(The Canadian Press circulated the following article on May 11.)
MONTREAL — Canadian National Railway said today it has completed the acquisition of Great Lakes Transportation and can proceed to integrate its two railways and marine operations.
The railroads are the 550-kilometre Duluth, Missabe and Iron Range Railway Co., a carrier of pelletized iron ore in Minnesota and Wisconsin; and the Bessemer and Lake Erie Railroad Co., which carries primarily coal, iron ore and limestone between the Lake Erie port of Conneaut, Ohio, and steel mills in the Pittsburgh area.
In the $380-million (U.S.) acquisition announced last October, CN will also take over a switching railroad that performs bulk transfer operations between trains and ships at three docks at Conneaut.
CN (TSX: CNR) also acquired a fleet of eight Great Lakes vessels transporting bulk commodities, principally for the United States steel industry. The ships will be operated by a third company.
The takeover required approval by the U.S. Surface Transportation Board.
Chief executive Hunter Harrison said the acquisition will improve traffic flows for western Canadian shippers between Winnipeg and Chicago and provide access to CN’s network for iron ore mines in the Mesabi Range of Minnesota.