Railroad News

CN today announced it closed the acquisition of The TransX Group of Cos., one of Canada's largest and oldest transportation firms.

TransX provides various transportation and logistics services, including intermodal, truckload, less than truckload and specialized services. The company will continue to be based in Winnipeg, Manitoba, and operate independently.

The Transportation Safety Board of Canada (TSB) has found that a broken axle on a freight car led to the January 2018 derailment of a CN train near New Hazelton, British Columbia.

The incident occurred when a CN train moving west at 29 mph experienced a train-initiated emergency brake application near New Hazelton. A subsequent inspection determined that 27 gondola cars loaded with coal derailed, with some of the product spilling into a nearby waterway.

CN, the Canadian government and Vancouver Fraser Port Authority have signed an agreement calling for upgrades to the Burrard Inlet rail corridor that serves the south shore port area in Vancouver.

The work is necessary to increase capacity on a critical segment of trade infrastructure in the Vancouver area, according to a press release. The project calls for double tracking a 2.5-mile section of rail that links expanding import and export terminals on the Burrard Inlet's south shore to the national rail network.

The "Canada's Top 100 Employers" project has recognized CN as one of Montreal's top employers, the Class I announced yesterday.

This is the third consecutive year that the railroad has been recognized by Canada's Top 100 Employers, an annual competition first published in 2006, CN officials said in a press release.

CN employees who are members of United Steelworkers Local 2004 (USW) have approved a new five-year contract, the union and Class I announced yesterday.

For the past several weeks, members have been voting on the tentative agreement reached between CN and Local 2004 in December 2018. The contract covers 3,000 USW members who inspect, maintain and repair CN's system of track, bridges and infrastructure in Canada.

Unifor Local 100 members have voted in favor of ratifying a new four-year collective agreement with CN.

The agreement — which covers 2,100 locomotive and freight-car mechanics, electricians and apprentices — represents a "breakthrough in improvements to benefits at CN," Unifor officials said in a press release.

CN yesterday reported fourth-quarter revenue of CA$3.8 billion, up 16 percent compared with fourth-quarter 2017 results.

Operating income climbed 19 percent to CA$1.4 billion and adjusted diluted earnings per share jumped 24 percent to CA$1.49. Diluted earnings in fourth-quarter 2017 included a deferred income tax recovery of CA$2.35 per share resulting from the enactment of a lower U.S. corporate income tax rate, CN officials said in a press release.

CN has met all Dec. 31 milestone deadlines in its positive train control (PTC) implementation plan, the Class I announced last week.

Last month, CN applied to the Federal Railroad Administration (FRA) for a two-year extension to complete deployment and interoperability of its PTC system, according to a press release.

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.

CN reported yesterday its third-quarter net income rose 18.4 percent to CA$1.1 million from CA$958 million in the same period a year ago.

Diluted earnings per share (EPS) in the quarter increased 21 percent to CA$1.54 over the Q3 2017 total. Adjusted net income climbed 11 percent to CA$1.1 million, while adjusted diluted EPS climbed 15 percent to CA$1.50, CN officials said in a press release.

CN has begun to roll out the first of its new centerbeam rail cars ordered earlier this year from National Steel Car Ltd.

CN received the first of 350 new centerbeams in August. The new builds are 73-foot riserless centerbeams with a maximum load capacity of 286,000 pounds, CN officials said in a website post.

CN has become the first transportation company in Canada to receive the Progressive Aboriginal Relations (PAR) Bronze Level certification from the Canadian Council for Aboriginal Business (CCAB).

Established in 2001, the certification signals to Aboriginal communities that designated companies are "good business partners, great places to work and committed to the prosperity of Aboriginal communities," according to a CN press release.

CN has been placed on the Dow Jones Sustainability World Index (DJSI) for the seventh consecutive year and the North American index for the 10th consecutive year, the Class I announced yesterday.

The DJSI World Index recognizes the top 10 percent of the 2,500 largest companies in the S&P Global Broad Market Index from each sector based on their sustainability scores.

CN will purchase another 60 GE Transportation locomotives, expanding the Class I's 200-unit order placed in December 2017, the Class I and GE announced today.

All the CN locomotives will be produced at GE's plant in Fort Worth, Texas. The new purchase includes a multiyear service agreement.