Investment up C$500
million compared to last year; plan includes new spending on
capacity projects to add resiliency to network
MONTREAL, Jan. 23, 2018 /CNW/ - CN (TSX: CNR) (NYSE:
CNI) today announced its planned C$3.2
billion capital program will focus on key capacity projects
to meet growing freight demand and continued investment in
infrastructure maintenance to enhance safety and efficiency.
"CN is investing more than ever before in the safety, efficiency
and resiliency of our network," said Luc Jobin, CN president and
chief executive officer. "These record investments, a substantial
portion of which will go to new capacity and growth projects, will
improve our network fluidity, allowing us to deliver superior
service to meet our customers' growing freight volumes."
For the third straight year, CN plans to invest approximately
C$1.6 billion on track and railway
infrastructure maintenance to support safe and efficient
operations. The planned work includes the replacement of 2.1
million rail ties and more than 600 miles of rail, plus work on
bridges and other general track maintenance.
Approximately C$400 million is
expected to be spent on equipment, including the acquisition of new
high horsepower locomotives. A further C$800
million is targeted towards initiatives to increase capacity
and enable growth, such as track infrastructure expansion,
investments in yards and in intermodal terminals; and on
information technology to improve safety performance, operational
efficiency and customer service.
More specifically, major capacity and equipment investments
include:
- Sixty new GE locomotives, the first deliveries from a
three-year order of 200 new units
- Double track and siding extensions in the West Coast to
Chicago corridors
- Intermodal equipment and infrastructure in Toronto, Memphis,
Tenn., Joliet, Ill., and
other terminals
The Company plans to invest approximately C$400 million in 2018 on the implementation of
Positive Train Control (PTC) along 3,500 route miles of its U.S.
network. CN plans to invest a total of US$1.4 billion on PTC capital expenditures by
2020.
"CN's growth continues to outpace the economy," Jobin said.
"With our 2018 capital program and ongoing hiring, we are focused
on meeting the needs of our customers. We have confidence in the
North American economy and in our ability to help our customers
grow their businesses."
Forward-Looking Statements
Certain statements included
in this news release constitute "forward-looking statements" within
the meaning of the United States Private Securities Litigation
Reform Act of 1995 and under Canadian securities laws. By their
nature, forward-looking statements involve risks, uncertainties and
assumptions. The Company cautions that its assumptions may not
materialize and that current economic conditions render such
assumptions, although reasonable at the time they were made,
subject to greater uncertainty. Forward-looking statements may be
identified by the use of terminology such as "believes," "expects,"
"anticipates," "assumes," "outlook," "plans," "targets," or other
similar words.
Forward-looking statements are not guarantees of future
performance and involve known and unknown risks, uncertainties and
other factors which may cause the actual results or performance of
the Company to be materially different from the outlook or any
future results or performance implied by such statements.
Accordingly, readers are advised not to place undue reliance on
forward-looking statements. Important risk factors that could
affect the forward-looking statements include, but are not limited
to, the effects of general economic and business conditions;
industry competition; inflation, currency and interest rate
fluctuations; changes in fuel prices; legislative and/or regulatory
developments; compliance with environmental laws and regulations;
actions by regulators; increases in maintenance and operating
costs; security threats; reliance on technology and related
cybersecurity risk; trade restrictions or other changes to
international trade arrangements; transportation of hazardous
materials; various events which could disrupt
operations, including natural events such as severe weather,
droughts, fires, floods and earthquakes; climate change; labor
negotiations and disruptions; environmental claims; uncertainties
of investigations, proceedings or other types of claims and
litigation; risks and liabilities arising from derailments; timing
and completion of capital programs; and other risks detailed from
time to time in reports filed by CN with securities regulators in
Canada and the United States. Reference should be made to
Management's Discussion and Analysis in CN's annual and interim
reports, Annual Information Form and Form 40-F, filed with Canadian
and U.S. securities regulators and available on CN's website, for a
description of major risk factors.
Forward-looking statements reflect information as of the date on
which they are made. CN assumes no obligation to update or revise
forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable
securities laws. In the event CN does update any forward-looking
statement, no inference should be made that CN will make additional
updates with respect to that statement, related matters, or any
other forward-looking statement.
CN is a true backbone of the economy whose team of approximately
24,000 railroaders transports more than C$250 billion worth of goods annually for a wide
range of business sectors, ranging from resource products to
manufactured products to consumer goods, across a rail network of
approximately 20,000 route-miles spanning Canada and mid-America. CN – Canadian National
Railway Company, along with its operating railway subsidiaries –
serves the cities and ports of Vancouver, Prince
Rupert, B.C., Montreal,
Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of
Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth,
Minn./Superior, Wis., and
Jackson, Miss., with connections
to all points in North America.
For more information about CN, visit the Company's website at
www.cn.ca.
SOURCE CN