First agreement with a municipality addresses quiet zones, grade crossing
issues, and operations of the proposed transaction
CHICAGO, IL, Aug. 25 /CNW Telbec/ - CN (TSX:CNR)(NYSE: CNI) said today
that it has reached an agreement with the City of Joliet regarding CN's
proposed acquisition of the major portion of the Elgin, Joliet & Eastern
Railway Company (EJ&E). The agreement resolves the outstanding concerns the
City of Joliet has related to quiet zones, operations, and communications
surrounding the transaction.
The conditions of the negotiations are contingent upon approval of CN's
proposal to acquire control of the EJ&E, which is being considered by the
federal Surface Transportation Board (STB). As stated in STB's Draft
Environmental Impact Statement, the Board has encouraged voluntary agreements
between CN and communities.
"We believe this will be the first of many agreements between CN and the
communities along the EJ&E line that are impacted by this transaction," stated
Gordon T. Trafton Senior Vice-President, Southern Region. "We have
consistently been willing to work with and address the concerns of communities
across the region. We believe this agreement with Joliet is evidence that
these concerns can be mitigated."
CN has been actively engaged in the environmental review process and will
participate in the public hearings in August and September. CN also is
actively working with other affected communities along the EJ&E line in an
effort to reach voluntary mitigation agreements addressing reasonable
environmental concerns associated with increased train traffic on the EJ&E.
Upon approval of the agreement and final approval of the acquisition, CN
will fulfill its commitments to the City of Joliet contained in this agreement
within a three-year period. These terms include significant investment in
track improvements and roadway features along the route through Joliet.
"The purchase of the EJ&E will have far-reaching economic and
transportation benefits to the Chicago region and the nation, and we are eager
to continue our negotiations with other communities," Trafton said. More
information on the transaction, including a map of the areas served by the
EJ&E and CN, is available by clicking on the EJ&E Acquisition icon on the
"About CN" section of its website
This news release contains forward-looking statements. CN cautions that,
by their nature, forward-looking statements involve risk, uncertainties and
assumptions. In addition to the other assumptions contained in this release,
the Company believes the U.S. economy is currently experiencing recessionary
conditions, but assumes that it will recover within the next six to nine
months, and that the global economy will grow at a moderate pace throughout
this period. The Company cautions that these assumptions may not materialize.
The Company's results could differ materially from those expressed or implied
in such forward-looking statements. Important factors that could cause such
differences include, but are not limited to, industry competition, legislative
and/or regulatory developments, compliance with environmental laws and
regulations, various events which could disrupt operations, including natural
events such as severe weather, droughts, floods and earthquakes, the effects
of adverse general economic and business conditions, inflation, currency
fluctuations, changes in fuel prices, labor disruptions, environmental claims,
investigations or proceedings, other types of claims and litigation, 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 CN's
most recent Form 40-F filed with the United States Securities and Exchange
Commission, its Annual Information Form filed with the Canadian securities
regulators, and its 2007 Annual Consolidated Financial Statements and Notes
thereto and Management's Discussion and Analysis (MD&A), as well as its 2008
quarterly consolidated financial statements and MD&A, for a summary of major
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 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.
CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and mid-America, from the Atlantic and Pacific
oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert,
B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key
metropolitan areas of Toronto, Buffalo, 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 further information:
For further information: Jim Kvedaras (Media), Senior Manager, U.S.
Public & Government Affairs, CN, (708) 332-3508; Robert Noorigian (Investors),
Vice-President, Investor Relations, CN, (514) 399-0052