Canadian National Railway Targets C$2.9 Bln In 2016 Capital Investments

(RTTNews) - Canadian National Railway Co (CNR.TO, CNI) announced the details of its 2016 plan to invest about C$2.9 billion in rail infrastructure and equipment to raise network efficiency, support long-term growth and further strengthen safety.

The company 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.

It 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. 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.