Wednesday, February 06, 2013

CN targets CA$1.9 billion in 2013 capital investments

Canadian National (CN) plans to invest approximately CA$1.9 billion (US$1.907 billion) to maintain and upgrade its railway network, grow the business efficiently and continue to improve customer service in 2013.

Claude Mongeau, president and chief executive officer, said, "CN is committed to operating a safe and sustainable railway, making continued improvements in service and seizing traffic opportunities to grow at low incremental cost.

"Infrastructure investments, the acquisition of new locomotives and equipment and the enhancement of information technology systems will help support our agenda of operational and service excellence. They will also make our customers more competitive in domestic and global markets and position us to maximize further business opportunities in intermodal, energy and other resource and manufacturing markets in 2013 and beyond."

More than CA$1 billion (US$1.004 billion) in 2013 will be spent on track infrastructure to continue operating a safe railway and to improve the productivity and fluidity of the network. This investment will include the replacement of rail, ties and other track materials and bridge work, as well as capacity and productivity improvements, among others.

Work includes:

• Continue CN's extended siding program in northern British Columbia, Alberta and northern Ontario

• Double-track portions of its mainline in Saskatchewan and add new signals on CN's Alberta mainline to expedite train movements

• Continue improvements at Kirk Yard in Gary, Ind., and the former Elgin, Joliet and Eastern Railway line in the Chicago area and increase yard capacity and add sidings in the Baton Rouge, La., region.

CN also expects to spend approximately CA$700 million (US$702 million) to grow with its customers across a range of markets as they expand their business, including investments in:

• Transloading operations and distribution centers to transfer freight efficiently between rail and truck

• Construction of the intermodal terminal in Joliet, Ill., and the completion of the Calgary Logistics Park project

• Information technology to improve service and operating efficiency and other projects to support the company's strategic agenda

In addition, CN will target approximately C$200 million (US$200.7 million) in 2013 for the acquisition of locomotives, intermodal equipment and vehicles, as well as locomotive and car refurbishments. CN expects to take delivery of 40 new and 37 second-hand, high-horsepower locomotives during the next 24 months, after also acquiring 25 new and 123 second-hand high-horsepower locomotives in 2012.

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