MONTREAL, May 5, 2015 /CNW/ - CN (TSX: CNR) (NYSE: CNI)
announced today the details of its 2015 plan to invest C$2.7 billion in rail infrastructure maintenance
and improvements, as well as in new capacity, equipment and
technology to raise network safety and efficiency, improve service
and support future growth.
Claude Mongeau, president and
chief executive officer, said: "With the work season now well
underway, CN is embarking on a large number of maintenance and
construction projects to ensure we continue to run a safe railway
and play a continuing role as a true backbone of the economy."
CN is planning to spend approximately C$1.4 billion on track infrastructure. This will
include the replacement of rail, ties and other track materials,
bridge improvements, as well as various branch-line upgrades. Such
investments allow CN to improve the network and are part of a
multi-year program aimed at maintaining a high level of safety and
efficiency while helping CN's customers grow.
Within its track infrastructure spending, CN is allocating
C$100 million to upgrade its feeder
network. This investment is part of the C$500-million program announced earlier this year
to upgrade branch lines that are experiencing rising volumes of
traffic.
CN safety investments this year will include additional fault
detection systems such as wayside inspection system technology, hot
wheel detectors, wheel impact load detectors, signaled sidings to
detect broken rails, and new geometry testing and joint-bar
inspection technology.
CN will also spend approximately C$800
million in 2015 on growth and productivity initiatives such
as yard improvements, intermodal terminals, transload and
distribution centres and information technology.
CN's equipment capital expenditures in 2015 are targeted to
reach approximately C$500 million,
allowing the company to tap growth opportunities and improve the
quality of the fleet. As part of this initiative, CN expects to
take delivery of 90 new high-horsepower locomotives and will invest
in new rolling stock and freight car refurbishments.
Mongeau concluded: "CN is investing in a safe, efficient railway
that is building on a strong foundation as well as building for the
future in this the 20th anniversary year of our initial
public offering of shares. We are proud of our achievements and our
record of investing significant capital in the business to ensure a
sustainable enterprise for many years to come."
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 is a true backbone of the economy, transporting approximately
C$250 billion worth of goods annually
for a wide range of business sectors, ranging from resource
products to manufactured products to consumer goods, across a rail
network spanning Canada and
mid-America. CN – Canadian National Railway Company, along with its
operating railway subsidiaries -- serves the cities and ports of
Vancouver, Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala.,
and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth,
Minn./Superior, Wis., 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