CN OFFERS $30 MILLION INVESTMENT FOR PROPOSED ACQUISITION
Canadian National said it is prepared to invest more than $30 million in ONRail's assets and employees, following its proposed acquisition of the Northeast Ontario railroad.
CN's investment would cover right-of-way and highway crossing improvements, shop equipment, passenger train equipment, tools, systems and employee training.
The investments would be subject to ONRail unions agreeing to come under CN's existing collective agreements and CN signing a definitive purchase agreement with the Ontario government. CN aims to complete negotiations by year end and close the transaction during the first quarter of 2003.
Keith Heller, CN's senior vice president, Eastern Canada division, said CN would offer ONRail shippers more frequent, reliable service and greater reach into important consuming markets.
CN would increase freight service from five to seven days per week, provide 90 percent on-time service, offer scheduled transit times and establish a guaranteed car supply program for shippers, Heller told attendees at the Northeastern Ontario Municipalities Action Group.
The railroad would also maintain or enhance rail competition in Northeastern Ontario by assuring competitive rail options for shippers and introducing federal Canada Transportation Act shipper projections.