Distribution facility scheduled to be complete by year-end 2012
CALGARY, June 14, 2011 /PRNewswire/ - CN (TSX: CNR) ( NYSE: CNI) announced today that construction of its new Calgary Logistics Park, an investment of approximately C$200 million, will start this summer with target completion by year-end 2012. The project was first announced in February 2010.
Claude Mongeau, president and chief executive officer, said: "CN is eager to break ground for the new logistics park, which will provide seamless transportation solutions to rail customers moving products and commodities into and out of Calgary, one of the fastest growing cities in North America and a key logistics hub for consumer and industrial goods markets in southern Alberta."
Click on http://www.cn.ca/documents/About-CN/map-cn-calgary-logistics-park-en.pdf for a map showing the location of the Calgary Logistics Park.
The 680-acre logistics park in Conrich, Alta., located in Rocky View County northeast of Calgary, will feature:
- A state-of-the-art intermodal terminal for containerized goods moving between rail and truck, with ample room for customers to build on-site distribution centres that will eliminate costly handling and drayage cost to move product to other facilities;
- More than two million square feet of warehousing capacity, including a multi-commodity rail-to-truck transload and warehouse facility, and
- Dimensional shipment and heavy container handling capacity.
CN also plans to have an automotive compound for regional vehicle distribution ready during 2013, and to add a liquid and dry-bulk transload and distribution facility to the logistics park at a later date.
CN expects to complete construction of the logistics park by the end of 2012, when it will transfer intermodal activities and Calgary personnel to the new facility. Operations will start in early 2013.
The new facility, with ready access to Stoney Trail and other major roadways including the Trans Canada Highway, is situated on Twp Road 250/McKnight Boulevard and is just 10 kilometres from Calgary International Airport.
CN provides competitive rail transit times to and from Calgary from eastern and Western Canada, including the ports of Vancouver and Prince Rupert, B.C., and direct access to markets in the United States.
"We are thrilled with the news of this new facility and with the collaborative partnership we have formed with CN," said Rolly Ashdown, Rocky View County Reeve. "The Logistics Park is a great addition to Rocky View County and the region, helping to support our goal of a healthy and diversified economy. CN's investment in our community demonstrates the region's capacity to attract business investment due to our wide range of rural and urban amenities."
Mongeau said: "The Calgary Logistics Park is part of CN's plan to build similar multi-modal facilities across our network at key distribution nodes to handle a variety of goods and commodities. Our goal is to reduce logistics costs for our customers through highly efficient materials handling, transportation and distribution processes. With this approach, CN can help its customers grow, enhance the economic development of the communities we serve, and position the railway CN for greater traffic growth."
Certain information included in this news release are "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. CN cautions that, by their nature, these forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company or the rail industry to be materially different from the outlook or any future results or performance implied by such statements.
Important risk factors that could affect the forward-looking statements include, but are not limited to, the effects of general economic and business conditions, industry competition, inflation, currency and interest rate fluctuations, changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and regulations, actions by regulators, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims, uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from derailments, and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to "Management's Discussion and Analysis" in CN's annual and interim reports, Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN's website, for a summary of major risks.
CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related maters, or any other forward-looking statement.
CN - Canadian National Railway Company and its operating railway subsidiaries - spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America. For more information on CN, visit the company's website at www.cn.ca.