James M. Foote: The lack of congestion in LA Long beach caused some customers to be not as eager to make a complete shift to Prince Rupert, and therefore my comments earlier in the year that I was confident that I would have the facility sold out this year have not come to reality. Everybody expects that as we move into 2008, which is why more and more vessels continue to go all water out to East Coast ports to avoid the west is that this congestion issue will return and that will make Prince Rupert again not only more attractive, but a necessity, which is why it is not only the steamship companies that are interested in going there. Manufacturers and the receivers of the product want to make sure they can get in the markets and they are eager to use Prince Rupert. In 2008, if we do not get it done this year, we will still get it for more lager customer and there we will have the facility sold out and we will continue to progress and aggressively pursue expansion of the port of Prince Rupert.
Bill MacKenzie (TD Newcrest): The other revenue line was the driver to the revenues in terms the year-over-year growth. What is going on there and what is CN worldwide?
James M. Foote: Of the growth of C$22 million year-over-year half comes from the non-rail logistics businesses growth warehousing, trucking etcetera where, we are aggressively pursuing growing that business and the other half of that comes from a change in the methodology of accounting for the revenues associated with our cold dock and iron ore dock where the revenues from that used to be up in the business unit item and they are now down in the other revenue although we did not restate the prior period because it was one small change.
Bill MacKenzie (TD Newcrest): Is there are any longer term impact on earnings from entering into sale lease best transaction or any lost sort of other revenues from the sale of these assets?
E. Hunter Harrison: Our other income will be lower if we conclude the sale of EW West, but the central station, the lease expense that we will have going forward will be offset by the profit so that we would differ overtime on the transaction itself, so the sale lease back component of the transaction, amortize gain, which is about the same as the increase lease expense. |