Canadian National Railway Company (CN) is planning to invest C$2.7bn ($2.2bn) this year to bolster network safety and efficiency, as well as grow its business.
The investment will be used in rail infrastructure maintenance and improvements, as well as in new capacity, equipment and technology to raise network safety and efficiency, improve service and support future growth.
Canadian National Railway president and chief executive officer Claude Mongeau said: “With the work season now well underway, CN is embarking on a large number of maintenance and construction projects to ensure we continue to run a safe railway and play a continuing role as a true backbone of the economy.”
Of the total amount, approximately C$1.4bn ($1.1bn) will be used on track infrastructure, which will include the replacement of rail, ties and other track materials, bridge improvements, as well as various branch-line upgrades.
These investments allow the company to improve the network and are part of a multi-year programme aimed at maintaining a high level of safety and efficiency while helping its customers grow.
The company is allocating C$100m ($83m) to upgrade its feeder network and this investment is part of the C$500m ($416m) programme announced earlier this year to upgrade branch lines that are experiencing rising volumes of traffic.
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This year, safety investments of the company will include additional fault detection systems such as wayside inspection system technology, hot wheel detectors, wheel impact load detectors, signalled sidings to detect broken rails, and new geometry testing and joint-bar inspection technology.
The company will also invest around C$800m ($665m) this year on growth and productivity initiatives such as yard improvements, intermodal terminals, transload and distribution centres and information technology.
Under this initiative, the company intends to take delivery of 90 new high-horsepower locomotives, as well as invest in new rolling stock and freight car refurbishments.
Mongeau said: “CN is investing in a safe, efficient railway that is building on a strong foundation, as well as building for the future in this the 20th anniversary year of our initial public offering of shares.”