CN eyes post-acquisition investments in Ontario Northland (11/25/2002)
11/22/2024If Canadian National Railway Co. acquires Ontario Northland Railway, the Class I plans to invest more than $30 million to train employees and improve right of ways and crossings, shop and passenger-train equipment, tools, and systems.
The investments would be subject to union members agreeing to come under CN's existing collective agreements, and the signing of a definitive purchase agreement between the Class I and Ontario's government.
CN expects to complete all negotiations by year's end and close the transaction in first-quarter 2003, said Keith Heller, CN senior vice president, Eastern Canada division, in a speech Nov. 22 before the Northeastern Ontario Municipalities Action Group in Timmins, Ontario, according to a prepared statement.
After acquiring Ontario Northland, CN would increase weekly freight service from five to seven days, provide 90 percent on-time service, offer scheduled transit times and establish a guaranteed car supply program for shippers.
For passenger-rail services, the Class I would install a new reservation system, and renovate and add passenger cars.
Source: Progressive Railroading Daily News