CN and Specialty-Grain Exporter Agri-Food Central Ltd. Reach Supply Chain Collaboration and Continuous Improvement Agreement

Oct 20, 2011 | Corporate Member News

CN (TSX: CNR) (NYSE: CNI) and Agri-Food Central Ltd. announced today an agreement to improve the service delivery performance and consistency of the supply chain for specialty grains moving from Western Canada to Mexico via rail and to other markets including those in Latin America through Atlantic, Pacific and Gulf coast ports served by CN.

Under the agreement, CN and Agri-Food Central have agreed to exchange information that will allow the parties to jointly measure rail service and supply chain performance, to cooperate on joint supply chain planning, and establish a process to address any rail service issues.

Doug MacDonald, CN vice-president, Corporate Marketing, said: “CN continues to sign agreements with customers who are interested in working with us to develop better supply chains that increase end-customer satisfaction.”

David Nyznyk, director of supply chain management for Agri-Food Central, said: “We have developed a close relationship with CN, which is well positioned to serve our needs in reaching export markets for our specialty grains. This supply chain collaboration and continuous improvement agreement with CN will enhance our competitiveness as we grow our penetration of foreign markets.”

Agri-Food Central loads bags of lentils, canary seed, flax and peas into 53-foot containers at CN’s Winnipeg Intermodal Terminal. CN then hauls the containers by rail to Montreal, Vancouver and New Orleans for export, as well as to Mexico in cooperation with Kansas City Southern (KCS). Containers are interchanged with KCS at Jackson, Miss., and return from Mexico loaded with consumer goods.

MacDonald added: “CN is signing a series of supply chain collaboration agreements that are key to encouraging all stakeholders to achieve improved service levels as well as greater productivity and efficiency. We believe this commercial approach is the right way to move distribution services to the next level.”

Forward-Looking Statements

Certain information included in this news release constitutes “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. CN cautions that, by their nature, these forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company or the rail industry to be materially different from the outlook or any future results or performance implied by such statements.

Important risk factors that could affect the forward-looking statements include, but are not limited to, the effects of general economic and business conditions, industry competition, inflation, currency and interest rate fluctuations, changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and regulations, actions by regulators, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims, uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from derailments, and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to “Management’s Discussion and Analysis” in CN’s annual and interim reports, Annual Information Form and Form 40-F filed with Canadian and U.S. securities regulators, available on CN’s website, for a summary of major risks.

CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related maters, or any other forward-looking statement.

About Agri-Food Central

Agri-Food Central, headquartered in Winnipeg, Man., is a supply chain management company whose clients range from primary suppliers to international buyers looking to vertically integrate and improve their existing supply chains. The Company coordinates packaging of agri-food products in Canada and Mexico, and further adds value to agri-food products by reducing – and in some cases removing – risks for clients, including quality, market price, currency and delivery. In Canada, Agri-Food’s Winnipeg Distribution Terminal is strategically located at CN’s Intermodal Terminal. In Mexico, the Company has its own fleet of ocean-going containers and cleaning equipment for re-conditioning of grains and seeds as needed.

About CN

CN – Canadian National Railway Company and its operating railway subsidiaries – spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America.

Contacts

For CN  
Media

Mark Hallman
Director
Communications and Public Affairs
Phone: 905-669-3384
Email Mark

Investment Community

Robert Noorigian
Vice-president
Investor Relations
Phone: 514-399-0052
Email Robert

For Agri-Food Central  
David Nyznyk, CITT
Director
Supply Chain Management
Phone: (204) 478-1612
http://www.cn.ca/en/www.agrifoodcentral.com
 

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