MONTREAL (April 15) — Canada’s largest railway will shake up its management structure in advance of its $2.4-billion buyout of Illinois Central Corp.

Canadian National said the reorganization will centralize administrative functions such as finance and marketing while giving regional managers more control over operations and sales.

The company will align itself as five geographic divisions: Eastern Canada (based in Toronto), Prairie (Winnipeg), Pacific (Vancouver), Midwest (Chicago), and Gulf (Jackson, Miss.). Each will be responsible for local sales, operations of yards, terminals, local switching and joint facilities, along with the maintenance of infrastructure and equipment.

New divisional account managers will sell all CN products, align their activities with operations, expand local accounts, and find new customers.

A single network operations centre will be established in Edmonton.

The moves are effective May 1 in Canada and July 1 in the United States.

The changes affect about 2500 management staff and will require some to relocate, CN said.

“The new organization will produce a strong, North American network benefiting from centralized strategic leadership and standards, as well as economies of scale,” said CN chief executive Paul Tellier.

“At the same time it will empower field-level managers and new divisional sales forces, giving them greater autonomy to serve shippers and to respond to local market opportunities. Importantly, more officers will have expense and revenue management responsibilities.”

CN’s merger with IC, approved by U.S. regulators last month, will create North America’s fifth-largest railway, with transcontinental coverage and north-south service from Canada to Mexico.