CN Rail plan to buy ONRail derailed
MONTREAL, (June 4, 2003) — Canadian National Railway announced earlier this week that it has scrapped its plan to acquire ONRail, a province-owned railway serving Northern Ontario, because of job guarantees demanded by the Ontario government.
“We believe this failed privatization is a missed opportunity for rail freight shippers and passengers of Northeastern Ontario, and for Ontario taxpayers who heavily subsidize ONRail operations,” CN Executive Vice-president Claude Mongeau said in press release.
CN entered exclusive negotiations to acquire ONRail in October 2002 after Jim Wilson, Ontario minister of northern development and mines, announced that the Ontario Northland Transportation Commission’s directors had concluded CN’s plan for ONRail best met the commission’s objectives of job protection, economic development and improved freight and passenger services.
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