Canadian Manufacturing

CN details plan to invest $2.9B in track infrastructure, rail cars throughout 2016

Firm looking to boost efficiency on its rail network, secure long-term growth



The railway announced its planned logistics hub last March. PHOTO: CN

The railway will continue upgrading its rolling stock and rail infrastructure in 2016. PHOTO: CN

MONTREAL—The Canadian National Railway Co. has announced plans to invest nearly $3 billion in its rails and rolling stock throughout 2016.

Designed to increase the efficiency of its network, CN says the investments will support the company’s long-term growth and increase safety.

“CN is investing for the long term and we are again planning a significant capital program in 2016 to support a safe and fluid railway network, and to raise the bar on efficiency and customer service,” the company’s president and CEO, Claude Mongeau, said. “Despite the current uncertain economic environment, it is a good time to harden our infrastructure because we can do the work faster and at a better price.”

The railroad firm will pump $1.5 billion into its track infrastructure over the course of the year. The upgrades and maintenance includes everything from the replacement of rails and ties to bridge improvements and line upgrades.

Meanwhile, CN has earmarked another $600 million for its rolling stock. The funds aim to improve its cars’ fuel efficiency as it prepares for traffic volume increases in the future. The railway expects to receive 90 new high-horsepower locomotives during 2016.

CN will also direct $400 million toward upgrading numerous stretches of its U.S. rail network with Positive Train Control (PTC) technology. With federal U.S. regulations requiring such systems be in place by 2020, CN hopes to install the technology along its approximately 3,500 miles of U.S. track by 2018.

Finally, the company will support a range of productivity and service improvement initiatives with the remaining $400 million.

Correction: An earlier version of this story reported the spending plan at $2.5 billion instead of $2.9 billion. We also included a breakdown of how CN plans to portion out the investment

Related Posts from the network