CN Obtains Resolution Of Labour Issues With Locomotive Engineers In Canada

Source: CN (Press Release)

CN (TSX:CNR) (NYSE:CNI) announces that it received yesterday, and will begin implementing, Arbitrator Andrew Sims' arbitration ruling setting the terms and conditions of a new three-year collective agreement between CN and the Teamsters Canada Rail Conference (TCRC), representing 1,700 locomotive engineers in Canada.

The decision, whose terms are retroactive to January 1, 2009, expires on Dec. 31, 2011. It provides a 1.8 per cent wage increase in 2009, 2.4 per cent in 2010, and 2.6 per cent in 2011, as well as dental plan benefit improvements that come into effect on April 1, 2010.

“With a secure labour agreement in place, we will now work to re-establish a positive dialogue with the TCRC, focusing on issues of common interest for the company, its employees and its customers,” said Claude Mongeau, president and chief executive officer.

Sims was appointed by the federal government in December 2009 to arbitrate the CN-TCRC contract dispute, after the company and union agreed to further negotiations and binding arbitration of wages and benefits if renewed talks failed. The parties' agreement ended a five-day strike by locomotive engineers.

See Also: CN Selects Children's Hospital Foundation Of Manitoba As Community Charity For 2010 CN Canadian Women's Open / CN Announces New $100-million Calgary Logistics Park / Arbitrator To Decide Wage And Benefit Issues For CN Locomotive Engineers / CN Signs Voluntary Mitigation Agreement With The Village Of Plainfield / CN Locomotive Engineers' Strike To End Immediately After Company And Union Reach Agreement / CN Makes New Offer To Locomotive Engineers' Union In An Effort To End The Strike In Canada / Talks Between CN And Locomotive Engineers' Union In Canada Break Off With No Settlement / CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada / CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

Model Train Items: Trainline HO Scale EMD GP-9M Locomotive - Canadian National / Bachmann HO Scale 2-6-0 Mogul Locomotive - Canadian National

CN Selects Children's Hospital Foundation Of Manitoba As Community Charity For 2010 CN Canadian Women's Open

Source: CN (Press Release)

CN (TSX: CNR)(NYSE: CNI) announced today the selection of the Children's Hospital Foundation of Manitoba Inc. as the official charity and beneficiary of the CN Miracle Match program that will accompany the 2010 CN Canadian Women's Open. The golf championship will be held at Winnipeg's St. Charles Country Club Aug. 23-29.

CN Miracle Match will rally the Winnipeg and Manitoba communities to make charitable donations to the Children's Hospital Foundation. Each year since 2006, CN and the Royal Canadian Golf Association (RCGA) have generated funds to support a children's hospital by matching donations made through initiatives associated with the CN Canadian Women's Open. In the past four years, this program has raised more than $3.5 million for children's hospitals.

Michael Cory, CN senior vice-president, Western Region, said: “CN has a major presence in Winnipeg, and we want to help build a safer, stronger community here. One of the best ways we can do that is raising funds to assist the Foundation's mission to improve the health and safety of children. We'll be out there in the community drumming up donations for the Foundation during the tournament and run-up to it. We hope total donations to the 2010 CN Miracle Match in Winnipeg will exceed $1 million, thus allowing our Miracle Match program to top that figure for the third straight year.”

Lesia Sianchuk, executive director of the Children's Hospital Foundation of Manitoba, said: “We are so excited to have the CN Canadian Women's Open in Winnipeg, and to build a strong partnership with the CN organization and their many Manitoban employees. It's going to be an excellent opportunity for our Foundation and community to not only increase support for, but to also enhance child health care and research in Manitoba. ”

“Along with our partners at CN, we believe it is very important that the CN Canadian Women's Open leave a lasting legacy in our local host communities,” said Scott Simmons, RCGA executive director and chief executive officer. “As a national charity program with a philanthropic mandate to raise money for children's hospitals, CN Miracle Match is a terrific initiative that helps to raise charitable proceeds in the name of Canada's National Women's Open Championship.”

