Canadian National Railway plans to invest $C2.7 billion in 2015 for rail infrastructure maintenance improvements, as well as in new capacity, equipment and technology to raise network safety and efficiency, improve service and support future growth, the company announced on May 5, 2015.
“With the work season now well under way, CN is embarking on a large number of maintenance and construction projects to ensure we continue to run a safe railway and play a continuing role as a true backbone of the economy,” said Claude Mongeau, CN President and CEO.
Of the $C2.7 billion, approximately $C1.4 billion will be spent on track infrastructure, including the replacement of rail, ties and other track materials, bridge improvements and various branch-line upgrades. Such investments allow CN to improve the network and are a part of a multi-year program aimed at maintaining a high level of safety and efficiency while helping CN’s customers grow, the railroad said.
Within its track infrastructure spending, CN is allocating $C100 million to upgrade its feeder network. This investment is part of the $C500-million program announced earlier this year to upgrade branch lines that are experiencing rising volumes of traffic.
Safety investments this year will include additional fault detection systems such as wayside inspection system technology, hot wheel detectors, wheel impact load detectors, signaled sidings to detect broken rails, and new geometry testing and joint-bar inspection technology.
CN will also spend approximately $C800 million in 2015 on growth and productivity initiatives such as yard improvements, intermodal terminals, transload and distribution centers, and information technology.
The railroad’s equipment capital expenditures in 2015 are targeted to reach approximately C$500 million, which will allow CN to tap growth opportunities and improve the quality of its fleet, CN said. As part of this initiative, CN expects to take delivery of 90 new high-horsepower locomotives and will invest in new rolling stock and freight car refurbishments.
“CN is investing in a safe, efficient railway that is building on a strong foundation as well as building for the future in this the 20th anniversary year of our initial public offering of shares,” Mongeau said. “We are proud of our achievements and our record of investing significant capital in the business to ensure a sustainable enterprise for many years to come.”