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Rail News: Canadian National Railway - CN
CN to acquire TransX Group, move more frac sand for Source Energy
CN today announced it reached an agreement to acquire The TransX Group of Cos., one of Canada’s largest and oldest transportation companies.
TransX provides various transportation and logistics services, including intermodal, truckload, less than truckload and specialized services. The 55-year-old company will continue to be based in Winnipeg, Manitoba, and operate independently, CN officials said in a press release.
Terms of the deal weren’t disclosed, and the acquisition is subject to regulatory review by Competition Bureau Canada and Canada’s Ministry of Transportation.
The acquisition expands the Class I’s North American intermodal supply-chain services, helping to boost the intermodal franchise, CN officials said. In addition, it strengthens the railroad’s position in the specialized, fast-growing refrigerated segment, said CN President and Chief Executive Officer JJ Ruest.
The deal also solidifies TransX’s future as a leading intermodal services provider in North America, said Mike Jones, the company’s chief operating officer.
Meanwhile, a frac sand terminal in Alberta that’s served by CN will be a bit busier in the future due to a deal recently swung by Source Energy Services Ltd. and Strath Resources Ltd. Source Energy entered into a three-year agreement with Strath Resources to provide frac sand and related logistics services for two oil wells in Canada.
Source Energy will deliver northern white proppant to the wells via CN from its frac sand terminal in Wembley, Alberta. A second unit-train track recently was added at the terminal, which now features the capacity to transload more than 200,000 metric tons of frac sand per month.
Contact Progressive Railroading editorial staff.