CN Submits Notice of Intent to File Responsive Application with the Surface Transportation Board
January 13 2022 - 7:00AM
CN (TSX: CNR, NYSE: CNI) yesterday evening submitted a notice of
intent to file a responsive application on February 28, 2022, with
the Surface Transportation Board (“STB”) in accordance with the
STB’s procedural schedule for review of the pending Canadian
Pacific (“CP”) and Kansas City Southern (“KCS”) merger
(collectively “CP-KCS”).
CN’s responsive application will ask the STB to
condition any approval of a CP-KCS merger on the divestiture of KCS
lines from Kansas City, Missouri to Springfield and East St. Louis,
Illinois (the “Springfield Line”) to CN, pursuant to the STB’s
statutory authority to order “the divestiture of parallel tracks”
as a merger condition.
The Springfield Line is a direct competitive
alternative to CP’s route from Kansas City to Chicago, and beyond
to Detroit and eastern Canada. CP and KCS have made it clear in
their merger application that they plan no investment on the
Springfield Line, and instead will de-emphasize it in favor of CP’s
existing parallel line.
Putting the Springfield Line under CN’s control
represents a major opportunity to improve transportation options,
promote rail-to-rail competition, and take many of thousands of
long-haul trucks off the road annually through increased
rail-to-truck competition. CN’s plan for the line will benefit all
stakeholders and will advance CN’s continual efforts to ensure
competition and choice in our industry, while also creating new
jobs and economic opportunities in the region.
Specifically, with the Springfield Line, CN
will:
- Make investments of at least US$250
million in the Kansas City, Missouri to Springfield and East St.
Louis, Illinois line, including terminal upgrades;
- Take many thousands of trucks off
the road, reducing congestion and emissions;
- Promote competitive options for
customers, including automotive and intermodal traffic, which will
lead to increased economic prosperity for the Midwest in line with
the goals of President Biden’s executive order on competition;
- Open new international markets to
customers, including safely and reliably linking Illinois, Indiana
and Michigan manufacturers and farmers to the world; and,
- Preserve all existing competitive
options by providing KCS access to customers on the line.
Under CN’s proposal, CN would make necessary
capital investments to improve operating speed and terminals, yield
environmental benefits, and provide additional pro-competitive
options and access for auto and intermodal customers.
About CNCN is a world-class
transportation leader and trade-enabler. Essential to the economy,
to the customers, and to the communities it serves, CN safely
transports more than 300 million tons of natural resources,
manufactured products, and finished goods throughout North America
every year. As the only railroad connecting Canada’s Eastern and
Western coasts with the U.S. South through a 19,500-mile rail
network, CN and its affiliates have been contributing to community
prosperity and sustainable trade since 1919. CN is committed to
programs supporting social responsibility and environmental
stewardship.
Forward-Looking
StatementsCertain statements included in this news release
constitute “forward-looking statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
under Canadian securities laws. By their nature, forward-looking
statements involve risks, uncertainties and assumptions. The
Company cautions that its assumptions may not materialize and that
current economic conditions render such assumptions, although
reasonable at the time they were made, subject to greater
uncertainty. Forward-looking statements may be identified by the
use of terminology such as “believes,” “expects,” “anticipates,”
“assumes,” “outlook,” “plans,” “targets,” or other similar
words.
Forward-looking statements are not guarantees of
future performance and involve risks, uncertainties and other
factors which may cause the actual results or performance of the
Company to be materially different from the outlook or any future
results or performance implied by such statements. Reference should
be made to Management’s Discussion and Analysis in CN’s annual and
interim reports, Annual Information Form and Form 40-F, filed with
Canadian and U.S. securities regulators and available on CN’s
website, for a description of major risk factors.
Contacts:Media Canada Jonathan AbecassisCN Media
Relations & Public Affairs (438)
455-3692Jonathan.Abecassis@cn.ca Longview
Communications & Public Affairs Martin Cej (403)
512-5730mcej@longviewcomms.caUnited States Brunswick Group Michael
France / Andrew Spinelli (917) 676-5802 / (312) 468-5802
mfrance@brunswickgroup.comaspinelli@brunswickgroup.com |
Investment Community Paul Butcher Vice-President Investor Relations
(514) 399-0052 investor.relations@cn.ca |
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