See Also: CN Announces New $100-million Calgary Logistics Park / Arbitrator To Decide Wage And Benefit Issues For CN Locomotive Engineers / CN Signs Voluntary Mitigation Agreement With The Village Of Plainfield / CN Locomotive Engineers' Strike To End Immediately After Company And Union Reach Agreement / CN Makes New Offer To Locomotive Engineers' Union In An Effort To End The Strike In Canada / Talks Between CN And Locomotive Engineers' Union In Canada Break Off With No Settlement / CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada / CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

Model Train Items: Trainline HO Scale EMD GP-9M Locomotive - Canadian National / Bachmann HO Scale 2-6-0 Mogul Locomotive - Canadian National

VIA Rail Announces Plans For A New Station In Smiths Falls

Via Rail (Press Release)

Dean Del Mastro, Member of Parliament for Peterborough and Chairman of the All Party Rail Caucus Parliamentary Group, on behalf on Rob Merrifield, Minister of State (Transport), and VIA’s Senior Director, Real Estate, Magdy Fahmy today announced the construction of the town’s new station and rail line upgrading. Made possible by the Government of Canada’s investments of close to $21 million for major rail infrastructure work, the projects will increase and improve the safety, frequency and speed of passenger rail service all along VIA’s busy Toronto-Ottawa route. MP Del Mastro and Senior Director Fahmy were joined at the announcement by Smiths Falls Mayor Dennis Staples and Canadian Pacific (CP) Vice-President of Government Affairs Michael Murphy.

“The Government of Canada understands how important VIA’s rail service is to Smiths Falls and hundreds of other communities and rail travelers across Ontario,” said MP Del Mastro. “By investing in rail services and facilities such as these here in Smiths Falls, we are underlining our commitment to VIA’s capital renewal as a wise way to stimulate economic activity and job creation, contribute to environmental sustainability and improve Canada’s passenger rail system for years to come.”

Senior Director Fahmy added, “These investments will create a passenger rail service second to none. A rail service that is safe, fast and sustainable. A rail service designed for Canadians – in the 21st century. VIA is very pleased that the citizens of Smiths Falls are going to be a part of this new era in rail travel.”

"We're very pleased to work with VIA to implement upgrades to CP's Brockville Subdivision, and thereby help improve passenger rail service on this important segment of the network,” said VP Murphy.

VIA’s new Smiths Falls station will be fully-accessible and located just north of downtown. With its distinctive tower, the new station has been designed to blend harmoniously with the historic character and railway legacy of Smiths Falls. It will provide easy passenger access, ample parking and room for future growth. The new location will also reduce schedule conflicts between VIA passenger and Canadian Pacific freight trains at the old site, which is in the middle of a junction between four busy CP lines and VIA’s Smiths Falls Subdivision to Ottawa. The construction of the new Smiths Falls station is due to be completed at the end of this year.

The rail infrastructure upgrading began recently on CP’s Brockville Subdivision, which is the route of VIA’s heavily-used Toronto-Ottawa trains. The project, scheduled to be completed at the end of 2010, includes two new passing sidings between Smiths Falls and Brockville, a new Centralized Traffic Control signal system, upgraded protection at rail/road grade crossings and strategic sections of safety fencing.

“Smiths Falls’' connection with and affection for the railways goes back to 1859, when the Brockville & Ottawa’s first train steamed into town,” said Mayor Staples. “It brought with it so many opportunities for this town to grow and prosper. I’m convinced these VIA projects can and will do the same today.”

VIA’s Smiths Falls projects are closely linked with other work that is now, or will soon be, underway throughout the Quebec-Windsor Corridor, which generates almost 90% of VIA’s ridership and revenue. Other corridor projects include similar upgrading of the VIA-owned Ottawa-Smiths Falls line and Canadian National’s Montreal-Toronto main line. These projects combined will lead to increases in VIA train safety, frequency and speed.

The construction of VIA’s new Smiths Falls station is part of the $516 million capital program announced by the Government of Canada for VIA Rail in 2007. This investment is stimulating job creation, skills development and private sector activity across the country. Additional infrastructure projects are aimed at improving service quality and cost efficiency at other points across VIA’s coast-to-coast route network.

