Friday, February 17, 2012

CN charts C$1.75 billion 2012 capex

Written by  Luther S. Miller, Senior Consulting Editor

Canadian National said Friday it plans to invest C$1.75 billion in 2012 to maintain and upgrade its railway network, support growth and productivity initiatives, and continue to provide customers with a high level of service.

CN President and CEO Claude Mongeau said, "CN is taking its business model to the next level with its focus on Operational and Service Excellence. We are making major strides in improving all customer service touch points, delivering innovative products and achieving end-to-end supply chain collaboration while continually improving productivity. CN's capital spending is critical to running a safe, fluid, and productive network and to attaining our growth and service objectives."

More than C$1 billion of CN's 2012 capital investment program will be directed to track infrastructure to maintain safe railway operations and to enhance the productivity and fluidity of the rail network. This includes replacement of rail, ties, and other track materials and bridge improvements.

CN's infrastructure plan also includes funds for initiatives such as: rail line and yard improvements on the Elgin, Joliet and Eastern Railway Co., located in Chicagoland, that CN acquired in 2009; extended sidings along its Edmonton-Prince Rupert, B.C., route; and longer passing tracks in northern Ontario.