[R-G] CN buys key rail link to Alberta's oilsands

[Richard Menec]

[Here's a key link to developing th oilsands, and conversely, a key point to 
organize around in terms of stopping it.  Don't you just love being a 
Canadian taxpayer?]

http://www.cbc.ca/canada/edmonton/story/2007/12/24/cn-athabasca.html

CN buys key rail link to Alberta's oilsands

Last Updated: Monday, December 24, 2007 | 1:05 PM MT

The Canadian Press

Canadian National Railway Co. has signed a deal to buy the Athabasca 
Northern Railway Ltd., a key railway link to the oilsands region of northern 
Alberta.

CN said Monday it will pay $25 million for the railway and will invest $135 
million in upgrades over three years to improve transit times and service 
consistency.

"CN's investment and partnership agreements with key shippers will allow the 
parties to maintain important rail service to Lynton, Alta., a point near 
Fort McMurray, home of existing and future oil sands development," CEO 
Hunter Harrison said in a statement.

"While Athabasca Northern's current traffic volumes are too low to keep it 
going as a stand-alone operation, we and our shipper partners see the 
Athabasca Northern playing a critical role in one of the world's largest 
construction projects."

The purchase and upgrade plans are premised on long-term traffic volume 
guarantees that the company has negotiated with Suncor Energy Inc., OPTI 
Canada Inc. and Nexen Inc., the company said.

"Suncor has a long history with the Athabasca Northern and, with this 
announcement, we're looking forward to the line's future with upgraded 
operations," says Mike Ashar, Suncor executive vice-president.

The 325-kilometre Athabasca Northern connects with CN at Boyle, Alta., about 
160 kilometres north of Edmonton.

CN said it plans upgraded rail, ties, bridges and new ballast to allow 
greater volumes of northbound shipments of construction materials and 
machinery to support oilsands development.

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