CHICAGO, IL, May 28, 2013 /CNW Telbec/ - CN (TSX: CNR) (NYSE: CNI)
announced today it is accelerating work on the US$33-million upgrading
of its Whitehall Subdivision in Wisconsin to increase car-loading
capacity and train velocity for the growing frac sand supply chains of
Badger Mining Corporation, Preferred Sands of Wisconsin LLC, Atlas
Resin Proppants LLC, and Taylor Frac LLC.
The improvement program will permit the transportation of heavier loaded
frac sand freight cars weighing a maximum of 286,000 pounds, thereby
increasing the volume per car, generating increased productivity for
customer car fleets, and increasing train speed for CN.
CN will improve the 74-mile section of the Whitehall Subdivision between
Wisconsin Rapids and Blair, Wis., in three years rather than four to
obtain quicker customer gains. Work began in 2012 and the full program
should be completed by December 2014.
Jean-Jacques Ruest, CN executive vice-president and chief marketing
officer, said: "We are investing in increased rail capacity on the
Whitehall Subdivision to help move more frac sand and to develop a more
robust supply chain for our customers in Wisconsin to connect with the
oil and gas shale basins in North America."
Frac sand is used by oil and gas industries in the hydraulic fracturing
process to hold shale fractures open and let natural gas and oil flow
Stephen Hart, executive vice-president of Berlin, Wis.-based Badger
Mining, said: "We have significantly increased the frac sand production
capacity at our Taylor, Wis., facility, and CN's Whitehall Subdivision
improvement will enhance our ability to efficiently move this
production to both existing and new customers and markets. We are
encouraged by this significant investment in our industry by CN. Badger
has long understood the benefits gained from using rail to reach
markets when compared to other modes of transportation: larger volumes,
improved transit times, greater cost efficiencies and improved safety."
Bryan Hurtado, director of Preferred Pipeline, which provides logistics
services for Preferred Sands of Wisconsin, said: "Our company has
worked closely with CN for several years to build our frac sand and
logistics business. CN's move to advance its rehabilitation of the line
serving our plants and our partner suppliers' plants will help us to
more economically and efficiently move product."
Dan Valiquette, executive vice-president of Atlas Resin Proppants of
Taylor, Wis., said: "We appreciate CN's sizable investment in the
Whitehall Subdivision, which will improve the effective utilization of
our rail fleet, expand our product distribution, and ultimately provide
better service to our customers in key shale markets."
Pat McConnell, chief executive officer of Taylor Frac of Green Lake,
Wis., said: "Our company values its partnership with CN and sees the
acceleration of its upgrading program for the Whitehall Subdivision as
key to our plans to continue growing our market share."
CN is a true backbone of the economy, transporting approximately C$250
billion worth of goods annually for a wide range of business sectors,
ranging from resource products to manufactured products to consumer
goods, across a rail network spanning Canada and mid-America, from the
Atlantic and Pacific oceans to the Gulf of Mexico. CN - Canadian
National Railway Company, along with its operating railway subsidiaries
-- serves the ports of Vancouver, Prince Rupert, B.C., Montreal,
Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of
Toronto, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay,
Wis., Minneapolis/St. Paul, Memphis, and Jackson, Miss., with
connections to all points in North America. For more information on CN,
visit the company's website at www.cn.ca.
Certain information included in this news release is "forward-looking
statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and under Canadian securities laws. CN
cautions that, by their nature, these forward-looking statements,
including statements relating to the growth of the frac sand market,
involve risks, uncertainties and assumptions. The Company cautions that
its assumptions may not materialize and that current economic
conditions render such assumptions, although reasonable at the time
they were made, subject to greater uncertainty. Such forward-looking
statements are not guarantees of future performance and involve known
and unknown risks, uncertainties and other factors which may cause the
actual results or performance of the Company or the rail industry to be
materially different from the outlook or any future results or
performance implied by such statements.
Important risk factors that could affect the forward-looking statements
include, but are not limited to, the effects of general economic and
business conditions, industry competition, inflation, currency and
interest rate fluctuations, changes in fuel prices, legislative and/or
regulatory developments, compliance with environmental laws and
regulations, actions by regulators, various events which could disrupt
operations, including natural events such as severe weather, droughts,
floods and earthquakes, labor negotiations and disruptions,
environmental claims, uncertainties of investigations, proceedings or
other types of claims and litigation, risks and liabilities arising
from derailments, and other risks detailed from time to time in reports
filed by CN with securities regulators in Canada and the United States.
Reference should be made to "Management's Discussion and Analysis" in
CN's annual and interim reports, Annual Information Form and Form 40-F
filed with Canadian and U.S. securities regulators, available on CN's
website, for a summary of major risks.
CN assumes no obligation to update or revise forward-looking statements
to reflect future events, changes in circumstances, or changes in
beliefs, unless required by applicable Canadian securities laws. In the
event CN does update any forward-looking statement, no inference should
be made that CN will make additional updates with respect to that
statement, related matters, or any other forward-looking statement.
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