CN targets C$1.9 billion in 2013 capital investments to improve
service, raise network efficiency and grow the business
MONTREAL,
Feb. 5, 2013 /PRNewswire/ - CN (TSX:
CNR) (NYSE: CNI) announced today a 2013 plan to invest
approximately C$1.9 billion to
maintain and upgrade its railway network, grow the business
efficiently, and continue to improve customer service.
Claude Mongeau, president and
chief executive officer, said: "CN is committed to operating a safe
and sustainable railway, making continued improvements in service
and seizing traffic opportunities to grow at low incremental
cost.
"Infrastructure investments, the acquisition of new locomotives
and equipment and the enhancement of information technology systems
will help support our agenda of operational and service excellence.
They will also make our customers more competitive in domestic and
global markets and position us to maximize further business
opportunities in intermodal, energy and other resource and
manufacturing markets in 2013 and beyond."
More than C$1 billion in 2013 will
be spent on track infrastructure to continue operating a safe
railway and to improve the productivity and fluidity of the
network. This investment will include the replacement of rail, ties
and other track materials, and bridge work, as well as capacity and
productivity improvements, among others, to:
- Continue CN's extended siding program in northern British Columbia, Alberta, and northern Ontario;
- Double-track portions of its mainline in Saskatchewan and add new signals on CN's
Alberta main line to expedite
train movements;
- Continue improvements at Kirk Yard in Gary, Ind., and the former Elgin, Joliet
and Eastern Railway line, and increase yard capacity and add
sidings in the Baton Rouge, La.,
region.
CN also expects to spend approximately C$700 million to grow with its customers across a
range of markets as they expand their business, including
investments in:
- Transloading operations and distribution centres to transfer
freight efficiently between rail and truck;
- Construction of the recently-announced intermodal terminal in
Joliet, Ill., and the completion
of the Calgary Logistics Park project, and
- Information technology to improve service and operating
efficiency, and other projects to support the Company's strategic
agenda.
In addition, CN will target approximately C$200 million in 2013 for the acquisition of
locomotives, intermodal equipment and vehicles as well as
locomotive and car refurbishments. CN expects to take delivery of
40 new and 37 second-hand high-horsepower locomotives over the next
24 months, after also acquiring 25 new and 123 second-hand
high-horsepower locomotives in 2012.
In 2012, CN's capital investment program totalled more than
C$1.8 billion.
Forward-Looking Statements
Certain information included in this news release constitutes
"forward-looking statements" within the meaning of the United States Private Securities
Litigation Reform Act of 1995 and under Canadian securities laws.
CN cautions that, by their nature, these forward-looking statements
involve risks, uncertainties and assumptions. The Company
cautions that its assumptions may not materialize and that current
economic conditions render such assumptions, although reasonable at
the time they were made, subject to greater uncertainty. Such
forward-looking statements are not guarantees of future performance
and involve known and unknown risks, uncertainties and other
factors which may cause the actual results or performance of the
Company or the rail industry to be materially different from the
outlook or any future results or performance implied by such
statements. Important factors that could affect the above
forward-looking statements include, but are not limited to, the
effects of general economic and business conditions, industry
competition, inflation, currency and interest rate fluctuations,
changes in fuel prices, legislative and/or regulatory developments,
compliance with environmental laws and regulations, actions by
regulators, various events which could disrupt operations,
including natural events such as severe weather, droughts, floods
and earthquakes, labor negotiations and disruptions, environmental
claims, uncertainties of investigations, proceedings or other types
of claims and litigation, risks and liabilities arising from
derailments, and other risks and assumptions detailed from time to
time in reports filed by CN with securities regulators in
Canada and the United States. Reference should be made to
"Management's Discussion and Analysis" in CN's annual and interim
reports, Annual Information Form and Form 40-F filed with Canadian
and U.S. securities regulators, available on CN's website, for a
summary of major risks.
CN assumes no obligation to update or revise
forward-looking statements to reflect future events, changes in
circumstances, or changes in beliefs, unless required by applicable
Canadian securities laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will
make additional updates with respect to that statement, related
matters, or any other forward-looking statement.
CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and
mid-America, from the Atlantic and Pacific oceans to the
Gulf of Mexico, serving the ports
of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala.,
and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth,
Minn./Superior, Wis.,
Green Bay, Wis., Minneapolis/St. Paul, Memphis, St.
Louis, and Jackson, Miss.,
with connections to all points in North
America. For more information on CN, visit the company's
website at www.cn.ca.
SOURCE CN