CN Drives North American Economic Growth, Purchasing 1,000 New Generation, High-Capacity Hopper Cars to Enable Record Grain Shipments
On May 7, 2021, CN announced an order for 1,000 new high-capacity grain hopper cars, manufactured by TrinityRail in Mexico. This investment aims to enhance the efficiency and reliability of grain transportation across North America, meeting growing demands from grain farmers and customers. The initiative is part of a broader plan to renew a fleet of 6,000 hopper cars over three years. CN emphasizes its commitment to support grain movement, particularly during the pandemic, achieving record Canadian grain shipment volumes for 14 consecutive months.
- Order for 1,000 high-capacity hopper railcars enhances grain transportation efficiency.
- CN's grain movement has seen record volumes, achieving 14 consecutive months of record shipments.
- The investment supports CN's vision to connect North America's economies and improve customer service.
- Strengthens CN's position as a leader in the grain industry.
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The new railcars will be built by TrinityRail at a facility in Mexico
The new generation high-capacity hopper railcars will expand capacity, providing greater efficiency, reliability and safety for North American grain farmers, their customers, and the supply chain
MONTREAL, May 07, 2021 (GLOBE NEWSWIRE) -- As it moves ahead towards its vision of becoming the first truly North American railway, CN (TSX: CNR) (NYSE: CNI) today announced it has placed an order for 1,000 new generation, high-capacity grain hopper cars. These innovative new railcars, to be built in a TrinityRail manufacturing plant in Mexico, will help meet the growing needs of North American grain farmers and demands of grain customers.
CN leads the industry in moving grain, and the TrinityRail order is part of a larger program to build and renew a fleet of 6,000 hopper railcars over the next three years. CN recently made a formal offer to acquire Kansas City Southern, a fellow Class I railway. The combination would extend the span of CN’s network from Canada and the U.S. into Mexico, making it the first railroad to link North America’s three national economies.
“These cars will be manufactured in Mexico and will help move more grain across the CN rail network, which continues to make CN the embodiment of a true USMCA railroad. Being an engine of North American economic growth and prosperity means that CN focuses continually on making strategic investments. Adding these 1,000 new generation hopper cars to our fleet is a prime example of that. In addition to our superior proposal to combine with KCS, this is a step further in our vision of seamlessly connecting ports and rails in the United States, Mexico and Canada and of providing superior service, enhanced competition and new market access to move goods across North America efficiently and safely.”
– JJ Ruest, President and Chief Executive Officer, CN
“CN’s grain movement has been resilient during the pandemic, achieving 14 straight months of record Canadian grain volume shipments. The dedication of our railroaders as well as our agri-food and supply chain partners has been key to this exceptional performance. By purchasing additional hopper cars, we are strengthening our commitment to grain farmers, grain customers, and the overall supply chain to support and expand our movement of grain to international markets as demand continues to increase.”
– Rob Reilly, Executive Vice-President and Chief Operating Officer, CN
“The purchase of 1,000 new high-capacity hopper cars by CN is good news for Canadian grain farmers, grain customers, and the Canadian economy. A safe and reliable freight rail system is a critical part of a healthy Canadian economy that supports good middle class jobs.”
– The Honourable Omar Alghabra, Minister of Transport, Government of Canada.
“As grain farmers know well, we need a reliable transportation system to get our high-quality products to market in a timely manner. Today’s great announcement by CN of 1,000 new high-capacity hopper cars builds on their success of month-over-month records for grain movement amid record high grain prices. The Transportation Modernization Act our Government passed in 2017 also helped incentivize these kinds of investments. All of it points clearly to an even brighter future on the horizon for Canadian grain farmers and the entire grain value-chain.”
– The Honourable Marie-Claude Bibeau, Minister of Agriculture and Agri-Food, Government of Canada
“The employees of Trinity de Mexico are honored to receive this valuable order from Canadian National. Trinity is a pioneer in the manufacturing of railcars in Mexico which has greatly contributed to the development of the Sabinas region, the state of Coahuila, the entire country of Mexico, and the North American freight railcar market.”
– Luis Pardo, Executive Vice President, Trinity de Mexico
“On behalf of Canada’s grain farmers, we are encouraged by any investment that helps get our grain to markets across the world. As our production increases, we see this as a positive sign that our rail capacity is poised to keep up with growing demand here and abroad.”
– Andre Harpe, Chairman, Grain Growers of Canada
CN's continued ability to deliver record volumes of grain shipments is largely due to investments made by the company over the past few years to improve safety and network fluidity. The purchase of these lighter, shorter, high capacity rail cars will enable CN to move more grain, with less equipment, supporting the company’s focus on better serving customers by providing safe, efficient, low carbon freight transportation services. CN is the most fuel-efficient railway in North America, using
To find out more about CN’s commitment to grain please visit www.cn.ca/grain.
For more information about CN’s superior proposal to combine with KCS, please visit www.ConnectedContinent.com.
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.
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, including statements based on management’s assessment and assumptions and publicly available information with respect to KCS, regarding the proposed transaction between CN and KCS, the expected benefits of the proposed transaction and future opportunities for the combined company. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN 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.
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Additional Information and Where to Find It
This news release relates to a proposal which CN has made for an acquisition of KCS. In furtherance of this proposal and subject to future developments, CN (and, if a negotiated transaction is agreed, KCS) may file one or more registration statements, proxy statements, tender offer statements or other documents with the U.S. Securities and Exchange Commission (“SEC”) or applicable securities regulators in Canada. This news release is not a substitute for any proxy statement, registration statement, tender offer statement, prospectus or other document CN and/or KCS may file with the SEC or applicable securities regulators in Canada in connection with the proposed transactions.
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Participants
This news release is neither a solicitation of a proxy nor a substitute for any proxy statement or other filings that may be made with the SEC and applicable securities regulators in Canada. Nonetheless, CN and its directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transactions. Information about CN’s executive officers and directors is available in its 2021 Management Information Circular, dated March 9, 2021, as well as its 2020 Annual Report on Form 40-F filed with the SEC on February 1, 2021, in each case available on its website at www.CN.ca/investors/ and at www.sec.gov and www.sedar.com. Additional information regarding the interests of such potential participants will be included in one or more registration statements, proxy statements, tender offer statements or other documents filed with the SEC and applicable securities regulators in Canada if and when they become available. These documents (if and when available) may be obtained free of charge from the SEC’s website at www.sec.gov and www.sedar.com, as applicable.
| Contacts: | |
| Media Canada Mathieu Gaudreault CN Media Relations & Public Affairs (514) 249-4735 Mathieu.Gaudreault@cn.ca Longview Communications & Public Affairs Martin Cej (403) 512-5730 mcej@longviewcomms.ca United States Brunswick Group Jonathan Doorley / Rebecca Kral (917) 459-0419 / (917) 818-9002 jdoorley@brunswickgroup.com rkral@brunswickgroup.com | Investment Community Paul Butcher Vice-President Investor Relations (514) 399-0052 investor.relations@cn.ca |
FAQ
What is the significance of CN's recent order for new railcars on May 7, 2021?
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