VANCOUVER, (July 5, 2004) — Canadian National Railway plans to close the $1 billion transaction for BC Rail this months after reaching a consent agreement with Canada’s Competition Bureau.

CN agreed last November to pay $1 billion to the province of B.C. for shares in the railway and the right to operate over BC Rail’s roadbed under a long-term lease.BC Rail’s rail bed will continue to be owned by the province, with CN assuming responsibility for rail transportation and infrastructure maintenance.

In a news release, CN said the consent agreement builds on its promise to share merger efficiencies with BC Rail shippers and assure them competitive transportation options. Shippers will be able to choose CN to reach markets, or they can route traffic over BC Rail to connecting railways at the Vancouver gateway “at lower rates and with better service than exist today on BC Rail.” CN said it has negotiated agreements with three connecting railroads at Vancouver — Canadian Pacific, Burlington Northern Santa Fe and Union Pacific.

The consent agreement will also maintain competitive rates and service for grain shippers in the Peace River region, the company said.

— from Dow Jones Newswire