CN Shatters Grain Record by Delivering Biggest Month Ever

Rhea-AI Summary

CN (CNI) has surpassed its previous record by moving over 2.88 million metric tons of Canadian grain in October 2020, with predictions to exceed the 3 million metric ton milestone. This record follows seven consecutive months of increased grain movement. Additionally, CN is set to receive 1,500 new high-capacity grain hopper cars, enhancing their grain transport capacity by approximately 10%. These improvements underscore CN's commitment to bolstering the North American economy and ensuring efficient supply chains amidst challenging conditions.

Positive

• Record grain movement of over 2.88 million metric tons in October 2020, surpassing previous records.
• On track to exceed 3 million metric tons for October.
• Receiving 1,500 new high-capacity grain hopper cars to enhance transport capacity by 10%.

Negative

• None.

Record comes as company prepares to receive new grain hopper cars sooner than planned

MONTREAL, Oct. 30, 2020 (GLOBE NEWSWIRE) -- With two days left in October, CN (TSX: CNR) (NYSE: CNI) has already exceeded the previous record of 2.88 million metric tons of Canadian grain moved set in October 2019 and is on track to exceed the previously unattained 3 MMT mark. This unprecedented performance follows seven record months of Canadian grain movement in March, April, May, June, July, August, and September.

CN is also pleased to announce that it will be receiving its first shipment of the 1,500 North American Built, new generation, high-capacity, grain hopper cars, with 100 cars already received and another 500 expected to be in service between now and the end of the year.  These new 5,431 cubic foot, 55-foot eight-inch jumbo grain hopper cars, can carry approximately 10% more grain than older generation cars. This order follows CN’s 2018 order of 1,000 grain cars which are all in service.

“Our devotion to moving the North American economy remains unwavering and this new unprecedented record is further proof of the essential role we play in the global supply chains. The expedited delivery of the new hopper cars also reiterates our commitment to being ready for 2021 and beyond with additional capacity and confidence in our ability to deliver safely for our customers, the economy and the communities we serve. I want to thank the CN ONE TEAM and Canadian grain farmers for their work and dedication in these difficult times. Without their collaboration and support, these records would not be possible.”

- Rob Reilly, Executive Vice-President and Chief Operating Officer of 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.

About CN
CN is a world-class transportation leader and trade-enabler. Essential to the economy, to the customers, a

FAQ

What record did CN (CNI) achieve in October 2020 regarding grain movement?

In October 2020, CN exceeded the previous record by moving over 2.88 million metric tons of Canadian grain.

How many new grain hopper cars is CN receiving?

CN is receiving 1,500 new high-capacity grain hopper cars.

What is the expected capacity increase from the new hopper cars for CN (CNI)?

The new hopper cars can carry approximately 10% more grain than older generation models.

How does CN's performance in grain movement compare to previous years?

CN's performance in October 2020 follows seven consecutive months of record-breaking Canadian grain movement.

What is CN's commitment to the North American economy?

CN emphasizes its dedication to supporting the North American economy through efficient grain transport and supply chain management.