CN unveils new intermodal hub plan, announces another ratified contract

CN yesterday unveiled a plan to build a $250 million (in Canadian dollars) intermodal and logistics hub next to its mainline in the town of Milton, Ontario.

The Milton area has ready access to major highways that reach key industrial and commercial centers in greater Toronto and Hamilton, CN officials said in a press release.

"The new hub will benefit our customers and the regional economy by improving central Canada's access to the key transborder market as well as the Pacific and Atlantic coast trade gateways we serve, generating new supply chain efficiencies in the GTHA, and creating well-paying local jobs," said CN President and Chief Executive Officer Claude Mongeau.

The Milton facility will complement the Brampton Intermodal Terminal, CN's existing intermodal terminal in Brampton, Ontario, near Toronto.

CN's intermodal business — principally containerized international and domestic cargo moving in cooperation with trucks and ocean-going ships — is one of the railroad's fastest growing business segments. In 2014, the business unit posted revenue of more than $2.7 billion.

Also yesterday, CN announced that members of the Unifor shop craft group representing 2,100 CN car mechanics, heavy-duty equipment mechanics and electricians in Canada have ratified a four-year contract.

The shop craft group's ratification follows earlier ratification of 51-month term contracts by Unifor's clerical/intermodal, Savage Alberta Railway, excavator-operator and CNTL owner-operator members at CN.