Thanks. I don't really need the chart since I research everything independently. I am a fundamentals type not a technical trader.
If I buy CNI it will be with the idea that I will hold it for a long time. A variety of things interest me in this company not the least of which is their net profit margin and the future outlook for the development of the tar sands in Canada.
my portfolio is way down right now
Everybody's portfolio is a bit anemic at the present - lol.
CN acquires three rail subsidiaries and ferry operation of Quebec Railway Corp. (QRC) for C$49.8 million Monday November 3, 9:00 am ET
Purchase adds QRC's core Ontario, Quebec and New Brunswick rail properties to CN's network
MONTREAL, Nov. 3 /PRNewswire-FirstCall/ - CN announced today the acquisition of the three principal railway subsidiaries of the Quebec Railway Corp. (QRC) and a QRC rail-freight ferry operation for $C49.8 million. Under the transaction, CN is purchasing 540 track miles of rail line it formerly owned in eastern Ontario, eastern Quebec and northern New Brunswick, as well as a ferry service on the St. Lawrence River in eastern Quebec. CN sold the rail lines to QRC in the late 1990s and has held a minority equity interest in the ferry operation since its start-up in 1975.
E. Hunter Harrison, president and chief executive, said: "The operations we're buying are important to CN because QRC is our second-largest short-line partner, serving important customers at origin and directly feeding our main-line network. QRC has done a great job with these rail properties, and we believe can improve on that in future. With CN's industry-leading operating model and track record of seamlessly integrating acquisitions, we expect to realize meaningful operating efficiencies from the addition of these properties to our network."
Pierre Martin, chairman of QRC, said: "We are pleased to have reached agreement with CN on the sale of these three rail subsidiaries and ferry operation. With our close partnership over the years, CN was the logical purchaser of these properties after QRC decided to dispose of key assets. We believe CN will build on our sustained customer focus to deliver even better service in future."
The QRC properties CN is purchasing are the:
- Chemin de fer de la Matapedia et du Golfe (CFMG) CFMG has 221 miles of track, interchanging with CN at Riviere-du-Loup, Que. It runs from Riviere-du-Loup to Campbellton, N.B., where it meets QRC's New Brunswick East Coast Railway. CFMG also has a line between Mont-Joli and Matane, Que., where a rail ferry operates to the north shore of the St. Lawrence River. CFMG serves major shippers of aluminum, paper and forest products. VIA Rail Canada Inc. uses the line between Riviere-du-Loup and Campbellton for its Maritime service between Montreal and Halifax.
- New Brunswick East Coast Railway (NBEC) The NBEC runs between Campbellton and Pacific Junction near Moncton, N.B. It is 196 miles long and interchanges with CN at Moncton Yard. In tandem with CFMG, the NBEC serves major shippers mainly in the mining and pulp and paper industries. VIA Rail uses the line between Campbellton and Pacific Junction for its Montreal-Halifax service.
- Ottawa Central Railway (OCR) The OCR runs between Coteau, Que., where it interchanges with CN, and Pembroke, Ont. It also serves Hawkesbury, Ont. Between Coteau and Ottawa, the OCR operates over VIA Rail trackage. Major commodities carried by the OCR include newsprint, salt, forest products, steel wire rod and billets.
- Compagnie de gestion de Matane inc. (COGEMA) COGEMA provides shuttle boat-rail freight service on the St. Lawrence River between Matane and Baie-Comeau, Que., and other ports on the North Shore of the Gulf of St. Lawrence when required. The rail ferry has a capacity of 25 rail cars. CFMG connects with the ferry at Matane and interchanges traffic with CN at Riviere-du-Loup.
CN will invest capital over the next three years to upgrade the rail lines of the acquired properties, and will replace the existing locomotive fleet with more modern motive power.
Post-transaction, it will be "business as usual" under CN ownership, with no immediate changes in freight, VIA Rail passenger rail service or employment levels. The QRC lines being acquired by CN employ approximately 214 persons.
CN will assume the operation and management contract for the Chemin de fer de la Gaspesie, which runs from Matapedia to Gaspe, Que.
Excluded from the transaction are QRC's Sydney Coal Railway Inc. subsidiary in Sydney, N.S., and its Chemin de fer de Charlevoix inc. (CFC) unit running east of Quebec City to Clermont, Que.
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