Media Kit » Try RailPrime™ Today! »
Progressive Railroading
Newsletter Sign Up
Stay updated on news, articles and information for the rail industry

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

View Current Digital Issue »


Rail News Home M&A


Rail News: M&A

CN takes ownership of Great Lakes Transportation's short lines, shipping company


Today, Canadian National Railway Co. announced it completed a $380 million deal with Great Lakes Transportation L.L.C. under which the Class I acquires three short lines and shipping firm Great Lakes Fleet Inc. In October, the companies reached a purchase agreement; last month, the Surface Transportation Board conditionally approved CN's acquisition of the three railroads.

CN plans to integrate the 355-mile Bessemer and Lake Erie Railroad Co., 212-mile Duluth, Missabe and Iron Range Railway Co. (DM&IR), and switching road The Pittsburgh & Conneaut Dock Co. into its 17,500-mile North American system.

Under a vessel-management agreement, Keystone Shipping Co. will operate Great Lakes' eight ships for CN. The vessels transport bulk commodities — primarily for the U.S. steel industry — across the Great Lakes.

The acquisition will enable CN to obtain "new efficiencies in network performance and become a major player in the bulk commodities stream for the United States steel industry," said CN President and Chief Executive Officer E. Hunter Harrison in a prepared statement. "Western Canadian shippers will benefit from improved traffic flows in our NAFTA corridor between Winnipeg and Chicago."

By acquiring DM&IR, CN obtains ownership of a 17-mile line in the Duluth, Minn./Superior, Wis., area, and a parallel line north of the two cities that will enable the Class I to improve the region's train dispatching and eliminate the cost of improving its own line in the corridor.

Contact Progressive Railroading editorial staff.

More News from 5/10/2004