Canadian Pacific Railway announces 2007 planned capital investment

CALGARY – Canadian Pacific Railway plans to spend $885 million to $895 million in 2007 on capital programs.This is an increase from its 2006 program of roughly $845 million.

“CPR’s planned capital investments are targeted at further improving the fluidity of our network, while maintaining the reliability and safety of our infrastructure,” said Fred Green, President and Chief Executive Officer. “These investments support our strategic initiatives, our focus on execution excellence and drive to improve CPR’s operating ratio. This capital plan, implemented with the ingenuity of our employees, will keep us on track to become the safest, most fluid railway in North America.”

2007 investment will focus on track infrastructure, locomotive power, information technology, land, and commercial and other service facilities. This includes approximately $40 million to maintain and increase capacity in automotive and intermodal terminals, to support continued market growth; $150 million for locomotive acquisitions, overhauls and fuel saving modifications, ensuring CPR has the most efficient hauling capacity to meet customer demand and service requirements; $60 million for information technology to improve the systems that manage railway operations and customer shipments; and $625 million to maintain and upgrade rail, ballast, crossties and automated signal systems, buildings and equipment, to extend and build sidings, which are used as passing lanes in single-track areas, and for land acquisitions for future development in strategic locations across the network.

The remainder of the 2007 capital program will be primarily directed towards modifications and upgrades to the freight car fleet to more closely align with customer requirements.

– PRNewswire-FirstCall