CN Announces New $100-million Calgary Logistics Park

Source: Canadian National (Press Release)

CN today announced it plans to establish a new $100-million CN Calgary Logistics Park in Conrich, located in Rocky View County north east of Calgary.

The 680-acre park is planned to include a state-of-the-art intermodal terminal with room for customers to co-locate with CN and custom build their facility in place. The Logistics Park will be designed to include a multi commodity transload and warehouse facility, an automotive compound, and a liquid/bulk transload and distribution facility. The site is strategically located a few miles east of the Calgary Airport, on Twp Road 250/ McKnight Boulevard, providing fluid access to Stoney Trail and other major roadways.

“We are very excited about business prospects in Alberta and this investment in the Calgary area,” said Claude Mongeau, CN president and chief executive officer. This facility is part of our program to grow a network of logistics parks that provide seamless and efficient transportation and distribution capabilities for customers, linking their facilities across North America.”

“Combined with CN's superior rail service offering, this is a win-win combination,” said Mongeau.

Calgary is the third largest distribution centre in Canada and is becoming the logistics hub of Western Canada, serving a rapidly expanding market. The new site provides ample space for current and planned customer initiatives, and the park will be designed to allow easy expansion as the Calgary hub continues to grow.

The new CN Logistics Park will offer the potential for a total warehousing footprint of over two million square feet to customers who need to distribute their goods across Western Canada, whether sourced from Asia through the West Coast or coming from eastern Canada and the US. CN provides the fastest rail freight transit time between Eastern and Western Canada, which will allow customers' goods to be on the shelves within three days, a major advantage in managing inventory especially in peak season.

“This is an exciting prospect for Rocky View County and ties in well with our long-term strategic direction,” stated the County's Chief Administrative Officer, Rob Coon. “An investment of this magnitude would bring substantial benefits to both the County and the Calgary regional area.”

This project will be subject to regulatory approval, including a thorough environmental assessment and public consultation. With a scheduled opening expected in 2013, most of CN's Calgary yard operations will shift to the new Logistics Park. CN will also continue to provide quality rail service to customers along its existing lines in the City of Calgary.

Please visit www.cn.ca/calgarypark for a map of the CN Calgary Logistics Park's location.

See Also: Arbitrator To Decide Wage And Benefit Issues For CN Locomotive Engineers / CN Signs Voluntary Mitigation Agreement With The Village Of Plainfield / CN Locomotive Engineers' Strike To End Immediately After Company And Union Reach Agreement / CN Makes New Offer To Locomotive Engineers' Union In An Effort To End The Strike In Canada / Talks Between CN And Locomotive Engineers' Union In Canada Break Off With No Settlement / CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada / CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

Model Train Items: Trainline HO Scale EMD GP-9M Locomotive - Canadian National / Bachmann HO Scale 2-6-0 Mogul Locomotive - Canadian National

Metrolinx Acquires Full Ownership Of Toronto-Barrie Rail Commuter Corridor

Source: CN (Press Release)

Metrolinx today purchased from CN the lower portion of the Newmarket Subdivision in central-north Toronto for C$68 million. The transaction gives Metrolinx end-to-end ownership of the 60-mile-long Barrie-Bradford GO Train corridor between downtown Toronto and Barrie, Ont. – a first for the government transit agency.

Please visit www.cn.ca/newmarket for a map of the Lower Newmarket Subdivision and CN and GO Transit rail networks in the Toronto area.

Metrolinx is the Ontario government Crown corporation responsible for delivering an integrated, multi-modal transportation network in the Greater Toronto Area (GTA), from York and Durham through Toronto, Peel Halton and Hamilton. GO Transit, the operating division of Metrolinx, provides commuter rail and bus services in the GTA.

The Metrolinx line acquisition fills the rail gap between the agency's east-west Union Station Rail Corridor in downtown Toronto, its Weston Subdivision in west-central Toronto, and the northern segment of its commuter rail-line reaching Barrie.

Metrolinx President and Chief Executive Officer J. Robert S. Prichard said: “This transaction marks a milestone for the agency, giving us – for the first time – end-to-end ownership of a GO Transit rail line. This transaction with CN – an important partner of ours -- will permit improvements to service between Toronto and Barrie and points in between. Improved commuter rail and mass transit are vital to easing traffic congestion and air pollution in the GTA, while improving the productivity and economic competitiveness of the region.”

