CN’s New Port Is An Overlooked Asset

Article Excerpt

CANADIAN NATIONAL RAILWAY CO. $56 (Toronto symbol CNR; Conservative Growth Portfolio, Manufacturing & Industry sector; Shares outstanding: 510.2 million; Market cap: $28.6 billion; SI Rating: Average) operates a 32,000-km freight railway network across Canada, and south to the Gulf of Mexico. It hauls a variety of goods, including oil, metals, grain, forest products and manufactured products. CN’s revenue fell from $6.1 billion in 2002 to $5.9 billion in 2003, but grew to $7.7 billion in 2006 partly due to acquisitions. Per-share profits rose from $0.91 in 2002 to $3.40 in 2006. Prince Rupert has big growth potential Perhaps CN’s most important purchase in the past few years was BC Rail Ltd. The deal expanded CN’s presence in Western Canada, and gave it exclusive rail access to the port of Prince Rupert, which is closer to Asia than other west coast ports. CN aims to make Prince Rupert a major gateway for Asian trade with North America. It recently opened a new terminal in Prince…