CN BUYS NORTHWESTERN ALBERTA SHORTLINE: CN announced today the purchase of Savage Alberta Railway, Inc. (SAR), a 345-mile short-line railway, from Savage Companies of Salt Lake City, Utah, for C$25 million. The acquisition represents an opportunity for CN to solidify its freight franchise in resource-rich northwestern Alberta. The SAR transported about 35,000 carloads of freight last year. CN will upgrade the shortline’s track to improve operations and customer service, and to maximize its potential for transporting greater volumes of coal, grain and forest products. The SAR’s primary connection with CN is at Swan Landing, Alta., located approximately 38 miles northeast of Jasper. From there the SAR runs north to Grande Prairie, the current base of operations, where one branch runs west to a connection with CN at Hythe, Alta., and another branch runs northeast to Wanham, Alta. CN began operating the line today, following the close of the transaction with Savage Companies. CN is offering employment to SAR’s approximately 75 employees and will honour the existing collective labour agreement at SAR. (CN - posted 12/01)
Its kinda funny you know…CN will tell you it costs about a million dollars a mile to lay down new rail on an existing route…the biggest portion of that cost is the steel rail itself. Buy a line from them and see how much you pay. Yet when they buy a line from another company, they don’t see to use the same math to hand money over to the seller.
$25 mill / 345 mile = $72,465 per mile.
Either that rail is worn right out (they do say they have to upgrade it), or they were able to keep the money close to their chest. I believe that is a line CN used to own originally…wonder what they sold it for?