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CN increases car capacity for North American steel

10/08/2010 AT 11:48

As part of this initiative, CN has established strategic car staging locations near producer facilities, allowing it to respond quickly to producers' spot sales requirements. One location is at Sorel-Tracy, Que., northeast of Montreal, the other at Paris, Ont., located west of Hamilton.

CN is also acquiring 200 standard gondolas and 200 open coil gondolas to expand and improve the quality of its freight car fleet serving the North American steel industry.

The new gondolas and coil cars follow CN's acquisition of almost 700 new iron ore cars this year and last for hauling pelletized iron ore in the Upper Midwest.

Jean-Jacques Ruest, CN executive vice-president and chief marketing officer, said: “CN is working closely with its steel customers to develop innovative transportation solutions that make the entire supply chain more efficient.”

Yasushi Tago, president of Sumitomo Canada Ltd., said: “We are pleased to see CN's investment in end-to-end transportation solutions and the company's commitment to meeting the needs of our business. A reliable, efficient transportation system is vital to the success and growth of our business during this economic recovery.”

Ruest said: “CN's network reaches the vast majority of major Canadian and U.S. hot-rolled steel production capacity and features an extensive network of strategically located transloading facilities. We also play a critical role in the raw materials supply chain of the steel industry through our transportation of iron ore.

”CN wants to expand its steel business. With an end-to-end supply chain focus and new equipment, we aim to help our steel customers grow and capture an increasing share of their new business.”

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