Canadian National Railway Targets C$2.7 Bln In 2015 Capital Investments

(RTTNews) - Canadian National Railway Co. (CNI, CNR.TO) announced the details of its 2015 plan to invest C$2.7 billion 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.

The company plans to spend about C$1.4 billion on track infrastructure. This will include the replacement of rail, ties and other track materials, bridge improvements, as well as various branch-line upgrades. Such investments allow CN to improve the network and are part of a multi-year program aimed at maintaining a high level of safety and efficiency while helping CN's customers grow.

Within its track infrastructure spending, CN allocates C$100 million to upgrade its feeder network. This investment is part of the C$500-million program announced earlier this year to upgrade branch lines that are experiencing rising volumes of traffic.

CN safety investments this year will include additional fault detection systems such as wayside inspection system technology, hot wheel detectors, wheel impact load detectors, signaled sidings to detect broken rails, and new geometry testing and joint-bar inspection technology.

CN will also spend approximately C$800 million in 2015 on growth and productivity initiatives such as yard improvements, intermodal terminals, transload and distribution centres and information technology.

CN's equipment capital expenditures in 2015 are targeted to reach approximately C$500 million. As part of this initiative, CN expects to take delivery of 90 new high-horsepower locomotives and will invest in new rolling stock and freight car refurbishments.