Claude Mongeau, CN executive vice-president and incoming president and chief executive officer, said: “CN is pleased to have reached this sales agreement with Metrolinx. We have close ties with GO – most of its services in the Greater Toronto Area operate over CN's network – and we see our partnership with GO and Metrolinx continuing to drive the environmental benefits of rail in the Toronto region. In addition, this line sale will generate additional value for the company.”

The line acquired by Metrolinx branches off its Weston Subdivision, acquired from CN earlier this year, in west Toronto's Parkdale neighbourhood and runs north past York University to connect with the agency's existing commuter line to Barrie. That line starts immediately north of CN's main east-west freight corridor that parallels Steeles Avenue between Keele and Dufferin streets.

GO currently runs eight commuter trains daily, Monday to Friday, between Toronto and Barrie over the Newmarket Subdivision, which also accommodates a daily CN freight train and VIA Rail Canada Inc.'s transcontinental passenger train three times a week.

Under its sales agreement with Metrolinx, CN will continue to serve five freight customers on the lower Newmarket Subdivision between Highway 401 and CN's main east-west freight corridor.

Rail has a benign environmental footprint, and CN is the green, energy-efficient choice for shippers. Rail has been shown to be up to six times more energy-efficient than heavy trucks, because rail consumes a fraction of the fuel to transport one tonne of freight one kilometre. In fact, we can move one tonne of freight almost 200 kilometres on just one litre of fuel.

The company's innovative Precision Railroading model, and partnership agreements with other railroads to share assets and deliver interchange traffic at the most efficient gateways, have also reduced fuel consumption and emissions.

GO Transit recognizes the decisions we make today will have a major impact on the world we live in tomorrow. Changing attitudes and shifting mindsets are putting the environment at the forefront of GO's plans – both today and in the future. Transit is a clean, sustainable transportation option and GO believes the environment should be a key consideration for future growth strategies and development. Going green is just one of the many ways GO Transit is leading the way, both in the transportation industry and in the eyes of its customers.

See Also: Arbitrator To Decide Wage And Benefit Issues For CN Locomotive Engineers / CN Signs Voluntary Mitigation Agreement With The Village Of Plainfield / CN Locomotive Engineers' Strike To End Immediately After Company And Union Reach Agreement / CN Makes New Offer To Locomotive Engineers' Union In An Effort To End The Strike In Canada / Talks Between CN And Locomotive Engineers' Union In Canada Break Off With No Settlement / CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada / CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

Model Train Items: Trainline HO Scale EMD GP-9M Locomotive - Canadian National / Bachmann HO Scale 2-6-0 Mogul Locomotive - Canadian National

Arbitrator To Decide Wage And Benefit Issues For CN Locomotive Engineers

Source: CN (Press Release)

Unresolved wage and benefits issues for 1,700 CN locomotive engineers in Canada will be submitted to binding arbitration after renewed negotiations between the company and Teamsters Canada Rail Conference (TCRC) ended yesterday without a settlement.

The company and union agreed, as part of the memorandum of settlement that ended the TCRC's strike Dec. 2, 2009, to third-party arbitration of wage and benefits issues if further talks failed to resolve their contractual differences.

The federal Minister of Labour will now appoint an arbitrator, who will have 90 days following his or her appointment to report to the Minister with a final decision on a new collective agreement. Nothing precludes CN or the TCRC from agreeing to further negotiations once the arbitration process starts.

Under the dispute resolution mechanism of the Dec. 2, memorandum of settlement, no further strike action is permitted by the TCRC, nor can CN lockout TCRC members.

Other CN News Articles: CN Signs Voluntary Mitigation Agreement With The Village Of Plainfield / CN Locomotive Engineers' Strike To End Immediately After Company And Union Reach Agreement / CN Makes New Offer To Locomotive Engineers' Union In An Effort To End The Strike In Canada / Talks Between CN And Locomotive Engineers' Union In Canada Break Off With No Settlement / CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada / CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

Model Train Items: Trainline HO Scale EMD GP-9M Locomotive - Canadian National / Bachmann HO Scale 2-6-0 Mogul Locomotive - Canadian National

CN Locomotive Engineers' Strike To End Immediately After Company And Union Reach Agreement

Source: CN (Press Release)

The strike by locomotive engineers at CN (TSX: CNR)(NYSE: CNI) will end immediately as a result of an agreement to resolve the parties' contractual disagreements through further negotiations and, if necessary, binding arbitration. The union began its strike Nov. 28.

