(The following story appeared on The Canadian Press website on October 7, 2010.)
MONTREAL — Canadian National Railway Co. (TSX:CNR) is expanding its capacity to haul steel on short notice for North American steel producers with new steel-carrying cars and a revamped network.
Canada’s largest railway company said Thursday that it’s acquiring about 400 new steel-carrying cars and is revamping its network near major steel companies based in Sorel-Tracy, Que., and near Hamilton in southern Ontario to respond quickly to “spot sales” requirements.
“With an end-to-end supply chain focus and new equipment, we aim to help our steel customers grow and capture an increasing share of their new business,” said Jean-Jacques Ruest, CN executive vice-president and chief marketing officer.
The Montreal-based railway said it’s acquiring 200 standard gondolas and 200 open-coil gondolas to expand and improve the quality of its freight car fleet.
The new gondolas and coil cars follow CN’s acquisition of almost 700 new iron ore cars in the last two years.
Ruest said CN’s network reaches the vast majority of major Canadian and U.S. hot-rolled steel production capacity and the railway also plays a critical role in the industry through its transportation of iron ore.