CN to invest US$1.7 billion on capital investments in 2011

STATE-OWNED Canadian National Railway (CN) plans to spend C$1.7 billion (US$1.7 billion) on track infrastructure to improve the safety, productivity and fluidity of its railway network, fleet upgrades, and the development of new facilities such as distribution centres.


A report by CNW Telbec gave a breakdown of the company's capital investment programme for this year, saying around C$1 billion would be spent on track infrastructure, including the replacement of rail, ties and other track materials and bridge improvements, as well as rail-line improvements on the Elgin, Joliet and Eastern Railway Company (EJ&E) that was acquired by CN in 2009.


CN also anticipates about C$500 million would be spent on facilities to grow the business, including transloads and distribution centres to serve off-line customers; and information technology upgrades to increase productivity.


Equipment spending, including the acquisition of new fuel-efficient locomotives as well as new freight cars, is expected to reach approximately C$200 million in 2011.


The company said, "Other funds would be apportioned for strategic initiatives across the system and additional network improvements in western and eastern Canada."


Claude Mongeau, president and chief executive officer, was quoted as saying: "CN is focused on running a safe, sustainable railway and growing our business profitably at low incremental cost. We are pursuing this agenda through infrastructure investments, strengthening ties with our customers, and innovative service improvements. Our service innovations include 'first-mile/last-mile' initiatives that respond to customer needs at origin and destination, and supply chain collaboration that emphasises an end-to-end view of service quality.
(Source:http://www.schednet.com)