MONTREAL and NORFOLK, VA, Feb. 10 /CNW Telbec/ - CN (TSX: CNR) (NYSE:
CNI) and Norfolk Southern Corporation (NYSE: NSC) announced today an
initiative to create a "MidAmerica Corridor" in which the railroads will share
track between Chicago, St. Louis, Kentucky, and Mississippi to establish
shorter and faster routes for merchandise and coal traffic moving between the
Midwest and Southeast.
This initiative, when finalized through definitive agreements, will have
three components. First, Norfolk Southern (NS) will haul CN freight between
Chicago and St. Louis, reducing the distance between these points for CN
shipments by 60 miles and providing improved connections to other rail
carriers through the St. Louis gateway.
Second, NS will use CN's routes between St. Louis and Fulton, Ky., as
part of a new, more efficient route from the Midwest to the Southeast, saving
more than 50 miles on NS shipments.
Third, CN will haul NS freight between Chicago and Fulton, shortening
NS's Chicago-to-Birmingham route by almost 100 miles.
As part of the MidAmerica Corridor, CN and NS plan to create a new coal
gateway at Corinth, Miss., to better link NS-served southeastern utility
plants with CN-served Illinois Basin coal producers.
A key component of the new initiative is the West Tennessee Railroad
between Fulton and Corinth, which will be upgraded to handle heavier shipments
and additional rail traffic.
Editors: Downloadable map illustrating the MidAmerica corridor is
available by clicking on the link
E. Hunter Harrison, president and chief executive officer of CN, said:
"This innovative track-sharing arrangement will expedite our customers'
shipments, improve asset utilization and generate new efficiencies for both CN
Wick Moorman, chief executive officer of Norfolk Southern, said: "The
MidAmerica Corridor is an important partnership that will create better routes
for shippers on both railroads. On the Norfolk Southern system, it will help
level demand on our busy north-south routes, while improving service and
velocity for many more customers."
The initiative will be finalized with the completion of definitive
agreements and approval for the exchange of trackage rights with the U.S.
Surface Transportation Board in the next few months.
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, St.
Louis, and Jackson, Miss., with connections to all points in North America.
Norfolk Southern Corporation is one of the premier transportation
companies in the U.S. Its Norfolk Southern Railway subsidiary operates
approximately 21,000 route miles in 22 states and the District of Columbia,
serving every major container port in the eastern United States and providing
superior connections to western rail carriers. Norfolk Southern operates the
most extensive intermodal network in the East and is North America's largest
rail carrier of metals and automotive products.
This news release contains forward-looking statements. CN cautions that,
by their nature, forward-looking statements involve risk, uncertainties and
assumptions. Implicit in these statements, particularly in respect of
long-term growth opportunities, is the Company's assumption that such growth
opportunities are less affected by the current situation in the North American
and global economies. 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. The current situation in financial markets is adding a
substantial amount of risk to the North American economy, which is already in
a recession, and to the global economy, which is significantly slowing down.
The Company cautions that its 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 "Management's Discussion and Analysis" in
CN's annual and interim reports and 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.
Any statements contained in this news release which are not related to
historical facts are forward-looking statements as that term is defined in the
Private Securities Litigation Reform Act of 1995. Such forward-looking
statements are subject to risks and uncertainties (noted in Norfolk Southern's
filings with the SEC) which could cause actual results to differ.
For further information:
For further information: Contacts for CN: Media: Mark Hallman, (905)
669-3384, firstname.lastname@example.org; Investors: Robert Noorigian, (514) 399-0052,
email@example.com; Contacts for Norfolk Southern: Media: Rudy Husband,
(610) 567-3377, firstname.lastname@example.org; Investors: Leanne Marilley, (757)