CN and CSX sign haulage deal for Sarnia, Ont. freight

MONTREAL — CN Rail and CSX Transportation of Florida have agreed to a long-term haulage agreement that will see the Canadian rail carrier haul CSXT traffic to and from Sarnia, Ont., and connections in Buffalo, N.Y., and Toledo, Ohio.

“Under this agreement, CSXT will retain a vital commercial presence in Sarnia — a major petrochemical production region — while using CN’s trains and network for efficient long-haul transportation of our Sarnia traffic to the rest of the CSXT network in the United States,” CSXT vice-president chemicals and fertilizer Dean Piacente said in a release.

The new arrangement will create better service and faster transit times compared to a previous circuitous route via Chatham, Ont., Windsor, Detroit, Plymouth, Mich., and Toledo.

CN will also transport long-haul CSXT traffic destined for Canadian Pacific Railway Ltd. to London, Ont., for interchange with CPR.

CSXT plans to discontinue about 42 km of track between Wallaceburg and Chatham in Ontario. CN will purchase 20 km of CSXT track between Chatham and Blenheim, Ont., acquiring control of trackage connecting CN’s network to its Windsor classification yards and the Detroit-Windsor rail tunnel.

Meanwhile, CN and CP said they have struck a deal to handle each other’s traffic in B.C.’s Lower Mainland in a bid to relieve some of the bottleneck at the Port of Vancouver as Asian trade continues to grow.