CN to preserve shipper rights as condition for acquisition
Canadian National said it has reached agreement with Canada’s Competition Bureau to move forward with its $1 billion acquisition of BC Rail.
The railroad promised to share savings generated by the merger with BC Rail shippers and assure them competitive transportation options. The transaction is expected to close by mid-July.
Under the consent decree, shippers can choose to route traffic over BC Rail to connecting railways at the Vancouver gateway at lower rates and with better service than exists today on BC Rail. The agreement also preserves competitive rates and service for grain shippers in the Peace River region.
In other company news, CN said it was creating a new service department to resolve customer issues that aren’t corrected by the sales staff during the normal course of business.