MIRAMICHI, NB,
Jan. 24, 2014 /CNW Telbec/ - The
Province of New Brunswick and CN
(TSX: CNR) (NYSE: CNI) have reached an agreement to preserve rail
freight service on the line in northern New Brunswick.
"Freight rail is a critical mode of transportation for
industries in northern New
Brunswick, and it is a vital lifeline for the jobs and
communities that rely on these industries," said Premier
David Alward. "Our investment
in the rehabilitation of two sections of railway line ensures
companies in northern New
Brunswick can continue to ship their goods to market
efficiently and explore new opportunities for growth."
Premier Alward joined Sean Finn, CN executive vice-president,
corporate services, and chief legal officer, other government
officials and stakeholders for the announcement in Miramichi today.
Under the agreement, the Province of New Brunswick will invest up to $25 million in rail infrastructure improvements
to the Newcastle subdivision. CN will in turn spend a comparable
amount to maintain and operate the line, ensuring continued rail
freight service for a 15-year period on the northern and southern
sections of the rail line: between Irvco, N.B., and Nepisquit
Junction, N.B., in the north and between Catamount, N.B., and
Nelson Junction in the south, where there are active rail freight
customers.
The province's investment will be used to rehabilitate and
upgrade the rail line to the operating standards required to
efficiently and cost-effectively handle current and projected
traffic. The work will commence in the spring of 2014.
CN, the province and local businesses will continue to work
together to increase freight traffic in future years, with benefits
to be shared between the two partners.
Finn said: "We thank the provincial government for working with
us over the last year to develop this agreement that will preserve
rail freight service in northern New
Brunswick. This agreement would not have been possible
without the commitment of both parties to continuing investments
and to the growth of rail freight traffic in the region."
CN will seek to discontinue rail operations on the 44-mile
middle section of the Newcastle subdivision, between Nelson
Junction (mile 62) and Nepisquit Junction (mile 106), due to
the significant investments required to maintain the line and the
lack of both originating and terminating freight traffic on that
section.
Before this part of the line can be discontinued, however, it
will be offered for sale in early February to private interests and
then to municipal, provincial and federal levels of government, as
per the provisions of the Canada Transportation Act. They will have
a five-month window to submit offers to purchase the middle
section, should there be a desire to maintain rail service on the
segment.
CN is a true backbone of the economy,
transporting approximately C$250
billion worth of goods annually for a wide range of business
sectors, ranging from resource products to manufactured products to
consumer goods, across a rail network spanning Canada and mid-America. CN - Canadian National
Railway Company, along with its operating railway subsidiaries --
serves the cities and ports of Vancouver, Prince
Rupert, B.C., Montreal,
Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of
Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth,
Minn./Superior, Wis., 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.
SOURCE CN