(The Associated Press circulated the following article on January 19.)
NEW YORK — Canadian National Railway Co. and Burlington Northern Santa Fe Corp. on Thursday said they have struck a railroad-sharing agreement to improve flow and capacity over rail lines in Vancouver, Chicago and the southern Midwest.
The pact includes track and rail infrastructure exchanges, and Canadian National will grant Burlington access rights to some of its rails.
Under the deal, Canadian National obtains operational control over 12 miles of joint track between New Westminster, British Columbia, and ocean ports. In Chicago, Burlington gains operational control of Canadian National’s Corwith Tower interlocker.
Burlington also obtains the rights to travel Canadian National rails for 30 miles between Corwith and Joliet, Ill., and trackage rights on lines between Memphis and southern Illinois.
“These agreements provide BNSF with increased capacity and dispatching efficiencies in Chicago and Memphis,” said Matthew K. Rose, Burlington chairman, president and chief executive. “In addition, we now can tap CN’s surplus capacity between Memphis and Centralia, Ill., to expand our ability to handle more traffic.”
Canadian National President and Chief Executive called the deal a “creative means of improving network fluidity and increasing traffic density on our system.”
Shares of Canadian National added $2.60 to close up 3.4 percent at $80.12, while Burlington shares rose $3.07, or 4.5 percent, to end at $71.90 on the New York Stock Exchange.