The acquisition will expand CN’s presence in moving consumer goods, and is part of the company’s broader effort to offer more end-to-end rail supply chain options, according to railroad president and chief executive officer J.J. Ruest.
Terms of the transaction were not disclosed but CN and H&R Transport have had a longstanding relationship, Canadian National said.
Canadian National, through a subsidiary, will acquire H&R Transport’s intermodal assets, including the containers, chassis and systems. “With the goal of increasing rail volumes, this transaction will drive customer and shareholder value by adding to CN’s rail pipeline of revenue opportunities and by converting long-haul trucking to intermodal,” the company said.
According to H&R Transport’s website, the company has 550 highway reefer trailers and intermodal containers and 230 trucks. H&R Transport was founded in 1955, and the company has grown to provide over-the-road, refrigerated service to the food and beverage industry across Canada, the U.S. and Mexico.
Adding H&R Transport to CN’s portfolio follows other recent efforts by the company to look beyond rail and focus on the overall supply chain. The company finalized its acquisition of trucking and transportation services provider TransX in March, and it said in April that it would work with electric truck manufacturer Lion Electric to produce eight electric trucks, which would be deployed in cities across CN’s network in Canada.
The railroad also already operates a CargoCool service for refrigerated goods, which has access to 23 intermodal terminals in North America and rail connections to three coasts and six major ports.