Canadian National subsidiary acquires intermodal assets

A Canadian National (NYSE: CNI) subsidiary has acquired the intermodal assets of Alberta-based H&R Transport, a company that specializes in the over-the-road, temperature-controlled service.

The acquisition will expand CNI’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 CNI 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 CNI’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 CNI’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 CNI’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.

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Joanna Marsh

Joanna is a Washington, DC-based writer covering the freight railroad industry. She has worked for Argus Media as a contributing reporter for Argus Rail Business and as a market reporter for Argus Coal Daily. Her transportation background extends to writing about automotive fuels and additives for Hart Energy Publishing and producing summaries on advanced transportation research for a federal government agency. In her spare time, she likes writing travel articles, taking photographs, and singing and dancing. She has a bachelor's degree in music and political science from Barnard College, a master's in journalism from Boston University, and a master's in musical theater from Boston Conservatory.

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