RSI Logistics, Inc. - Industry Update

CN distributed the following announcement on September 26, 2007:

I am pleased to inform you that CN and United States Steel Corporation (U.S. Steel) announced today that our respective Boards of Directors have reached an agreement under which CN will acquire the major portion of the Elgin, Joliet and Eastern Railway Company (EJ&E) for US $300 million, while U.S. Steel’s Transtar subsidiary will retain the railroad assets, equipment, and employees that directly serve the steel making operations of U.S. Steel and other companies at Gary Works in Northwest Indiana.

As you can see by linking to the map, this acquisition is a natural fit into CN’s operations. EJ&E, a Class II railroad, operates over 198 main line miles of track encircling the City of Chicago from Waukegan, Ill., on the north, to Joliet, Ill., on the west, to Gary, Ind., on the southeast, and then to South Chicago.

The acquisition will bridge what has been the missing link to connect the Eastern, Western, and Southern regions of CN’s network, and will significantly improve the fluidity of CN’s rail operations in the Chicago region, rewarding customers with faster transit times and more reliable service. Chicago is a key rail hub, but congestion currently presents major operational challenges for CN. Moving trains out of downtown to EJ&E lines on the outskirts of the Chicago metropolitan area, combined with CN’s planned investments in infrastructure improvements and new capacity, will enhance CN’s ability to serve customers and streamline rail operations.

The transaction is subject to regulatory review by the U.S. Surface Transportation Board (STB). Both CN and U. S. Steel believe that if the application is approved by the STB as filed, it should allow closing in mid-2008.

This is good news for CN, EJ&E and our customers. In addition to driving new efficiencies and operating improvements on CN’s network, the acquisition will enable us to expand service to the North American steel industry.

Sincerely

James M. Foote
Executive Vice-President
Sales and Marketing

CN website
Map

RSI LOGISTICS
RSI Logistics, Inc. - Industry Update
RSI Logistics Home Page Industry Updates CN to Acquire a Major Portion of the EJ&E - (9/26/07) CN distributed the following announcement on September 26, 2007: I am pleased to inform you that CN and United States Steel Corporation (U.S. Steel) announced today that our respective Boards of Directors have reached an agreement under which CN will acquire the major portion of the Elgin, Joliet and Eastern Railway Company (EJ&E) for US $300 million, while U.S. Steel’s Transtar subsidiary will retain the railroad assets, equipment, and employees that directly serve the steel making operations of U.S. Steel and other companies at Gary Works in Northwest Indiana. As you can see by linking to the map, this acquisition is a natural fit into CN’s operations. EJ&E, a Class II railroad, operates over 198 main line miles of track encircling the City of Chicago from Waukegan, Ill., on the north, to Joliet, Ill., on the west, to Gary, Ind., on the southeast, and then to South Chicago. The acquisition will bridge what has been the missing link to connect the Eastern, Western, and Southern regions of CN’s network, and will significantly improve the fluidity of CN’s rail operations in the Chicago region, rewarding customers with faster transit times and more reliable service. Chicago is a key rail hub, but congestion currently presents major operational challenges for CN. Moving trains out of downtown to EJ&E lines on the outskirts of the Chicago metropolitan area, combined with CN’s planned investments in infrastructure improvements and new capacity, will enhance CN’s ability to serve customers and streamline rail operations. The transaction is subject to regulatory review by the U.S. Surface Transportation Board (STB). Both CN and U. S. Steel believe that if the application is approved by the STB as filed, it should allow closing in mid-2008. This is good news for CN, EJ&E and our customers. In addition to driving new efficiencies and operating improvements on CN’s network, the acquisition will enable us to expand service to the North American steel industry. Sincerely James M. Foote Executive Vice-President Sales and Marketing CN website Map