TORONTO, March 30 /PRNewswire-FirstCall/ - Metrolinx has purchased a section of CN's Kingston Subdivision rail line, used primarily for commuter and passenger rail operations in eastern Toronto, for C$299 million.
The rail line acquired by Metrolinx from CN (TSX: CNR) (NYSE: CNI) is composed of the two- and three-track rail corridor east of Union Station in downtown Toronto to a junction near Whites Road in Pickering, Ont., where the line connects with GO Transit's separate rail right-of-way.
Metrolinx President and Chief Executive Officer Bruce McCuaig said, "With today's announcement, Metrolinx gains full ownership of an important segment of GO Transit's Lakeshore East commuter rail corridor from Union Station to Oshawa, Ont., and a direct connection to GO's Stouffville corridor in eastern Toronto.
"Owning this rail corridor section better positions GO to improve service, better control operations and plan future service growth."
Metrolinx now owns 61 per cent of the rail corridors on which GO Transit operates.
CN President and Chief Executive Officer Claude Mongeau said, "We are pleased to have concluded this sales agreement to transfer a critical link in the commuter rail network to Metrolinx, while protecting CN's operating rights over this line to ensure continued service to its freight customers. CN has a strong partnership with Metrolinx and we will continue to support commuter rail as a sustainable mode of transport in the Greater Toronto Area."
Please visit www.cn.ca/kingston for a map of the Kingston Subdivision and CN and GO Transit rail corridors in the Greater Toronto Area.
Metrolinx is the Province of Ontario's regional transportation agency for the Greater Toronto and Hamilton Area (GTHA). For more information, go to www.metrolinx.com. GO Transit, a division of Metrolinx, is Ontario's inter-regional public transit system linking Toronto with the surrounding regions of the GTHA. GO carries more than 57 million passengers a year in an extensive network of train and bus services that spans over 10,000 square kilometres. For more information, go to www.gotransit.com.
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.
Certain information included in this news release constitutes "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 factors that could affect the above 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.
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