CN targets $2.2B in 2015 capex

Written by Jenifer Nunez, assistant editor
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Canadian National plans to invest CA$2.7 billion (US$2.2 billion) in rail infrastructure maintenance and improvements, as well as in new capacity, equipment and technology in 2015 to raise network safety and efficiency, improve service and support future growth

 

“With the work season now well underway, CN is embarking on a large number of maintenance and construction projects to ensure we continue to run a safe railway and play a continuing role as a true backbone of the economy,” said Claude Mongeau, president and chief executive officer.

CN is planning to spend approximately CA$1.4 billion (US$1.2 billion) on track infrastructure. This will include the replacement of rail, ties and other track materials, bridge improvements, as well as various branch-line upgrades.

Within its track infrastructure spending, CN is allocating CA$100 million (US$83 million) to upgrade its feeder network. This investment is part of the CA$500-million (US$415 million) program announced earlier this year  to upgrade branch lines that are experiencing rising volumes of traffic.

CN safety investments will include additional fault detection systems, such as wayside inspection system technology, hot wheel detectors, wheel impact load detectors, signaled sidings to detect broken rails and new geometry testing and joint-bar inspection technology.

CN will also spend approximately CA$800 million (US$664 million) on growth and productivity initiatives, such as yard improvements, intermodal terminals, transload and distribution centers and information technology.

Equipment capital expenditures in 2015 are targeted to reach approximately CA$500 million (US$415 million), allowing the company to tap growth opportunities and improve the quality of the fleet. As part of this initiative, CN expects to take delivery of 90 new high-horsepower locomotives and will invest in new rolling stock and freight car refurbishments.

 

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