Hamilton

Hamilton's National Steel Car awarded $150M contract with Canadian National Railway

Canadian National Railway Co. has awarded a contract for 1,150 grain cars to National Steel Car Ltd. in Hamilton.

National Steel Car will build 1,150 grain hopper cars for CN

CN will have National Steel Car build 1,150 grain hopper cars while it also invests money into a logistics hub in Milton, Ont. (Jeff McIntosh/The Canadian Press)

Canadian National Railway Co. has awarded a contract for 1,150 grain cars to National Steel Car Ltd. in Hamilton.

The railroad operator says the deal brings to $1 billion the amount it plans to invest in Ontario by the end of 2022, including $250 million to build a proposed logistics hub in Milton.

The order for the high-efficiency hopper cars comes amid a year of record grain movement at both CN and rival Canadian Pacific Railway Ltd.

The surging statistics are thanks largely to grain held over from last year following a late harvest as well as insatiable global demand for bread and pasta amid the COVID-19 pandemic.

CN said earlier this month it hauled more than 30 million tonnes of grain in 2019-20, a seven-per-cent increase from the previous year.

CP moved 10 per cent more grain, at 29.5 million tonnes.

The deals received praise from federal Transport Minister Mark Garneau.

"CN's commitment to purchase new generation grain hopper cars will benefit the entire freight system, and provide a significant economic boost to Canada's recovering economy," Garneau said.

 

With files from CBC News

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