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Press release from CNW Group

CN improves service for grocery and consumer goods market with acquisition of 1,000-plus domestic containers

Monday, April 11, 2011

CN improves service for grocery and consumer goods market with acquisition of 1,000-plus domestic containers10:00 EDT Monday, April 11, 2011New containers will help CN convert more truck traffic to rail intermodal door-to-door serviceTORONTO, April 11 /CNW Telbec/ - CN (TSX: CNR) (NYSE: CNI) announced today the acquisition of more than 1,000 new domestic containers to better serve manufacturers and distributors of grocery and consumer goods in domestic markets across Canada and grow the railway's participation in the segment.Roughly 80 per cent of the new containers are heated, ensuring year-round quality service for temperature-sensitive goods; the balance of the boxes are standard dry containers.Jean-Jacques Ruest, executive vice-president and chief marketing officer of CN, said: "CN's intermodal service is more cost effective than truck while offering customers truck-like transit times and a lower carbon footprint. CN has established a growing business transporting temperature-sensitive goods in long-haul markets across Canada. Our continued investment in infrastructure will benefit the reliability of the supply chains of our grocery, consumer goods and manufacturing customers. Together, we want to grow with them."Approximately 540 containers will be used to renew CN's domestic container fleet, while another 520 new containers will increase CN's overall domestic container fleet to almost 6,000 units.Craig McLaughlin, vice-president, supply chain, for Kraft Canada, said: "At Kraft Canada, it is important that we work with suppliers capable of investing in their infrastructure in support of enhancing service and enabling our growth. CN's continuing effort to listen to us as a valued customer and taking action is a key component of the foundation for our strong partnership."Tim Epplett, supply chain manager - traffic for Heinz Canada, said: "Heinz welcomes CN's investment in new heated equipment. This will certainly make load planning easier for us knowing that CN can provide us with more containers to send to our valuable customers during seasons requiring heated equipment."Jens Grellmann, manager, transportation services for Hopewell Distribution Services Inc., which handles warehousing and distribution for Campbell Company of Canada, said: "CN's acquisition of a significant number of additional containers, specifically heated equipment, will help our supply chain. The new containers will improve equipment supply, allow us to achieve many of our cost-saving initiatives and generate growth opportunities for both companies."CN's domestic intermodal business is focused on delivering truck-competitive, cost-effective service. CN Intermodal offers shippers an approximate 24-hour rail advantage from central Canada to Western Canada. At the same time, CN Intermodal is competitive with single-truck-driver service between central Canada and Winnipeg, Calgary, Edmonton and Vancouver markets. Additionally, CN offers the only rail service option from Montreal to Halifax.Ruest said: "CN is committed to working with its customers to improve the efficiency of their supply chains. Through investment, innovation and collaboration, CN seeks to help its customers compete better in their end markets and to share in the success of their growing businesses."Forward-Looking StatementsCertain 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 of 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 factors that could affect the above 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.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. For more information on CN, visit the company's website at www.cn.ca.Northfield, Ill.-based Kraft Foods Inc. (NYSE: KFT) is a global snacks powerhouse with an unrivaled portfolio of brands people love. Proudly marketing delicious biscuits, confectionery, beverages, cheese, grocery products and convenient meals in approximately 170 countries, Kraft Foods had 2010 revenue of $49.2 billion, more than half of which was earned outside North America. Eleven of the company's iconic brands - including Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oreo, Oscar Mayer, Philadelphia and Trident - generate revenue of more than $1 billion annually, and 40 have been loved for more than a century. A leader in innovation, marketing, health & wellness and sustainability, Kraft Foods is a member of the Dow Jones Industrial Average, Standard & Poor's 500, Dow Jones Sustainability Index and Ethibel Sustainability Index. For more information, visit www.kraftfoodscompany.com and www.facebook.com/kraftfoodscorporate. In Canada, company brands include Kraft Dinner macaroni and cheese, Christie cookies and crackers, Kool-Aid and Del Monte beverages, Caramilk chocolate, Maynards candy, and Stride and Dentyne gum.Established over 100 years ago in 1909, Heinz Canada is the leading processor and marketer of high-quality ketchup and condiments, infant foods, pasta sauces, canned beans and pasta, and specialty sauces and salad dressings through all retail and foodservice channels. With a host of favourite brands, including Heinz(R), Chef Francisco(R), Richardson(R), Classico(R), Bagel Bites(R), HP Sauce(R), Lea & Perrins(R), Renée's Gourmet(R), Diana(R), Arthur's Fresh(R), and Weight Watchers(R)* Smart Ones(R), Heinz Canada employs more than 1,200 people across the country. Heinz Canada is a division of the H.J. Heinz Company (NYSE: HNZ) based in Pittsburgh, Pa. For more information about Heinz Canada products, please visit our websites: Heinz.com; Foodservice.heinz.ca and Heinzitup.com. * Weight Watchers on foods and beverages is the registered trademark of WW Foods, LLC and is used under license.Hopewell Distribution Services's supply chain services group was established in 1996 with the vision of creating campus style distribution centers offering a blend of physical distribution services, information management services, logistics support services and facility development services designed specifically for manufacturers of packaged consumer goods who wish to maximize the efficiency of their distribution networks. The company has grown from a cold start in 1996 to design, build and operate approximately 1.6 million square feet in Brampton, Ont., where it now offers national distribution packages to many common household consumer brands. In addition to its Brampton Distribution Campus, Hopewell also operates in Calgary, Alta., and Vancouver, B.C.For further information: Contacts for CN: Media: Mark Hallman, Director, Communications & Public affairs, (905) 669-3384; Investors: Robert Noorigan, Vice President, Investor Relations, (514) 399-0052; Contacts for Kraft Canada: Lynne Galia, Corporate Affairs, (416) 441-5610; Contacts for Heinz Company: Joan Patterson, Corporate Affairs Leader, (416) 226-7587; Contacts for Hopewell Distribution Services: Jens Grellmann, Transportation Manager, (905) 789-3622