(Bloomberg News circulated the following article by Rip Watson on August 18.)
OTTAWA — Canadian National Railway Co., the country’s biggest railroad, said it will boost capacity by 20 percent for consumer-goods shipments between Asia and Canada as cargo destined for North America from China expands.
The company will add capacity to handle 125,000 more shipments between Vancouver and Toronto or Montreal using trains in combination with cargo ships and trucks. Domestic shipping capacity will rise 10 percent on the same route with the addition of a train and rail cars to existing service, spokesman Mark Hallman said in an interview.
Canadian National, based in Montreal, and rival Canadian Pacific Railway Ltd. of Calgary are rushing to add capacity as Asian trade grows in Vancouver, Canada’s biggest port. The additional capacity, effective Aug. 22, is coming as retailers build inventory for year-end holidays and will extend beyond the season.
Hallman wouldn’t say how much the added capacity would cost Canadian National. One daily train in each direction is being added between Winnipeg, Manitoba, and Toronto, and rail cars are being added to existing service between Winnipeg and Vancouver, he said.
Canadian Pacific earlier this year announced a C$160 million expansion program in western Canada to increase train capacity by 12 percent this year.
Canadian National shares fell 30 cents to $C78.75 at 4:05 p.m. in Toronto.