(Reuters circulated the following story on February 25.)
VANCOUVER, British Columbia — Canadian National Railway Co. signed a freight-hauling agreement on Friday with Ontario Northland’s rail unit, which it tried unsuccessfully to buy in 2003.
Under the two-year agreement, CN will pay ONRail to haul freight between North Bay, Ontario, and Noranda, Quebec, and between Noranda and Hearst, Ontario. Financial terms were not disclosed
The agreement is designed to reduce shipping time for CN’s freight traffic from northeastern Ontario and northwestern Quebec, and ease congestion at its switching yards in the Montreal area.
Canadian National, Canada’s largest railway, attempted to buy ONRail from the Ontario provincial government in 2003, but talks fell apart in a disagreement over job guarantees.