Canadian National Railway Company (CN) says it plans to spend four per cent more than last year on capital programmes in 2007, amounting to C$1.6 billion (US$1.3 billion).The spending that is equivalent to almost one-fifth of revenues is intended to raise the railroad's capacity and productivity to accommodate the growing container trade with Asia. "In 2007 we will invest more than C$1 billion in track infrastructure to maintain a safe railway and to improve the productivity and fluidity of our network across Canada and mid-America," said Hunter Harrison, president and chief executive officer of CN. In 2007, C$800 million will be invested in replacing rail, ties and other track materials and improving bridges.
CN said in a statement that it will also invest close to C$200 million in network and growth-related projects. These include extended sidings and double-stack clearances on the railway's BC North Line to accommodate container traffic from the new Prince Rupert Intermodal Terminal, which is scheduled to open in the second half of 2007; new siding capacity between Winnipeg and Chicago, and the continued upgrading of its freight car classification yard in Memphis, Tennessee. In Western Canada alone, CN plans to invest nearly C$350 million on track infrastructure. Meanwhile, the company's equipment spending is targeted to reach approximately C$350 million in 2007 on new locomotives and other improvements to the core fleet. Almost C$150 million will be spent on freight cars and intermodal equipment. CN also expects to spend more than C$200 million on facilities to grow the business, including transloads and distribution centres, as well as on information technology to improve service and operating efficiency.
CN said in a statement that it will also invest close to C$200 million in network and growth-related projects. These include extended sidings and double-stack clearances on the railway's BC North Line to accommodate container traffic from the new Prince Rupert Intermodal Terminal, which is scheduled to open in the second half of 2007; new siding capacity between Winnipeg and Chicago, and the continued upgrading of its freight car classification yard in Memphis, Tennessee. In Western Canada alone, CN plans to invest nearly C$350 million on track infrastructure. Meanwhile, the company's equipment spending is targeted to reach approximately C$350 million in 2007 on new locomotives and other improvements to the core fleet. Almost C$150 million will be spent on freight cars and intermodal equipment. CN also expects to spend more than C$200 million on facilities to grow the business, including transloads and distribution centres, as well as on information technology to improve service and operating efficiency.