E. Hunter Harrison, president and chief executive officer, said: “CN is pleased that an agreement has been reached to end the strike by the Teamsters Canada Rail Conference (TCRC) immediately and to move forward with a process that gives the parties flexibility to negotiate issues further, but also ensures finality through binding arbitration of issues that remain in dispute. We have always sought, since starting negotiations 14 months ago, to achieve a settlement with the TCRC through negotiations or binding arbitration.

“I also thank the many CN employees who have stepped forward during the unfortunate labour dispute to keep the company's freight operations going. Keeping our trains running has been important to our customers and indeed the entire Canadian economy.”

CN and the TCRC have agreed to continue negotiations to resolve all issues related to wages, benefits and work rules. If there is no agreement, the parties' wages and benefits offers will be subject to final, binding arbitration.

The parties can also agree to submit work-rule issues to binding arbitration but only if they mutually agree on the ones that should be subject to arbitration. If there is no agreement, the issues in dispute will not be subject to arbitration.

As part of this process, CN will roll back the monthly mileage cap for locomotive engineers to the previous 3,800 miles from the 4,300-mile cap initiated Nov. 28, and withdraw its plan to apply a 1.5 per cent wage increase to TCRC members. The union's current contract expired on Dec. 31, 2008.

See Also: CN Makes New Offer To Locomotive Engineers' Union In An Effort To End The Strike In Canada / Talks Between CN And Locomotive Engineers' Union In Canada Break Off With No Settlement / CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada / CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

Model Train Items: Trainline HO Scale EMD GP-9M Locomotive - Canadian National / Bachmann HO Scale 2-6-0 Mogul Locomotive - Canadian National

CN Makes New Offer To Locomotive Engineers' Union In An Effort To End The Strike In Canada

Source: CN (Press Release)

In an effort to break the impasse with the Teamsters Canada Rail Conference (TCRC) and end the strike, CN today made a new offer to the TCRC.

Contrary to the TCRC's claim this morning, CN has not seen substantive movement by the union to end the locomotive engineers' strike that started Nov. 28, 2009. Unfortunately, the union persists in raising the same issues the parties have negotiated for 14 months.

In a good faith effort to reach a settlement, CN is offering to:

Agree to binding arbitration on wage and benefit issues, and
Roll-back the 4,300-mile monthly cap for locomotive engineers to 3,800 miles, on the condition that the TCRC withdraws its work-rule demands from the bargaining table.

CN notes the TCRC previously offered to submit the wage portion of the dispute to final and binding arbitration upon successful resolution of the other outstanding issues.

If the TCRC agrees to CN's offer today, the company would be pleased to draft an agreement for resolution of the labour dispute.

See Also: Talks Between CN And Locomotive Engineers' Union In Canada Break Off With No Settlement / CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada / CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

Model Train Items: Trainline HO Scale EMD GP-9M Locomotive - Canadian National / Bachmann HO Scale 2-6-0 Mogul Locomotive - Canadian National

Canadian Pacific Announces Industry-Leading Biodiesel Testing Underway

Source: Canadian Pacific

Canadian Pacific and Natural Resources Canada have partnered on an industry-leading biodiesel fuel pilot project under the National Renewable Diesel Demonstration Initiative, announced Lee Richardson, Member of Parliament for Calgary Centre on behalf of the Honourable Lisa Raitt, Minister of Natural Resources, and Fred Green, Canadian Pacific President and CEO, today. It is the first time biodiesel will be used in Canadian cold-weather rail service.

"The Government of Canada is working closely with industry partners like Canadian Pacific to support the use of renewable diesel in the Canadian fuel market," said Mr. Richardson. "Our Government is investing over $800,000 in this important step forward to help reduce Canada's total greenhouse gas emissions."

