CN 2016 capital plan shows slight increase over 2015


Written by Jenifer Nunez, assistant editor
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Canadian National's 2016 capital plan includes an investment of approximately CA$2.9 billion (US$2.07 billion) in rail infrastructure and equipment to raise network efficiency, support long-term growth and further strengthen safety. The railroad is the only North American Class 1 to increased its spend over 2015, which for CN was CA$2.8 billion (US$2.06 billion.)

 

“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,” said Claude Mongeau, president and chief executive officer. “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 says it plans to spend approximately CA$1.5 billion (US$1.074 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 CA$600 million (US$430 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 railroad says it plans to invest CA$400 million (US$686 million) this year in a range of other key initiatives to drive productivity and to improve service for its customers. It will also spend CA$400 million (US$686 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.

“The strength of CN’s balance sheet enables us to sustain significant capital investments throughout business cycles,” said Mongeau. “Rail is critical to the North American economy and our investments will allow the company to build on its long- term competitive advantage.”

 

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