The funding will be used for technology, capacity, and rolling stock units, besides company-wide decarbonisation initiatives and network improvements.
In Quebec, the funding will be used for the replacement of 43.4km of rail and the installation of over 118,000 new railroad ties.
The investment will also help carry out maintenance work on bridges, culverts, signal systems, and other track infrastructure in Quebec.
In British Columbia, the financing will be used to replace 178.6km of rail and deploy around 26,000 new railroad ties.
It will also facilitate the reconstruction of 37 road crossing surfaces, in addition to maintenance work on bridges, culverts, signal systems, and other track infrastructure in British Columbia.
CN chief legal officer and corporate services executive vice-president Sean Finn said: “Railways play an important role in growing our economy, and I am pleased to see CN taking this important step to strengthen our rail networks.
“Today’s announcement will help improve the fluidity of our rail network against the unprecedented disruptions to service we have seen in the last two years and is good news for Canadians.”
In April this year, CN reduced its earnings forecast for 2022, citing global economic uncertainty.