National Steel Car wins contract for rail cars
Published: October 10th 2008
Source: Hamilton Spectator
National Steel Car has a won a contract to build 232 rail cars for
Canadian National Railway Co.
CN announced plans yesterday to buy the new rapid-discharge cars and refurbish 500 existing cars as it upgrades its iron ore fleet in the northern U.S. Midwest. The railway did not release the cost of the program in a statement from Duluth, Minn.
National Steel Car also declined to share the value of their portion of the deal. Steel Car's Kenilworth Avenue North plant built 6,000 rail cars last year, but has the capacity to produce twice that amount.
Delivery of the new cars is to begin in January, allowing CN to retire the same number of old cars from its 2,200-car fleet.
CN carries iron ore from three mines in northern Minnesota and one in northern Michigan, mainly to Great Lakes ports for transport to North American steel mills.