MONTREAL, Feb. 10, 2016 /PRNewswire/ - CN (TSX: CNR) (NYSE: CNI) announced today the details of its 2016 plan to invest approximately C$2.9 billion in rail infrastructure and equipment to raise network efficiency, support long-term growth and further strengthen safety.
Claude Mongeau, president and chief executive officer, said: "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. 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.
The company plans to invest C$400 million this year in a range of other key initiatives to drive productivity and to improve service for its customers. CN will also spend C$400 million on the implementation of Positive Train Control (PTC) technology on portions of its U.S. rail network. CN plans to install all the required technology hardware on approximately 3,500 route-miles of its network by the end of 2018, with full PTC system operability achieved by the end of 2020, as required by U.S. federal government safety legislation.
Mongeau concluded: "The strength of CN's balance sheet enables us to sustain significant capital investments throughout business cycles. Rail is critical to the North American economy, and our investments will allow the company to build on its long- term competitive advantage."
Certain information included in this news release constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. CN cautions that, by their nature, these 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. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company or the rail industry to be materially different from the outlook or any future results or performance implied by such statements. Important factors that could affect the above forward-looking statements include, but are not limited to, the effects of general economic and business conditions, industry competition, inflation, currency and interest rate fluctuations, changes in fuel prices, legislative and/or regulatory developments, compliance with environmental laws and regulations, actions by regulators, various events which could disrupt operations, including natural events such as severe weather, droughts, floods and earthquakes, labor negotiations and disruptions, environmental claims, uncertainties of investigations, proceedings or other types of claims and litigation, risks and liabilities arising from derailments, and other risks and assumptions detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. 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, available on CN's website, for a summary of major risks.
CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable Canadian securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
CN is a true backbone of the economy whose team of approximately 23,000 railroaders transports 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.