This morning the Canadian forest products industry received news from one of the nation’s railroads which could only leave them overjoyed:
CN Rail says it will purchase 350 riserless centrebeam lumber cars to meet growing demand for forest products despite lower segment revenues in the first quarter, according to Canadian Press late Wednesday. The new cars will be manufactured by National Steel Car Ltd. at its assembly plant in Hamilton, ON, with deliveries expected to begin in September. CN said it is also looking at an option to purchase or lease an additional 300 cars, which have a maximum load capacity of 129,000 kilograms.
In addition to new rail cars, CN said it expects to take delivery of the first of 60 new GE locomotives next month, and recently said it would acquire 350 additional box cars to meet demand.
For background please see:
CN Rail is spending an extra $700 million this year, half of which will be used to upgrade its network, with the work to be completed by November. It also announced earlier this year that it is hiring 2,000 workers, including hundreds of conductors.
The new-build, 73-foot riserless centrebeams, with a maximum load capacity of 286,000 pounds, are expected to be delivered starting in September, said the company in a press release Wednesday. CN is also looking at an option to purchase or lease an additional 300 cars.