Against the odds: MSC joins the sea-rail gold rush where opportunity knocks
Check out the cool Asia-Europe sea-rail upside.
Rail operator Canadian National (CN) has acquired Winnipeg-based haulier TransX Group for an undisclosed price, as it looks to increase its intermodal operations.
CN said TransX would continue to operate independently but would provide access to 1,500 trucks and 1,000 intermodal containers across its 12 North American hubs.
CN CEO JJ Ruest said: “This allows us to deepen our supply chain focus, strengthening our franchise, including intermodal business, notably the fast-growing refrigerated segment.
“This alignment creates a solid framework to serve a growing consumer economy with transportation options that bring more supply chain flexibility to our customers.”
Chief operating officer of TransX Mike Jones said the move would “solidify” the company’s future and help it grow.
Senior VP for consumer products and supply chain growth Keith Reardon added: “CN has worked alongside TransX for many years as a supply chain partner and we know the emphasis it places on safety and the customer’s experience.
“Understanding each other’s culture makes the opportunities of this acquisition exciting, and wide-ranging.”
CN reported an 8% upturn in nine-month revenue (to US$8bn) this month, which generated some $2.4bn in profit (up 10%), despite a 24% increase in fuel costs.
“We continue to see strong opportunities across multiple rail commodities and new supply chain services,” said Mr Ruest. “The balance of our expansion projects remains on track for completion before winter.”
The terms of the TransX acquisition were not disclosed and it is subject to regulatory review by Competition Bureau Canada and the Ministry of Transportation.