CN Investing $305 Million in Alberta
June 26 2020 - 9:00AM
CN (TSX: CNR) (NYSE: CNI) announced today that, as part of its
strategic investments to support growing demand and enable supply
chains, it plans to invest approximately $305 million (CAD) across
Alberta in 2020.
The investments will include expansion projects
such as the construction of double track to allow more trains to
pass on CN’s mainline. The maintenance program will focus on the
replacement of rail and ties, as well as maintenance work on level
crossings, bridges, culverts, signal systems and other track
infrastructure.
“We take our essential role in the North
American economy seriously and these investments in Alberta are a
key part of our strategy to support growth. The Company remains
committed to help enable supply chains that fuel Alberta’s growth
as we are a critical part of getting everyday goods to markets and
consumers. Safety is a core value at CN and by investing in the
maintenance and expansion of our track and capacity, we are
providing customers with a safe and reliable solution at a time
when fluid supply chains are more critical than ever.”
- James
Thompson, Vice-President, Western Region at CN
“Remaining committed to supporting Canadian
businesses, our government continues to invest in Canada’s economy
to encourage economic growth. We are pleased to see companies such
as CN do their share by investing in improving safety, growing its
capacity and enabling trade through a safe and reliable rail
network. Canada’s natural resources, including grain and energy
products from Alberta, need reliable and safe rail networks to
support existing jobs and create new ones and these investments
support that
need.”- The
Honourable Marc Garneau, Minister of Transport, Government of
Canada
“As our province recovers from
COVID-19, investments to support our supply chain are more
important than ever. By focusing on safety to support Alberta’s
economic recovery, CN is ensuring Albertans get the everyday
goods they
need.”- The
Honourable Ric McIver, Minister of Transportation, Government of
Alberta
“Alberta’s government is committed to creating
jobs and attracting investment to the province. This expansion of
CN’s rail infrastructure in Alberta will provide more opportunities
for our world-class agricultural and energy products to access
markets across North America and around the
globe.”- The
Honourable Prasad Panda, Minister of Infrastructure, Government of
Alberta
The Company’s investments will create greater
capacity, which supports reductions in its customer’s
transportation supply chain GHG emissions, by encouraging the use
of rail for long haul needs. This reduces emissions, traffic
congestion, accidents and burdens on public transportation
infrastructure as one freight train can replace over 300 trucks
from roads. Moving freight by rail instead of truck reduces GHG
emissions by 75%. The Company will also continue to invest in
important safety-enhancing technologies, such as the Autonomous
Track Inspection Program, and Automated Inspection Portals.
Planned expansion projects include the
construction of about 5 miles of double track between Vancouver and
Edmonton, near Hinton.
Maintenance program highlights include:
- Replacement of approximately 71 miles of rail
- Installation of over 210,000 new railroad ties
- Rebuilds of 28 road crossing surfaces
- Maintenance work on bridges, culverts, signal systems, and
other track infrastructure
Alberta in numbers:
- Capital investments: More than $ 1.4 billion in the last five
years
- Employees: approximately 2,891
- Railroad route miles operated: 2,522
- Community partnerships: $1.4 million in 2019
- Local spending: $800 million in 2019
- Cash taxes paid: $125 million in 2019
Alberta generates substantial volumes of
agricultural and energy products. CN also handles growing amounts
of intermodal container traffic through terminals in Calgary and
Edmonton. In Calgary, CN has a logistics park, an automotive
distribution facility, a forest products distribution centre and a
CN CargoFlo bulk handling facility. In Edmonton, the company has
automotive distribution and CargoFlo bulk handling facilities as
well as metals and forest products distribution centres. Edmonton
and Calgary are also home to major rail classification yards. CN
also maintains large railcar and locomotive repair shops at
Edmonton’s Walker Yard. In Fort McMurray, there is a second metals
distribution centre and a third CargoFlo facility. CN also has
another CargoFlo facility and a forest products distribution centre
in Edson as well as one more CargoFlo facility in Hay River,
NT.
Forward-looking statements
Certain statements included in this news release constitute
“forward-looking statements” within the meaning of the United
States Private Securities Litigation Reform Act of 1995 and under
Canadian securities laws. By their nature, 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. Forward-looking statements may be identified by the
use of terminology such as “believes,” “expects,” “anticipates,”
“assumes,” “outlook,” “plans,” “targets,” or other similar words.
Forward-looking statements are not guarantees of future performance
and involve risks, uncertainties and other factors, which may cause
the actual results or performance of the Company to be materially
different from the outlook or any future results or performance
implied by such statements. 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 and available on CN’s website, for a
description of major risk factors.
CN is a true backbone of the economy,
transporting 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.
Contacts: |
|
MediaJonathan AbecassisSenior ManagerMedia
Relations514-399-7956 |
InvestorsPaul ButcherVice-PresidentInvestor
Relations514-399-0052 |
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