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Ottawa ups individual Canadian National share holdings from 15 to 25pc

THE Canadian National Railway, once a wholly state-owned enterprise, but privatised in the '90s, is easing individual ownership limits the blessing of the federal government.

The changes, unveiled in a government sponsored bill, would lift individual share ownership limit for Canadian National, Canada's largest railway, to 25 per cent from the current 15 per cent.

Changes to airline rules also opened the door to joint ventures and codified a previously announced hike in the foreign ownership limit of foreign carriers, to 49 per cent from 25 per cent, reported Bloomberg News.

"It was a reasonable thing to increase that to 25 per cent," Transport Minister Marc Garneau told a press conference in Ottawa. "We felt that this wasn't fair to CN."

Bill Gates, the railway company's biggest single shareholder with 13.3 per cent, through Cascade Investment LLC fund and another 2.3 per cent through the Bill & Melinda Gates Foundation.

Wheat growers expect the new rules to boost services available to them. The Western Canadian Wheat Growers Association saw "some positive changes", but declined to comment further.

"Only time will tell if this works in a practical way to provide greater competition," the group said in a written statement.

Canada's transport sector is saddled by legacy issues stemming from the government's heavy involvement in the industry, including ownership of both Canadian National and Air Canada until recently and restrictions to competition.