CN invests in Canada, US rail infrastructure projects

MONTREAL, QC and Chicago, Ill. — CN plans to invest more than C$1.1 billion in rail infrastructure projects in Eastern and Western Canada this year, as well as in the United States.

With the improvements, the company aims to maintain a safe railway and improve the productivity and fluidity of its network, CN said in a release.

CN’s capital spending in its Eastern Region is targeted at replacement of rail, ties and other track materials, and bridge improvements.

The company is also investing in the continuing reconfiguration of MacMillan Yard north of Toronto to permit more efficient terminal operations.

CN’s capital spending in its Western Region is targeted at replacement of rail, ties and other track materials, and bridge improvements.

It is also investing in extended sidings and terminal improvements to grow its business and permit more efficient movement of traffic in Western Canada, including CN’s line to the new Port of Prince Rupert container terminal, as well as upgrading of its recently acquired Athabasca Northern Railway (ANY).
In addition, CN will continue upgrading other former Northern Alberta short lines purchased in 2006.

CN’s capital spending in its Southern Region, meanwhile, is targeted at replacement of rail, ties and other track materials, as wellas bridge improvements.

CN will also complete the multi-year US$100-million upgrade of Johnston Yard in Memphis in 2008, and will invest in other terminals and new and extended sidings to permit more efficient operations.

Company-wide, in 2008, CN will invest approximately C$1.5 billion, of which more than C$1.1 billion will be focused on track infrastructure.

Equipment spending, targeted to reach approximately C$140 million in 2008, will include the acquisition of new fuel-efficient locomotives, as well as improvements to the existing fleet.

CN also expects to spend approximately C$250 million on facilities to grow the business, including transloads and distribution centers, information technology to improve service and operating efficiency, and other projects to increase productivity.