CN is planning to invest approximately C$2.9 billion (nearly $2.1 billion) in 2016 in rail infrastructure and equipment to raise network efficiency, support long-term growth and further strengthen safety, the company said last week.
“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,” Claude Mongeau, president and chief executive officer, said in a news release. 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.