The Government of Canada has announced its intent to regulate an average five percent renewable fuel content based on the national gasoline pool by 2010 as well as a requirement for an average two percent renewable content in diesel fuel and heating oil by 2011 or earlier, subject to technical feasibility. The National Renewable Diesel Demonstration Initiative provides an opportunity for real-world testing and performance evaluation in advance of regulatory action.

"Rail is already the most efficient means to move goods long-haul," said Green. "This initiative positions CP to make a lasting impact by further reducing our network's environmental footprint. This partnership with the Government of Canada is an opportunity to test the reliability of biodiesel in cold weather, ensuring we continue to provide safe and efficient operations for customers across North America."

Biodiesel is a cleaner renewable alternative to traditional fuels, made from either vegetable oil or animal fats. Biodiesel reduces emissions of carbon monoxide, carbon dioxide, sulfur dioxide and particulate matter and also acts as a natural lubricant.

As part of the five-month test cycle, CP will operate four GE AC4400 Diesel Locomotives with FDL-16 engines in captive service between Calgary and Edmonton. General Electric and Calgary-based fuel supplier 4Refuels are cooperating with CP during this testing phase, which began in early November and will run through the end of March.

Canadian Pacific will undertake routine detailed mechanical examinations of the locomotives in the pilot project. The information gathered will be used to determine if a biodiesel mixture of five percent (B5) has any significant adverse effects on a locomotive or its associated systems in cold-climate operation. Impact to reliability, potential changes to the overhaul or maintenance work scope and reviews of specific components on the locomotives will also be monitored.

The National Renewable Diesel Demonstration Initiative (NRDDI) supports projects that demonstrate how renewable diesel fuel will perform under Canadian conditions. This research is in support of the Government's intention to regulate renewable fuel content, specifically the proposed requirement for an average of two percent renewable fuel content in diesel fuel and heating oil by 2011 or earlier. This requirement is however conditional upon the technical feasibility of biodiesel use being demonstrated under a range of Canadian conditions. This is a part of the Government of Canada's Renewable Fuels Strategy.

Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America. Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 1,100 communities where we operate. Come and visit us at http://www.cpr.ca/ to see how we can put our ingenuity to work for you. Canadian Pacific is proud to be the official rail freight services provider for the Vancouver 2010 Olympic and Paralympic Winter Games.

Increasing the use of cleaner, renewable energy is an important part of the Government of Canada's comprehensive strategy to reduce emissions of air pollutants and greenhouse gases, helping to protect the health of Canadians and our environment.

The Government of Canada has committed up to $2.2 billion to support an integrated Renewable Fuels Strategy. The ecoENERGY for Biofuels program is a key component of this strategy and will invest up to $1.5 billion to increase the supply and availability of cleaner, renewable fuels such as ethanol and biodiesel. In fact, proposed regulations will require a five percent renewable fuel content based on the national gasoline pool by 2010. The next phase for these proposed regulations will be a requirement for an average two percent renewable content in diesel and heating oil by 2011 or earlier. This requirement is however conditional upon the technical feasibility of biodiesel use being demonstrated under the range of Canadian conditions.

When the two percent mandate is implemented, it is expected that Canada will need close to three billion litres of renewable fuels.

Compared to gasoline, grain-based ethanol can reduce greenhouse gas (GHG) emissions by up to 40 percent on a life-cycle basis. The GHG reduction for biodiesel can be at least 60 percent compared to diesel. Once the five percent and two percent mandates are in place, it is estimated that these regulations, in conjunction with existing provincial regulations, could reduce Canada's annual GHG emissions by four million tonnes.

The objective of the National Renewable Diesel Demonstration Initiative (NRDDI) is to address industry and end-user questions about renewable diesel use by demonstrating how it will perform under Canadian conditions.

Among the questions that have been raised are:

impacts of cold weather;
impacts of long-term storage (with or without temperature fluctuation);
interaction of renewable diesel from various feedstocks with seasonal variations of ultra-low sulphur diesel (ULSD);
impacts on emerging heavy truck engine technology (in particular 2007 and 2010 emission controls);
impacts on engine and heating systems components; and
distribution infrastructure.

