CN and CSX Transportation, Inc., (CSXT) have announced a long-term agreement for CN to haul CSXT traffic to and from Sarnia, Ont., and CSXT connections in Buffalo, N.Y., and Toledo, Ohio.

Dean Piacente, vice president-chemicals and fertilizer for CSXT, said: "Under this agreement, CSXT will retain a vital commercial presence in Sarnia - a major petrochemical production region - while using CN's trains and network for efficient long-haul transportation of our Sarnia traffic to the rest of the CSXT network in the United States. CSXT's important Sarnia customers will see better service and faster transit times via CN, compared with the more circuitous routing their traffic now takes via Chatham, Ont., Windsor, Detroit, Plymouth, Mich., and Toledo."

Keith Creel, senior vice-president of CN's Eastern Canada Region, said: "CN is pleased with this haulage agreement with CSXT. The CSXT traffic will be a welcome addition to our network in Ontario, Michigan and Ohio, increasing freight densities and improving economies of scale. CN has the crews, locomotives and routes to provide solid, time-sensitive service to CSXT and its Sarnia customers. And we'll deliver on that promise."

CN will also transport long-haul CSXT traffic destined for Canadian Pacific Railway Ltd. (CPR) to London, Ont., for interchange with CPR, improving transit times for CPR. This traffic is currently interchanged between CSXT and CPR at Chatham.

CSXT will retain track and continue to serve its customers in Sarnia, and maintain operations on 27 miles of its line between Sarnia and Wallaceburg, Ont. CSXT plans to discontinue about 26 miles of track between Wallaceburg and Chatham in accordance with the Canada Transportation Act.

CN will purchase 12.5 miles of CSXT track between Chatham and Blenheim, Ont., acquiring control of trackage connecting CN's network to its Windsor classification yards and the Detroit-Windsor rail tunnel.

Implementation of the agreement is scheduled for Jan. 31, 2006.