Canadian National Railway
) is expediting its upgrading project of the Whitehall
Subdivision, worth US$33 million, in Wisconsin.
The company plans to uplift the rail track stretch covering 74
miles of the Whitehall Subdivision between Wisconsin Rapids and
Blair, Wis. within a span of three year instead of four, keeping
customer benefits in mind. Starting in 2012, the work is slated
to be fully completed by Dec 2014.
This project will aid in transporting heavier loaded frac sand
freight cars with a maximum weight of 286,000 pounds. With a rise
in volume per car, there will be better productivity for customer
car fleets and faster train pace.
Following the enhancement, the car-loading space and train speed
for the growing frac sand supply chains of clients - Badger
Mining Corporation, Preferred Sands of Wisconsin LLC, Atlas Resin
Proppants LLC, and Taylor Frac LLC - are expected to improve.
Goods transportation via rails is gaining popularity among
companies for its capacity to move large volumes safely within
shorter transit times, creating cost efficiencies. Canadian
National is looking forward to tap this opportunity and offer its
clients a more well-integrated, better designed and upgraded
transportation platform that will enable them to reach markets
far and wide, economically and on time.
We appreciate Canadian National's focus on developing the rail
road in the Whitehall Subdivision to accelerate the movement of
frac sand that is amply utilized in the oil and gas industry.
This action is expected to improve the supply chain connectivity
between the customers of the company in Wisconsin and the oil and
gas shale basins in North America.
Canadian National - which operates in the North American sector
along with railway companies such as
Canadian Pacific Railway Limited
Union Pacific Corporation
) - carries a Zacks Rank #3 (Hold).
We believe Canadian National is well poised to reap benefits from
improving demand and pricing trends. The company's
industry-leading operating ratio, service improvements and
expected growth across the board, particularly in Intermodal,
Metals and Minerals and Automotive, bode well for its projected
earnings growth over the next few months.
CDN NATL RY CO (CNI): Free Stock Analysis
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