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 $445 million (CAD) across
British Columbia in 2020.
The investments will include expansion projects
that will add track in yards to handle growing traffic, new sidings
as well as continued investments in multi-year initiatives to
increase capacity at the Port of Vancouver and at the Port of
Prince Rupert in collaboration with the Government of Canada, the
Vancouver Fraser Port Authority, and the Prince Rupert Port
Authority. The maintenance program will focus on the replacement of
rail and ties and maintenance work on level crossings, culverts,
signal systems and other track infrastructure.
“We take our essential role in the North
American economy seriously and these investments in British
Columbia are a key part of our strategy to support growth. The
Company remains committed to help enable supply chains that fuel
British Columbia’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. Our government has invested to encourage the fluidity of
the Western Canadian trade gateway in British Columbia and CN is a
key partner in those infrastructure expansions. These investments
will continue to enable and support supply chains that make Canada
a reliable international trading partner.”- The Honourable
Marc Garneau, Minister of Transport, Government of Canada
“CN is a transportation lifeline for people and
businesses throughout B.C. This investment is great news for the
2,400 CN employees in B.C., their families, and the many more who
will indirectly benefit from these important upgrades. CN is a key
part of the post-COVID-19 economy where the export of B.C.-made
goods will be so crucial.”- The Honourable Michelle Mungall,
Minister of Jobs, Economic Development and Competitiveness,
Government of British Columbia
“A sound railway network is critical to our
local, provincial and national economies. Our government
appreciates CN’s contribution and dedication to strengthen our
supply chain, especially as we begin to safely restart the economy
during COVID-19. Investments like this will ensure that we remain
well positioned to support trade so British Columbians and
Canadians have access to the products they need in their daily
lives.”- The Honorable Claire Trevena, Minister of Transportation
and Infrastructure, Government of British Columbia
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 continue to deploy important
safety enhancing technologies across its network, such as the
Autonomous Track Inspection Program, Distributed Air Cars and
Automated Inspection Portals.
Planned expansion projects include:
- Construction of about 3.5 miles of double track between
Vancouver and Edmonton, near Glen Valley.
- Building new sidings on the Edmonton to Prince Rupert corridor
to increase capacity for growing demand.
- Continued investments to continue multi-year infrastructure
projects that will increase capacity at the ports of Vancouver and
Prince Rupert in collaboration with the Government of Canada, the
Vancouver Fraser Port Authority and the Prince Rupert Port
Authority.
Maintenance program highlights include:
- Replacement of more than 100 miles of rail
- Installation of over 209,000 new railroad ties
- Installation of over 46,000 concrete ties
- Rebuilds of 22 road crossing surfaces
- Maintenance work on bridges, culverts, signal systems, and
other track infrastructure
British Columbia in
numbers:
- Capital investments: More than $ 1.3 billion in the last five
years
- Employees: approximately 2,465
- Railroad route miles operated: 2,814
- Community partnerships: $870,000 in 2019
- Local spending: $535 million in 2019
- Cash taxes paid: $192 million in 2019
The bustling ports of Vancouver and Prince
Rupert are dynamic gateways to international trade, offering
shorter transit times to Asia. At the Port of Vancouver, CN has
coal, grain and intermodal terminals. In the Vancouver area, CN has
two distribution centres for forest products, two for metals, three
for automotive products, and a CN CargoFlo bulk handling centre. In
Prince George, CN has an intermodal terminal and another CargoFlo
bulk handling facility in Ashcroft. Vancouver is home to a major
rail classification yard.
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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