CN needs more business to keep rail line between Moncton and north New Brunswick

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FREDERICTON - Canadian National Railway (TSX:CNR) says it plans to close a 224-kilometre long section of rail line between Moncton and northern New Brunswick unless new business can be found.

The company and the province have agreed to work together to try to increase freight volumes on the line.

Transportation Minister Claude Williams says the rail line is important for industries in northern New Brunswick.

CN says $50 million also needs to be spent on the line to maintain the service.

CN says it will ensure passenger rail service between Montreal and Moncton can be maintained.

Federal regulations don't allow CN to abandon the line, which stretches between Irvco and Catamount, before March 2014.

Organizations: Canadian National Railway, TSX

Geographic location: Moncton, New Brunswick, FREDERICTON Montreal

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