These questions will be addressed by providing non-repayable contributions to approved projects that demonstrate aspects of renewable diesel use and/or distribution in Canada. Funded projects may demonstrate one or more of the following:

the use of various blend levels;
the use of fuels produced from various feedstocks;
the use of renewable diesel in various applications that diesel fuel is likely to encounter in Canada; and
the infrastructure for renewable diesel storage and distribution.

Funding has been made available to facilitate demonstration projects of different scales in both the on-road transportation and off-road sectors.

The NRDDI is administered by Natural Resources Canada.

See Also: The Diesel Railroad Locomotive - From Box Cabs And The SD40 To The SD70 And Gensets

Talks Between CN And Locomotive Engineers' Union In Canada Break Off With No Settlement

Source: Canadian National

Negotiations between CN and the Teamsters Canada Rail Conference (TCRC) ended this evening with no agreement on a new labour contract.

CN and the TCRC had resumed negotiations earlier in the day with the assistance of federal mediators in an attempt to reach a settlement. CN now expects the TCRC to strike the company's Canadian operations.

CN said a TCRC strike is particularly unfortunate because CN has repeatedly offered, and the union has refused, to submit the contract disagreements to binding arbitration in order to avoid a labour disruption.

CN said a labour strike at this time is in no one's interest, as it will hurt CN's customers, its employees and the Canadian economy.

CN will implement its labour contingency plan, under which qualified management personnel will work as locomotive engineers. CN is committed to provide the best possible service to its customers in the circumstances and will do so until it can reach a new agreement with the TCRC.
Locomotive engineers will remain on the job in the following CN territories because of separate collective agreements: northern Alberta, parts of northern and eastern Ontario, northern Quebec, and parts of eastern Quebec and New Brunswick.

See Also: CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada / CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

CN Receives Strike Notice From Union Representing Locomotive Engineers In Canada

Source: Canadian National (Press Release)

Company urges Teamsters to work toward settlement to avoid strike threatened for Saturday, Nov. 28

CN today received a 72-hour strike notice from the Teamsters Canada Rail Conference (TCRC) of its plan to strike the company at 0001 hours Nov. 28, 2009.

CN said the TCRC's decision is unfortunate because a strike is in no one's interest – not the locomotive engineers, CN's other employees, its customers or the Canadian economy.

CN is urging the TCRC to resume negotiations immediately to reach a settlement. If that is not possible, CN believes the union should agree to submit issues in dispute to binding arbitration before the Nov. 28 strike deadline.

Such an approach is fully consistent with the TCRC's agreement to binding arbitration to end its strike at VIA Rail Canada Inc. in July 2009. In that dispute, the TCRC asked for two per cent wage increases – the same as CN's last offer to the union.

If the TCRC strikes CN, the company is committed to provide the best possible service to its customers in the circumstances.

On Nov. 23, 2009, CN notified the TCRC of its intention to implement only one work rule change to the collective agreements and increase wages by 1.5 per cent effective Nov. 28, 2009. CN decided to invoke these contractual changes to move the company forward after 14 months of bargaining with no resolution in sight. The TCRC's last contract with CN expired on Dec. 31, 2008.

See Also: CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers / CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

CN To Implement Wage Increase And Milage Cap For It's Canadian Engineers

Source: Canadian National (Press Release)

CN (TSX: CNR)(NYSE: CNI) today gave the Teamsters Canada Rail Conference (TCRC) notice of its plan to increase wage rates and apply a change to the mileage caps for the company's locomotive engineers the union represents in Canada on CN. CN is taking the step after collective bargaining with the TCRC ended Nov. 20 without a settlement. The contract changes are to take effect 0001 hours Nov. 28. The TCRC's current labour agreement with CN expired Dec. 31, 2008.

CN had informed the union over the weekend of its intention to increase the engineers' wages by 1.5 percent and implement only one work rule change. Today, TCRC-represented conductors have a 4,300-mileage cap limitation, and TCRC-represented engineers have a 3,800-mile cap. With this work rule change, both groups of employees working in the locomotive cab will be working under one consistent rule, and the engineers will see an overall increase in their compensation. On average, CN's locomotive engineers presently work between 15 and 17 days per month.

