CN to invest $1.75 billion on infrastructure, equipment upgrades

MONTREAL, Que. — CN Rail will invest $1.75 billion in 2012 to maintain and upgrade its railway network, support growth and productivity, and provide customers with a high level of service, the company announced

“CN is taking its business model to the next level with its focus on operational and service excellence,” said Claude Mongeau, president and CEO. “CN’s capital spending is critical to running a safe, fluid and productive network and to attaining our growth and service objectives.”

More than $1 billion of CN’s 2012 investment program will be targeted on track infrastructure – replacement of rail, ties and other track materials and bridge improvements – to maintain safe railway operations and enhance the fluidity of the rail network.

CN’s infrastructure envelope also includes funds for initiatives such as rail line and yard improvements on the Elgin, Joliet and Eastern Railway Company in Illinois acquired by CN in 2009, extended sidings along its Edmonton-Prince Rupert, B.C., corridor and longer passing tracks in Northern Ontario.

Equipment spending, which is intended to improve the quality of the fleet and meet customer requirements, will include new freight cars and locomotive upgrading and is targeted to reach approximately $150 million in 2012.

CN said it will also spend $500 million on information technology to support operational and service excellence.