Investment up C$500 million compared to last year; plan includes new spending on capacity projects to add resiliency to network  

MONTREAL - 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."