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CN, BNSF strike wide-ranging interline deal

MONTREAL (Nov. 20, 2000) -- Canadian National Railway and Burlington Northern Santa Fe Corp., which abandoned a merger agreement earlier this year, will implement interline rail services for new carload business.

The companies said their first initiative will link markets in British Columbia, Alberta, and Saskatchewan with markets in Washington, Oregon, Idaho, California, Nevada, Utah, Arizona, New Mexico, and El Paso-Sierra Blanca, Texas.

The marketing agreement gives the two railroads authority to market and price carload traffic originating on one carrier and terminating on the other without first having to negotiate the terms and conditions of the movement.

The agreement provides BNSF the opportunity to "through" price traffic originating on BNSF to points served by CN, and provides CN the opportunity to "through" price traffic originating on CN to points served by BNSF.

The pricing authority contained in the agreement includes short lines where pricing and marketing are performed by either BNSF or CN as connecting carriers -- so-called "handling carrier" short lines.

The companies are contemplating new carload interline services in other corridors.

In July, Canadian National and Burlington Northern called off their proposed merger, citing a possible 2-1/2-year wait for U.S. regulatory approval.

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