CN Rail to purchase 350 lumber cars to meet demand
Canadian National Rail (CN Rail) has announced that it will be purchasing 350 new lumber cars in order to meet the growing demand across North America within the industry.
The lumber cars will be provided by National Steel Car Ltd. who will manufacture them in its Hamilton, Ontario-based assembly plant.
“This order will result in the hiring of over 250 employees at our Hamilton assembly plant, which currently employs more than 1,500 people, and will provide extended benefits for Hamilton and the Canadian economy,” said Gregory J Aziz, Chairman and Chief Executive Officer of National Steel Car Limited.
The new cars will have a maximum load capacity of 286,000 pounds, with CN Rail exploring the option of leasing an additional 300 cars to further improve the supply chain in one of Canada’s leading national markets.
“We are investing to move the economy as we put the rolling stock, infrastructure and people in place to serve the growing needs of our valued customers,” said JJ Ruest, interim President and Chief Executive Officer of CN. “CN needs to and will do better moving lumber to market.”
The purchase is part of CN Rail’s wider $3.4bn capital program for 2018, where the company is looking to invest heavily in new infrastructure and equipment.
The delivery of the cars is forecast to begin in September.