February 10, 2016
CN targeting C$2.9 billion in 2016 capital investments, including rolling stock
MONTREAL--CN announced 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.
Claude Mongeau, president and chief executive officer, 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."
CN plans to spend approximately C$1.5 billion on track infrastructure to maintain a highly efficient and safe network. 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 equipment, allowing the company to tap available growth opportunities and to improve the quality of its car fleet. To handle future traffic volumes and further improve fuel efficiency, CN also expects to take delivery of 90 new high-horsepower locomotives.
The company plans to invest C$400 million this year in a range of other key initiatives to drive productivity and to improve service for its 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. CN plans to install all the required technology 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.
Mongeau concluded: "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."