Canadian National Railway Company
) co-partnered with Indiana Rail Road Company (INRD) to set up an
intermodal terminal in Indianapolis.
Located near INRD's existing Senate Avenue Terminal, the new unit
is in downtown Indianapolis and adjacent to Lucas Oil Stadium.
The terminal, which will also have a container yard as well as
agricultural products export loading platform, is currently being
constructed and is scheduled to be operational from June, this
year. The facility will provide importers and exporters of the
state of Indiana with an all rail transportation option for
products moving to and coming from Asia in crates.
According to Canadian National Railway, this all rail service
will benefit Indiana importers by cutting down the transit times
and offering consistent transportation, leading to smooth supply
chains connectivity. The imported goods from China and Korea are
expected to arrive at the Senate Avenue Terminal within 18-20
days via this new service unit.
Privately held INRD stated that this direct-west coast intermodal
service will clear much of the bottleneck that importers faced in
the past and will offer steady, regular and environmentally
friendly hauling of cargo.
Montreal, Canada based Canadian National Railway is in constant
attempt to improve its railroading (velocity, reliability, lowers
costs and asset utilization) standards. The company plans to
invest over $1 billion towards track and infrastructure
improvement as well as productivity initiatives.
Recently, the company initiated operations at Calgary Logistics
Park with the opening of a new intermodal terminal. Through this
new intermodal service, the park is made available for shipping
consumer as well as industrial products.
Despite these positive actions on the part of the company, we
maintain our long-term Neutral recommendation on the stock,
keeping in view the sluggish economic conditions and stiff
competition from peers such as
Canadian Pacific Railway
). The stock currently retains a Zacks Rank #3 (Hold).
CDN NATL RY CO (CNI): Free Stock Analysis
CDN PAC RLWY (CP): Free Stock Analysis Report
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