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EDMONTON (CP) - Canadian National Railway Co. (TSX:CNR) is buying the 555-kilometre Savage Alberta Railway from Savage Companies of Salt Lake City, Utah, for $25 million.
"The acquisition represents an opportunity for CN to solidify its freight franchise in resource-rich northwestern Alberta," Montreal-based CN said Friday.
The Savage Alberta Railway transported about 35,000 carloads of freight last year, and CN said it will upgrade the shortline's track to transport more coal, grain and forest products.
The SAR's primary connection with CN is at Swan Landing, Alta., about 60 kilometres northeast of Jasper. It then runs north to Grande Prairie, the base of operations, where one branch runs west to a connection with CN at Hythe, Alta., and another branch runs northeast to Wanham, Alta.
CN said it began operating the line Friday and is offering employment to SAR's approximately 75 employees and would honour the existing collective labour agreement which covers about half the workers at the railway.
© The Canadian Press, 2006
Link to article
"The acquisition represents an opportunity for CN to solidify its freight franchise in resource-rich northwestern Alberta," Montreal-based CN said Friday.
The Savage Alberta Railway transported about 35,000 carloads of freight last year, and CN said it will upgrade the shortline's track to transport more coal, grain and forest products.
The SAR's primary connection with CN is at Swan Landing, Alta., about 60 kilometres northeast of Jasper. It then runs north to Grande Prairie, the base of operations, where one branch runs west to a connection with CN at Hythe, Alta., and another branch runs northeast to Wanham, Alta.
CN said it began operating the line Friday and is offering employment to SAR's approximately 75 employees and would honour the existing collective labour agreement which covers about half the workers at the railway.
© The Canadian Press, 2006
Link to article