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Canadian National Railway Co. plans to reduce its U.S. divisions from three to two.


Beginning Jan. 1, the Class I's Midwest Division will include the former Wisconsin Central Ltd. (WC); all operations in Michigan, Indiana and Ohio; trackage in northern Minnesota; Illinois operations north of Chicago; and most operations in Chicago.


The Gulf Division will include all operations in Illinois west and south of Chicago, and all trackage and operations in Kentucky, Tennessee, Mississippi, Louisiana, Alabama, Iowa and Nebraska.


CN currently operates a Wisconsin Central Division, governing parts of Minnesota, Wisconsin and Michigan; Midwest Division, governing parts of Nebraska, Iowa, Illinois, Wisconsin, Indiana and Michigan; and Gulf Division, governing parts of Missouri, Kentucky, Tennessee, Mississippi, Louisiana and Alabama.


"Reorganizing our divisions along geographical lines will help us maintain the focus of our operations and marketing on our customers, and better enable our top managers to stay in day-to-day contact with all of our employees," said E. Hunter Harrison, CN executive vice president and chief operating officer, in a prepared statement. Harrison will become CN's president and chief executive officer Jan. 1.


The Class I named Gordon Trafton vice president-Midwest Division and Peter Marshall, vice president-Gulf Division. Trafton has served as vice president-Wisconsin Central Division since CN acquired WC in October 2001. Marshall, who's served as vice president of the Midwest Division, previously managed the Gulf Division on an interim basis.


Meanwhile, the railroad is targeting a mid-2003 completion date for a new 55,000-square-foot building in Homewood, Ill., that would serve as the headquarters for both U.S. divisions.