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Yesterday, Canadian National Railway Co. announced it will spend $100 million to rebuild and upgrade Johnston Yard in Memphis, Tenn. — a key operating center in the Class I’s North American network that was built in the early 1900s.

As part of the project that began in February, CN will reconfigure the yard’s freight-car switching facility, including the construction of a small hump designed to direct cars to sorting tracks via gravity. The railroad also will build tracks, switches and support buildings; construct a yard tower, car shop and locomotive servicing facility; and install equipment.

After the project is completed in late 2008, the yard will feature 45 classification yard tracks, three 10,000-foot departure tracks and eight 5,000-foot receiving tracks. The facility will be able to handle more than 35 trains per day and more than 3,100 cars.

“The yard has experienced steadily increasing traffic volumes since CN's acquisition of Illinois Central in 1999 and the recent implementation of CN’s routing protocols with the other major railroads in Memphis,” said CN President and Chief Executive Officer E. Hunter Harrison in a prepared statement.