(The Canadian Press circulated the following story on April 9.)
MONTREAL — Canadian National Railway Co. has set in motion plans to expand its non-rail business activities to such areas as warehousing and distribution, customs services and logistics.
A key focus in 2007 will be increasing CN’s material-handling ability in new and existing facilities strategically located across the Montreal-based railway’s network.
CN WorldWide North America, a new entity being formed as part of the initiative, also plans to introduce new offerings to the unit’s service portfolio, CN said yesterday.
Those include retail intermodal trucking services in the United States and freight forwarding within North America.
Canadian National is Canada’s biggest railway company. Its rail network stretches between the Atlantic and the Pacific oceans and throughout the United States.
The announcement comes as one of CN Rail’s unions, which staged a strike in February that disrupted service across the country, is preparing to release the results of a vote on a proposed settlement between the two sides.
The United Transportation Union has said it will release results of the vote this afternoon.
CN shares gained $2.68, or 5.3 per cent, to close at $53.58 on the Toronto Stock Exchange yesterday.
Railway prices were higher after news Berkshire Hathaway is now the largest shareholder in Burlington Northern Santa Fe Corp.