CN announced the purchase of Savage Alberta Railway, Inc. (SAR), a 345-mile short-line railway, from Savage Companies of Salt Lake City, Utah, for C$25 million.

The acquisition represents an opportunity for CN to solidify its freight franchise in resource-rich northwestern Alberta.

The SAR transported about 35,000 carloads of freight last year. CN will upgrade the shortline's track to improve operations and customer service, and to maximize its potential for transporting greater volumes of coal, grain and forest products.

The SAR's primary connection with CN is at Swan Landing, Alta., located approximately 38 miles northeast of Jasper. From there the SAR runs north to Grande Prairie, the current base of operations, where one branch runs west to a connection with CN at Hythe, Alta., and another branch runs northeast to Wanham, Alta.

CN is offering employment to SAR's approximately 75 employees and will honor the existing collective labor agreement at SAR.