CN to Purchase 1,000 Grain Cars
Company was waiting on passage of omnibus bill to buy cars
CN announces it plans to acquire 1,000 new generation high-cube grain hopper cars over the next two years to rejuvenate the aging equipment needed to serve increasing annual crop yields.
“This substantial investment in higher capacity payload hopper cars, with up to 10% more capacity than the older generation, demonstrates our commitment to safely, efficiently and reliably moving the steadily increasing Prairie grain crop for our customers,” says JJ Ruest, interim president and chief executive officer of CN.
“We clearly understand how important having an effective grain supply chain is to our nation’s reputation as a stable trade partner. With this week’s news of regulatory certainty, we can now make decisive long-term investments that will benefit the entire grain industry.”
CN is buying new, 55-foot eight-inch jumbo hopper cars with 5,431 cubic feet of capacity. CN’s 12,000-car Western Canadian grain fleet is comprised of CN-owned hoppers, leased cars and private customer equipment.
The new hopper cars will allow the phase out of older, lower-capacity cars from the CN-owned and leased fleet, which has an average age of more than 30 years.
“Canada’s grain hopper cars are rolling toward the end of their lives,” says Kyle Jeworski, president and chief executive officer of Viterra. “Over the last several years, Viterra has made significant, targeted investments in its country grain elevator network, and we welcome this major investment and commitment by CN to get Prairie grain to world markets.”