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RAIL EMPLOYMENT & NOTICES



Rail News Home M&A

7/15/2004



Rail News: M&A

CN: BC Rail now a done deal


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It's official. Yesterday, Canadian National Railway Co. completed its BC Rail Ltd. transaction with the province of British Columbia, enabling the Class I to begin integrating the 1,400-mile regional into its system.

CN recently reached a consent agreement with Canada's Competition Bureau requiring the railroad to share merger efficiencies with BC Rail shippers, establish an "Open Gateway Rate and Service Commitment" to ensure Vancouver gateway shippers have competitive transportation options, and maintain competitive rates and service for Peace River region grain shippers.

"We will now move forward with our plan to deliver better service and improved transit times to BC Rail shippers," said CN President and Chief Executive Officer E. Hunter Harrison in a prepared statement.

In November, the competition bureau began reviewing a "BC Rail Investment Partnership" under which CN agreed to pay the province $768 million in cash to acquire BC Rail's outstanding shares and the right to operate over the regional's roadbed under a long-term lease. The regional's rail bed will remain in public hands, with CN now assuming responsibility for rail transportation and infrastructure maintenance.


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