CN’s 2011 capital budget: C$1.7 billion

CN announced plans Wednesday to invest C$1.7 billion in 2011 capital improvements in order “to grow the business efficiently and to continue to provide customers with a high level of service.” In the past five years, CN’s annual capital budget has averaged around C$1.6 billion.

Approximately C$1 billion of CN‘s 2011 capital investment program will be spent on replacement of rail, ties, and other track materials and bridge improvements, as well as rail line improvements on the Elgin, Joliet & Eastern Railway lines that CN acquired in 2009.

Spending for locomotives and freight cars will reach approximately C$200 million.

CN expects to invest approximately C$500 million on facilities to grow its business, including transload and distribution centers, plus new information technology and other projects to increase productivity.

“CN is focused on running a safe, sustainable railway and growing business profitably at low incremental cost,” said Claude Mongeau, president and chief executive officer (pictured at right). “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 emphasizes an end-to-end view of service quality.”