CN Improves Service For Grocery Market By Acquiring 1,000 Domestic Containers

Containers will help CN convert more truck traffic to rail intermodal door-to-door service for Canadian customers such as Kraft and Heinz.

Toronto: CN has acquired more than 1,000 new domestic containers to better serve manufacturers and distributors of grocery and consumer goods in domestic markets across Canada and grow the railway's participation in the segment.

Roughly 80 per cent of the new containers are heated, ensuring year-round quality service for temperature-sensitive goods; the balance of the boxes are standard dry containers.

Jean-Jacques Ruest, executive vice-president and chief marketing officer of CN, says "CN's intermodal service is more cost effective than truck while offering customers truck-like transit times and a lower carbon footprint. CN has established a growing business transporting temperature-sensitive goods in long-haul markets across Canada. Our continued investment in infrastructure will benefit the reliability of the supply chains of our grocery, consumer goods and manufacturing customers. Together, we want to grow with them."

Approximately 540 containers will be used to renew CN's domestic container fleet, while another 520 new containers will increase CN's overall domestic container fleet to almost 6,000 units.

Craig McLaughlin, vice-president, supply chain, for Kraft Canada, says "At Kraft Canada, it is important that we work with suppliers capable of investing in their infrastructure in support of enhancing service and enabling our growth. CN's continuing effort to listen to us as a valued customer and taking action is a key component of the foundation for our strong partnership."

Tim Epplett, supply chain manager - traffic for Heinz Canada, says "Heinz welcomes CN's investment in new heated equipment. This will certainly make load planning easier for us knowing that CN can provide us with more containers to send to our valuable customers during seasons requiring heated equipment."

Jens Grellmann, manager, transportation services for Hopewell Distribution Services Inc., which handles warehousing and distribution for Campbell Company of Canada, says "CN's acquisition of a significant number of additional containers, specifically heated equipment, will help our supply chain. The new containers will improve equipment supply, allow us to achieve many of our cost-saving initiatives and generate growth opportunities for both companies."

CN's domestic intermodal business is focused on delivering truck-competitive, cost-effective service. CN Intermodal offers shippers an approximate 24-hour rail advantage from central Canada to Western Canada. At the same time, CN Intermodal is competitive with single-truck-driver service between central Canada and Winnipeg, Calgary, Edmonton and Vancouver markets. Additionally, CN offers the only rail service option from Montreal to Halifax.

Ruest says "CN is committed to working with its customers to improve the efficiency of their supply chains. Through investment, innovation and collaboration, CN seeks to help its customers compete better in their end markets and to share in the success of their growing businesses."