CN to expand cold supply chain capacity

CN yesterday announced it will spend $20 million (in Canadian dollars) to expand its supply chain capacity to help producers and distributors of chilled or frozen foods increase business in North American and overseas markets.

CN will acquire 200 domestic, 53-foot temperature controlled containers, which will add to the current fleet circulating in North America. Also, CN will acquire 32 electrical generators to move 40-foot international marine refrigerator rail cars, or "reefers," to and from CN-served ports on CN intermodal trains. The power packs provide economies of scale by connecting up to 17 international marine reefers at a time, CN officials said in a press release.

CN was the first railway to introduce highway-to-rail conversion of reefer service in transborder markets, said JJ Ruest, executive vice president and chief marketing officer.

"CN's cold supply chain service offers the food industry a quality and cost-effective alternative to highway trucks and gives producers pursuing overseas opportunity a great tool to expand market share," he said. "CN is growing with its customers, aiming to help them compete more effectively in their own markets."

In collaboration with other railroads, CN offers cold supply chain rail service between Canada, the United States and Mexico, as well as between Canada and overseas markets.