CN regrettably reached an impasse with the TCRC after bargaining in good faith with the union for more than a year, and has decided to invoke these contractual changes to move the company forward. CN has made several different offers to resolve these collective agreements, all of which have been rejected by the TCRC. CN also offered to refer the matters in dispute to binding arbitration, but the TCRC rejected this option as well. CN still prefers to achieve agreements with the TCRC without a labour disruption.

Under terms of the Canada Labour Code, the TCRC and CN are entitled to engage in a strike or lockout upon 72 hours' notice to the other party.

See Also: CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

CN Reaches 20th Voluntary Mitigation Agreement (VMA), Makes Substantial Strides In EJ&E Integration

Source: CN (Press Release)

CN (TSX: CNR)(NYSE: CNI) announced today a voluntary mitigation agreement (VMA) related to its acquisition of the principal lines of the former Elgin, Joliet and Eastern Railway Company (EJ&E) with the Village of Lake Zurich, Ill., located 37 miles northwest of downtown Chicago. With this agreement, CN has VMAs with 20 municipalities that are home to two-thirds of the population living along the EJ&E in Illinois and Indiana.

CN's latest VMA will provide funding for a range of environmental measures, including rail noise mitigation, maintenance of an existing quiet zone, emergency response training, safety initiatives, and improved communication. CN completed its EJ&E acquisition on Jan. 31, 2009, and, while traffic volumes overall remain down owing to general economic conditions, CN has rerouted a limited number of its trains over the line.

Jim Vena, senior vice-president, Southern Region, said: “CN has made substantial strides in dealing with the effects of the EJ&E transaction on communities along the line, as well as in integrating the railroad into our North American network. We have been committed to developing constructive working relationships with communities on the EJ&E, and we have been particularly pleased that so many EJ&E municipalities have been willing to undertake productive VMA negotiations with CN. The current number of VMAs – 20 out 33 communities along the EJ&E – and a series of other measures underscore our commitment to work with municipalities to minimize the transaction's impacts on EJ&E communities and to ensure safe operations.” Such measures include:

A substantial reduction in the number and duration of vehicular delays caused by trains stopped at EJ&E grade crossings for 10 minutes or more;

Creation of a section on CN's website with information about EJ&E construction projects and routine maintenance activities that may affect vehicular traffic;

Community liaison meetings to follow through with voluntary mitigation agreements and regulatory requirements. These meetings have generated positive partnerships with affected communities and solid feedback to the company;

Operation Lifesaver presentations at schools to educate children and teenagers about the importance of rail safety and dangers of rail trespass;

Comprehensive emergency responder training programs offered by CN at its own expense to all communities along the EJ&E, including tank car specialist training at Pueblo, Colo. With this training, the Chicago area possesses as high a concentration of highly-qualified experts as any region on the CN system;

Application of new safety equipment on the EJ&E to monitor rail wheel and bearing conditions, as well as rail lubricators to reduce train noise, and

Advanced planning for the construction over the next few years of key connections that will enhance the fluidity of train movements along the former EJ&E and CN's network in the greater Chicago area.

CN has been very transparent in its implementation of this transaction. In compliance with the Surface Transportation Board's (STB) Dec. 24, 2008, decision approving the EJ&E transaction, CN files monthly operational and quarterly environmental reports at the Board with updates on the status of implementation of the environmental mitigation measures imposed by the agency.

CN has also been actively engaged in a dialogue with EJ&E customers on integration issues and flawlessly cut-over the railway to its computerized operating system that extends the benefits of CN's Precision Railroading model to EJ&E shippers and receivers.

“CN has been working productively with the communities having VMAs with the company to address a broad range of issues, particularly safety,” Vena said. “And we continue to work with communities along the EJ&E that do not have agreements with CN to ensure we implement the safety and environmental conditions required by the STB. We will strive to work cooperatively with all the EJ&E communities and to smoothly implement this transaction, which will enhance transportation efficiency and generate regional environmental benefits.”

CN expects that full integration of the CN and EJ&E networks will be accomplished within three years.

More information on the acquisition, including a map of the areas served by the EJ&E and CN, is available on CN's website.