TIMMINS, Ont. — Canadian National Railway says it’s ready to invest more than $30 million in the Ontario Northland if its bid for the government-owned railway serving northern Ontario and northwestern Quebec is accepted, the Canadian Press reported.
Canada’s biggest railway was selected by the Ontario government last month to negotiate a deal to buy the regional rail carrier, which operates rail freight and passenger services over an 1,100-kilometre network.
The purchase price is still under negotiation.
The Northland, owned by the Ontario government, is also known as ONRail and its primary connection with CN is at North Bay, about 320 kilometres north of Toronto.
CN is prepared to invest $30 million in ONRail assets and employees, Keith Heller, CN’s senior vice-president for Eastern Canada, told a meeting of northern Ontario municipal officials Friday.
The money would be spent on right-of-way and highway crossing improvements, shop equipment, passenger train upgrades, modern tools, systems and employee training.
“The investments are subject to ONRail unions agreeing to come under CN’s existing collective agreements,” Montreal-based CN said in a release.
Heller, speaking to the Northeastern Ontario Municipalities Action Group, said CN’s plans for ONRail will benefit shippers, communities and employees.
He said CN would offer ONRail shippers more frequent, reliable service and greater reach into important consumer markets. Communities would also enjoy more reliable passenger services for inter-city travel and tourism, Heller said.
CN plans to increase freight service from five to seven days a week, provide 90 per cent on-time service, offer scheduled transit times and establish a guaranteed car supply program for shippers.
The acquisition would protect jobs, Heller said, by fully using the North Bay, Ont., rail shop through “in-sourcing,” making Cochrane shops responsible for passenger equipment repair and maintaining the operations centre at Englehart.
Passenger services would benefit from a new reservation system, renovated rolling stock for the Little Bear route, more passenger cars for the Northlander and eco-tourism promotion of the Polar Bear service in partnership with the Moose Cree First Nation.
The union representing Ontario Northland workers has said a sale won’t come until next spring, but CN wants a deal by year-end.
In trading on the Toronto stock market Friday, Canadian National (TSX:CNR) shares fell $1.17 to $65.71.