Looking Statements
Certain information included in this news release constitutes
"forward-looking statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and under Canadian securities laws.
CN cautions that, by their nature, these forward-looking statements
involve risks, uncertainties and assumptions. 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. Such
forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other
factors which may cause the actual results or performance of the
Company or the rail industry to be materially different from the
outlook or any future results or performance implied by such
statements. Important factors that could affect the above
forward-looking statements include, but are not limited to, the
effects of general economic and business conditions, 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, various events which could disrupt operations,
including natural events such as severe weather, droughts, floods
and earthquakes, labor negotiations and disruptions, environmental
claims, uncertainties of investigations, proceedings or other types
of claims and litigation, risks and liabilities arising from
derailments, and other risks and assumptions 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, 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 assumes no obligation to update or revise
forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable
Canadian securities laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will
make additional updates with respect to that statement, related
matters, or any other forward-looking statement.
SOURCE CN