October 20, 2003

Canadian railroad CN is to acquire Great Lakes Fleet, Inc., which operates a fleet of eight U.S.-flag Great Lakes bulkers, homeported in Duluth, Minn.

CN is getting the fleet , along with the rest of the railroad and related holdings of Great Lakes Transportation LLC (GLT) for US$380 million. CNsays the transaction will improve its NAFTA rail link between Western Canada and Chicago and expand its role in the transportation of bulk commodities for the U.S. steel industry.

Under the transaction, CN will acquire two small railroads, a switching company, and the Great Lakes vessels from Monroeville, Pa.-based GLT, a company controlled by The Blackstone Group.

The transaction is subject to a determination by the U.S. Surface Transportation Board (STB) that it is a minor one under the STB's merger rules and, ultimately, STB approval. Reviews by the U.S. Maritime Administration and Coast Guard are required for CN's acquisition of Great Lakes Fleet. Review of CN's acquisition of Great Lakes Fleet by the U.S. Federal Trade Commission and the Department of Justice Antitrust Division is also required.