MONTREAL, Feb. 10, 2016 /PRNewswire/ - CN (TSX: CNR)
(NYSE: CNI) announced today the details of its 2016 plan to invest
approximately C$2.9 billion in rail
infrastructure and equipment to raise network efficiency, support
long-term growth and further strengthen safety.
Claude Mongeau, president and
chief executive officer, said: "CN is investing for the long term
and we are again planning a significant capital program in 2016 to
support a safe and fluid railway network, and to raise the bar on
efficiency and customer service. Despite the current uncertain
economic environment, it is a good time to harden our
infrastructure because we can do the work faster and at a better
price."
CN plans to spend approximately C$1.5
billion on track infrastructure to maintain a highly
efficient and safe network. This work will include the replacement
of rail, ties, and other track materials, bridge improvements, and
targeted branch line upgrades.
CN will invest C$600 million in
rolling stock equipment, allowing the company to tap available
growth opportunities and to improve the quality of its car fleet.
To handle future traffic volumes and further improve fuel
efficiency, CN also expects to take delivery of 90 new
high-horsepower locomotives.
The company plans to invest C$400
million this year in a range of other key initiatives to
drive productivity and to improve service for its customers. CN
will also spend C$400 million on the
implementation of Positive Train Control (PTC) technology on
portions of its U.S. rail network. CN plans to install all the
required technology hardware on approximately 3,500 route-miles of
its network by the end of 2018, with full PTC system operability
achieved by the end of 2020, as required by U.S. federal government
safety legislation.
Mongeau concluded: "The strength of CN's balance sheet enables
us to sustain significant capital investments throughout business
cycles. Rail is critical to the North American economy, and our
investments will allow the company to build on its long- term
competitive advantage."
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 whose team of approximately
23,000 railroaders transports more than 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 of
approximately 20,000 route-miles 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 about CN, visit the Company's website at
www.cn.ca.
SOURCE CN