"CN is committed to making continued improvements in its safety performance," said Claude Mongeau, president and chief executive officer. "Infrastructure investments are critical to this, as well as to driving improvements in customer service and taking advantage of freight opportunities to grow the business at low incremental cost.
"Investments in our network and distribution capability, the acquisition of new locomotives and equipment and the enhancement of information systems and technology will help support our agenda of operational and service excellence. They will help us achieve our goal of becoming a true supply chain enabler and help our customers compete better in their markets. They will also position us to take advantage of business opportunities in intermodal, energy and other resource and manufacturing markets."
CN is targeting to spend more than CA$1.2 billion (US$1 billion) in 2014 on track infrastructure and to improve the safety, productivity and fluidity of the network. This investment will include the replacement of rail, ties and other track materials, bridge improvements, as well as various branch-line upgrades. This will also include funds for strategic initiatives and additional improvements to track infrastructure in western and eastern Canada, as well as in the United States.
CN's equipment capital expenditures in 2014 are targeted to reach approximately CA$300 million (US$272 million), allowing the company to tap growth opportunities and improve the quality of the fleet, which includes acquiring 45 new high-horsepower locomotives. By the end of 2014, CN will have acquired 763 high-horsepower locomotives over a 10-year period.
CN expects to spend approximately CA$600 million (US$543 million) in 2014 on facilities, including transloading terminals, distribution centers and the completion of its Calgary Logistics Park project.
The company is also allocating funds to enhance its system-wide flaw detection capabilities and will complete the construction of two training facilities, one in Winnipeg, the other in suburban Chicago.