CN and Watco Announce Surface Transportation Board Approval of the Sale of Rail Lines in Wisconsin and Michigan
CN announced on December 21, 2021, that the U.S. Surface Transportation Board has approved the sale of approximately 650 miles of branch lines, including the Soo subdivision. This sale is a continuation of plans initiated in July 2020, which aims to streamline operations and optimize asset utilization. Following the sale, CN will maintain a significant connection in Wisconsin and Michigan, ensuring reliable service. The collaboration with Watco is set to enhance customer transition and operational efficiency.
- U.S. Surface Transportation Board approved sale of non-core lines, indicating regulatory support.
- Sale includes important assets, potentially improving operational efficiency.
- Continued connectivity in Wisconsin and Michigan enhances service reliability.
- None.
MONTREAL, Dec. 21, 2021 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) and Watco are pleased to announce that the United States Surface Transportation Board (STB) has approved the sale of non-core lines and assets on approximately 650 miles of branch lines of Wisconsin Central Ltd. in Wisconsin and Michigan. This marks an important step toward the successful conclusion of the sale process that CN announced and launched in July of 2020, which also includes the sale of the Soo subdivision (approximately 250 miles of track) that runs from Sault Ste. Marie, Ontario to Oba, Ontario.
CN and Watco will work together in the coming weeks to implement a seamless transition for customers on the lines.
After closing, CN will continue to play a central role in Wisconsin and Michigan, as the transferred segments will remain connected to CN’s tri-coastal network, safely and reliably linking businesses to markets around the world. CN is committed to building the railway of the future -- a railroad that creates value for its shareholders by truly serving the needs of its customers.
About CN
CN 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.
About Watco
Watco is a leading service and logistics company providing transportation, mechanical repairs and maintenance, material handling and warehousing, and logistics solutions for customers throughout North America and Australia. Watco is one of the largest short line railroad holding companies in the U.S. with more than 5,000 miles of track. Through its 40-year history, Watco has grown to be a leader in the railroad industry through exceptional customer service, improved safety and a strong commitment to its’ public and private partners. Watco controlled railroads currently operate over 600 miles of track within the state of Wisconsin. For more information on Watco, visit watco.com.
CN Forward-Looking Statements
Certain 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:
| CN Media | |
| Media | CN Investment Community |
| Jonathan Abecassis Senior Manager Media Relations 438-455-3692 media@cn.ca | Paul Butcher Vice-President Investor Relations (514) 399-0052 investor.relations@cn.ca |
Watco Media
Tracie VanBecelaere
Communications Director
Watco
(620) 704-1288
media@watco.com
FAQ
What was approved by the U.S. Surface Transportation Board regarding CN (CNI) on December 21, 2021?
What impact does the sale of non-core lines have on CN's operations?
Who is CN collaborating with for the transition of the sold assets?
