CN orders 70 new high-horsepower locomotives from GE and EMD

    
    New diesel-electric locomotives will increase fuel efficiency, improve
    customer service and cut greenhouse-gas emissions
    

MONTREAL, Oct. 21 /CNW Telbec/ - CN (TSX: CNR)(NYSE: CNI) announced today orders for 70 new high-horsepower locomotives from GE Transportation, a unit of General Electric Co. (GE), and Electro-Motive Diesel, Inc. (EMD).

CN will acquire 35 ES44DC locomotives from GE starting in the fourth quarter of 2010, and 35 SD70M-2s from EMD beginning in January 2011. The GE locomotives produce 4,400 horsepower and the EMDs 4,350 horsepower.

The new units are part of CN's multi-year locomotive-renewal program aimed at continuously increasing fuel efficiency, improving service reliability for its customers, and reducing greenhouse-gas emissions.

The new locomotives are 15-20 per cent more fuel-efficient than the ones they will replace and will comply fully with the latest regulatory requirements for reduced locomotive exhaust emissions.

In addition, the new GE and EMD locomotives will be equipped with distributed power (DP) capability. DP enables remote control of a locomotive or locomotives throughout a train from the lead control locomotive.

DP provides faster, smoother train starts, improved braking and lower pulling forces at the head-end of a train. This enables CN to run fewer and more efficient trains and to take advantage of the productivity gains from its extended siding program. With more optimum matching of motive power to train weight, DP locomotives also allow CN to reduce fuel consumption and reduce emissions.

CN is the green, energy-efficient choice for shippers. Rail has been shown to be up to six times more energy-efficient than heavy trucks, because rail consumes a fraction of the fuel to transport one tonne of freight one kilometre. In fact, we can move one tonne of freight almost 200 kilometres on just one litre of fuel.

CN has a comprehensive corporate environmental policy and works closely with the rail industry in Canada and the United States and government agencies on ways to reduce its emissions.

The company's innovative Precision Railroading model, and partnership agreements with other railroads to share assets and deliver interchange traffic at the most efficient gateways, have also reduced fuel consumption and emissions.

Forward-Looking Statements

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 the current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. 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, the effects of adverse general economic and business conditions, including the recession in the North American economy and the global economic contraction in 2009, 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 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 more information on CN, visit the company's website at www.cn.ca.

SOURCE CN

For further information: For further information: Media: Mark Hallman, Director, Communications & Public Affairs, (905) 669-3384; Investors: Robert Noorigian, Vice-President, Investor Relations, (514) 399-0052


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