Canadian Shipper


CN aims to raise network safety and efficiency, improve service, grow the business

MONTREAL,QC– CN is investing approximately C$2.1 billion in 2014 to continue to raise network safety and efficiency, improve service and grow the business, the company announced.

 “CN is committed to making continued improvements in its safety performance – infrastructure investments are critical to this, as well as to driving improvements in customer service and taking advantage of freight opportunities to grow the business at low incremental cost,” said Claude Mongeau, president and chief executive officer.

“Investments in our network and distribution capability, the acquisition of new locomotives and equipment and the enhancement of information systems and technology will help support our agenda of operational and service excellence. They will help us achieve our goal of becoming a true supply chain enabler and help our customers compete better in their markets. They will also position us to take advantage of business opportunities in intermodal, energy and other resource and manufacturing markets,” headded.

CN’s investment will include the replacement of rail, ties and other track materials, bridge improvements, as well as various branch-line upgrades. This envelope will also include funds for strategic initiatives and additional improvements to track infrastructure in western and eastern Canada as well as in the United States. In 2013, CN invested approximately C$100 million in the Edmonton-Winnipeg corridor to increase rail capacity and to support the movement of strong volumes of grain and other commodities.

CN’s equipment capital expenditures in 2014 are targeted to reach approximately C$300 million, allowing the company to tap growth opportunities and improve the quality of the fleet. To accommodate increased traffic and improve operational efficiency, CN in 2013 took delivery of 44 new and 37 second-hand high-horsepower locomotives. In 2014, CN will acquire an additional 45 new high-horsepower locomotives.

By the end of 2014, CN will have acquired 763 high-horsepower locomotives over a 10-year period – these units will represent more than one-half of CN’s high-horsepower mainline fleet. Of these acquisitions, 114 units will have alternate-current electrical (AC) traction systems. AC traction motors are more robust than direct-current ones in extreme winter conditions and improve locomotive fleet reliability.

CN also expects to spend approximately C$600 million in 2014 on facilities to grow the business, including transloading terminals, distribution centers and the completion of its Calgary Logistics Park project. This envelope also includes capital for information technology to improve service and operating efficiency, and for other projects to increase the productivity of operations, said the release.