TORONTO, April 8, 2009 /CNW/ - GO Transit and CN announced today that the
Toronto area commuter rail agency will acquire CN's Weston Subdivision for
expanded GO service between Union Station and regions northwest of the city.
This strategically important rail line runs from a point near Strachan
Avenue and Wellington Street West in downtown Toronto, northwest through the
city to CN's main east-west freight line near the intersection of Steeles
Avenue and Bramalea Road. The purchase is valued at C$160 million.
GO currently runs its Georgetown commuter rail service over the line,
which also accommodates VIA Rail trains running between Toronto, Kitchener,
and other points in southwestern Ontario. In total, the two passenger carriers
operate 46 trains per day over the line, while CN operates three daily local
freight trains along this corridor.
Under its agreement with GO Transit, CN will continue to serve its
freight customers on the Weston Subdivision. VIA will also continue to operate
trains on the line.
By owning the Georgetown rail corridor, GO is better positioned to add
more service, build new infrastructure, and expand its operations along that
line. This acquisition aligns with GO Transit's Strategic Plan, GO 2020.
"This is a major step forward for future growth and expansion along this
already busy corridor," said GO Transit Chairman Peter Smith. "This purchase
sets the framework for future GO rail corridor purchases, and we look forward
to continuing our strong, long-standing partnership with CN."
Claude Mongeau, CN executive vice-president and chief financial officer,
said: "CN is pleased to have reached this line-sale agreement with GO Transit.
GO is a valuable CN customer - the vast majority of its services in the
Greater Toronto Area operate over CN's rail network - and we believe this
transaction and our continuing partnership with GO will help to advance
commuter rail and its clear environmental benefits to the Toronto region. At
the same time, our line sale - reflecting CN's tight focus on asset management
- will also generate value for the company."
GO Transit is the Province of Ontario's interregional public transit
system linking Toronto with the surrounding regions of the Greater Toronto
Area (GTA). GO carries nearly 55 million passengers a year in an extensive
network of train and bus services that spans over 8,000 square kilometres.
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.
For further information:
For further information: Contacts for CN: Media, Mark Hallman, Director,
Communications, Media, (905) 669-3384, email@example.com; Investment
Community, Robert Noorigian, Vice-President, (514) 399-0052,
firstname.lastname@example.org; Contacts for GO Transit: Media, Vanessa Thomas, Media
Relations & Issues Specialist, (416) 869-3600 x5264