Railroad News

CN today announced it reached an agreement to acquire The TransX Group of Cos., one of Canada’s largest and oldest transportation companies.

TransX provides various transportation and logistics services, including intermodal, truckload, less than truckload and specialized services. The 55-year-old company will continue to be based in Winnipeg, Manitoba, and operate independently, CN officials said in a press release.

CN reported yesterday its third-quarter net income rose 18.4 percent to CA$1.1 million from CA$958 million in the same period a year ago.

Diluted earnings per share (EPS) in the quarter increased 21 percent to CA$1.54 over the Q3 2017 total. Adjusted net income climbed 11 percent to CA$1.1 million, while adjusted diluted EPS climbed 15 percent to CA$1.50, CN officials said in a press release.

CN has begun to roll out the first of its new centerbeam rail cars ordered earlier this year from National Steel Car Ltd.

CN received the first of 350 new centerbeams in August. The new builds are 73-foot riserless centerbeams with a maximum load capacity of 286,000 pounds, CN officials said in a website post.

CN has become the first transportation company in Canada to receive the Progressive Aboriginal Relations (PAR) Bronze Level certification from the Canadian Council for Aboriginal Business (CCAB).

Established in 2001, the certification signals to Aboriginal communities that designated companies are "good business partners, great places to work and committed to the prosperity of Aboriginal communities," according to a CN press release.

CN has been placed on the Dow Jones Sustainability World Index (DJSI) for the seventh consecutive year and the North American index for the 10th consecutive year, the Class I announced yesterday.

The DJSI World Index recognizes the top 10 percent of the 2,500 largest companies in the S&P Global Broad Market Index from each sector based on their sustainability scores.

CN will purchase another 60 GE Transportation locomotives, expanding the Class I's 200-unit order placed in December 2017, the Class I and GE announced today.

All the CN locomotives will be produced at GE's plant in Fort Worth, Texas. The new purchase includes a multiyear service agreement.

CN President and Chief Executive Officer JJ Ruest today announced he has appointed railroaders experienced in precision-scheduled railroading to serve in senior management positions.

Doug MacDonald and Keith Reardon will head CN's sales and marketing initiatives and all non-rail supply chain operations, such as intermodal container terminals and transload facilities.

CN has posted on its website a plan for servicing the 2018-19 grain crop.

The report is what the Class I is calling a first annual public Grain Plan, developed after "extensive consultation with key stakeholders," according to the website.

CN yesterday raised its financial outlook for the second half of the year after reporting  strong second-quarter results.

Net income for the quarter rose 27 percent to CA$1.31 billion, or CA$1.77 per share, from CA$1.03 billion, or CA$1.36 per share, a year ago. Adjusted diluted earnings per share were CA$1.51, up from CA$1.34 last year.

Jean-Jacques Ruest has been appointed president and chief executive officer of CN, the Class I announced today.

Ruest, who has been serving as interim president and CEO since March, also has been appointed to CN's board.

CN will spend CA$315 million on projects to expand and strengthen its network across Ontario this year, the Class I announced yesterday.

Planned expansion projects will include investments in a satellite intermodal facility near the railroad's Brampton Intermodal Terminal to provide temporary capacity; intermodal equipment and infrastructure at CN's Brampton Intermodal Terminal to serve growing cold supply chain business; and construction of a new train passing siding east of Sioux Lookout.

CN officials announced last week the railroad will spend CA$40 million this year on infrastructure in New Brunswick and Nova Scotia.

In New Brunswick, the Class I will spend CA$30 million to install 20 miles of rail and more than 50,000 ties, as well as rebuild road crossing surfaces and perform maintenance on bridges, culverts, signal systems and other track infrastructure.

CN will spend CA$210 million of its 2018 capital program to improve and expand its network in Saskatchewan.

The Class I's projects will include more than 20 miles of new double track in three locations across the province. Other capital program investments will focus on the replacement, upgrade and maintenance of key track infrastructure to improve overall safety and efficiency, CN officials said in a press release.

CN this year will spend CA$320 million to strengthen and expand its infrastructure in Alberta and CA$210 million in Quebec, the Class I announced this week.

The investments are part of CN's CA$3.4 billion capital expenditures program for 2018, CN officials said in press releases.

CN plans to spend about CA$130 million this year to bolster infrastructure in Manitoba, including an expansion of Symington Yard in Winnipeg.

The yard project calls for building or extending a dozen tracks to help improve the efficiency of handling rail cars from Canada and the United States, CN officials said in a press release.

CN will spend CA$340 million this year to expand and strengthen its rail network through British Columbia, the Class I announced yesterday.

The investment is part of CN's CA$3.4 billion capital program for 2018. Key projects include track expansion to boost capacity and the replacement, upgrade and maintenance of key track infrastructure.