Investment in the Northwest is nothing but good news for CN

Warren Buffet is a fan, as is Bill Gates, for CN having some of the world’s richest men express an interest in their company is a sure sign that they may be on the right track as they say.

While the rich industrialists examine their stock options, the railroad has been busy investing and expanding in its presence in the North and Northwest all tied in to the Port of Prince Rupert’s gateway to the world.

The Daily news featured a front page story on Wednesday that examined the railroads accomplishments in the last year, and where it sees the future going.

And wherever that future is going it would seem that a good portion of it will pass through the Port of Prince Rupert.

CN RAIL INVESTMENT ENSURES ALL RAILS LEAD TO RUPERT PORT

By Leanne Ritchie
The Daily News
Wednesday, February 06, 2008

Pages one and three

With the Northwest transportation corridor up and running, northern Alberta transportation companies are working to increase the amount of traffic running through the Asia Pacific Gateway.

Earlier this week, Hunter Harrison, president and CEO of CN Rail, said investments in new infrastructure along its Northwest corridor are strengthening the domestic rail network in northern Alberta and bolstering the company's position in the international marketplace.

"CN's purchase of regional railways in Alberta and our commitment to upgrade these railways, our substantial investments in network capacity and new locomotive acquisitions, along with the investments to support global trade at the Port of Prince Rupert and in-land at Prince George, B.C., are significant for the economy of Canada," he said.

"We are protecting and ensuring the sustainability of rail service to resource industries in Alberta and investing in plant and equipment to provide quality rail infrastructure and service to all Canadian shippers. CN's investments are strengthening the Canadian rail network and helping to support the competitiveness of Canadian industry in North American and global markets."
CN is currently in the process of upgrading three Alberta shortlines that it acquired in recent years, strengthening the railway's connections to grain and oil and gas producing areas in northern Alberta.

In December 2007, the company announced the $25-million acquisition of the Athabasca Northern Railway Ltd. (ANY) and plans to rehabilitate ANY's rail line for $135 million during three years.

In 2006, CN purchased the Mackenzie Northern (MKNR) Railway and Lakeland & Waterways Railway (LWR) for $26 million and the Savage Alberta Railway, Inc., (SAR) for $25 million.
The company spent more than $60 million upgrading the three railways in 2006 and 2007, and will spend another $26 million on further upgrades to the properties in 2008. These rail lines give CN access to pulp and grain producing regions.

Finally, CN invested almost $300 million in Canada during 2003-2007 to extend sidings for more efficient train operations, to increase network train speeds and to improve the fluidity of yards and terminals on the northwestern route.

CN's extended siding program includes longer passing tracks to the Port of Prince Rupert.
Meanwhile, in early January, Edmonton Airports, the Edmonton Chamber of Commerce and Edmonton Economic Development Corp. signed a memorandum of understanding that is the first step toward making the city into a leading global transportation and trade hub.

One of the goals is to establish Edmonton as Canada's first "free port" to attract more international business. A free port allows goods for reshipment to be received and stored without paying duties.

The memorandum commits the three parties to ensuring that the Edmonton Region develops as a major North American warehousing, distribution, and multi-modal hub, linking road, rail, and air throughout the region with marine ports on the West Coast.

"Alberta's $46 billion GDP annual economy now has an express-lane to unprecedented trans-Pacific trade," said Ron Gilbertson, president and CEO of Edmonton Economic Development Corp. "Port Alberta will co-ordinate a strategy to optimize our region's 'road, rail and runway' infrastructure so Edmonton industry can capitalize on new export and back-haul opportunities with Asian markets."

The city of Edmonton is one of three communities, including Prince Rupert and Prince George, that have committed to working together to ensure the successful development of the northwestern transportation corridor.

Edmonton has hosted several events aimed at promoting the new Fairview Container Terminal.