CN plans CA$2.5 billion capital program in 2017

Written by Mischa Wanek-Libman, editor
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Canadian National

Canadian National has planned a CA$2.5 billion (US$1.9 billion) capital program in 2017, down CA$25 million (US$19 million) from 2016.

 

Executives noted during the Class 1’s 2016 Fourth Quarter Earnings call that 2017 does not contain any locomotive purchases as 2016 did, which helped reduce the anticipated 2017 capital program. However, the railroad says its 2017 program continues a focus on hardening core infrastructure.

“We once again are investing with a focus on advancing safety, service and productivity through infrastructure maintenance, strategic growth initiatives and new technology,” said Luc Jobin, CN‘s president and chief executive officer. “We remain committed to investing in our business as we continue to advance our agenda of operational and service excellence.”

CN plans to invest approximately CA$1.6 billion (US$1.2 billion) on track infrastructure to maintain a safe and efficient network, which is level with what was spent in 2016. The planned work includes the replacement of 2.2 million crossties and installation of more than 600 miles of new rail, plus work on bridges, branch line upgrades and other general track maintenance.

The company plans to invest approximately CA$400 million (US$304.7 million) in 2017 to advance the implementation of positive train control along parts of its U.S. network. CN will install the hardware on approximately 3,500 route-miles and plans to invest a total of US$1.2 billion on the entire project by 2020.

Approximately CA$500 million (US$380.9 million) is expected to be spent on equipment, expansion projects and information technology initiatives to serve growing business, improve service for customers and advance safety. This includes planned growth investments to capitalize on Canadian west coast port expansions and key customer projects and safety technology investments, such as wayside inspection systems and track testing vehicles.

Jobin added, “Our 2017 capital program maintains a steady level of investment focused on the maintenance and integrity of our network. This allows us to meet the needs of our customers today and for the long run while pursuing our goal of being the safest railroad in North America.”

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