CN announced on Feb. 10, 2016 the details of its 2016 plan to invest approximately C$2.9 billion in rail infrastructure and equipment “to raise network efficiency, support long-term growth and further strengthen safety.”
CN plans to spend approximately C$1.5 billion on track infrastructure “to maintain a highly efficient and safe network,” the railroad said. This work will include the replacement of rail, ties, and other track materials, bridge improvements, and targeted branch line upgrades.
CN will invest C$600 million in rolling stock , “allowing the company to tap available growth opportunities and to improve the quality of its car fleet.” CN also expects to take delivery of 90 new high-horsepower locomotives “to handle future traffic volumes and further improve fuel efficiency.”
CN said it plans to invest C$400 million this year in “a range of other key initiatives to drive productivity and to improve service for customers.” CN will also spend C$400 million on the implementation of Positive Train Control (PTC) technology on portions of its U.S. rail network. The railroad said it expects to install all the required PTC hardware on approximately 3,500 route-miles of its network by the end of 2018, with full PTC system operability achieved by the end of 2020, as required by U.S. federal government safety legislation.
Claude Mongeau, President and CEO, said, “CN is investing for the long term, and we are again planning a significant capital program in 2016 to support a safe and fluid railway network, and to raise the bar on efficiency and customer service. Despite the current uncertain economic environment, it is a good time to harden our infrastructure because we can do the work faster and at a better price. The strength of CN’s balance sheet enables us to sustain significant capital investments throughout business cycles. Rail is critical to the North American economy, and our investments will allow the company to build on its long-term competitive advantage.”