March 26, 2008

Transportation Infrastructure

Canadian National Railway plans $430-million in capital investment spending in 2008

RICHARD GILBERT

staff writer

Canadian National Railway (CN) plans a multi-million dollar investment to upgrade and maintain track and improve rail infrastructure in Western Canada in 2008.

CN announced last week that the company will spend $430 million in capital investment on infrastructure projects to grow its business and permit more efficient movement of traffic in the Western Region. The investment will be targeted toward the replacement of rail, ties and other track materials, and bridge improvements.

“We have no specific construction information yet. We are only talking about large regional envelopes at the moment,” said Mark Hallman, CN director of communications and media.

“This work will be done largely in house. We will have more specific details on construction next month.”

The company will invest in extended sidings and terminal improvements in Western Canada, including the line to the new Port of Prince Rupert container terminal.

The recently acquired Athabasca Northern Railway, which terminates near Fort McMurray and is an important link to Alberta’s oilsands, will also be upgraded.

In addition, CN will continue upgrading other former Northern Alberta short lines purchased in 2006.

“Our investments in rail infrastructure will ensure plant quality and safety, build capacity and speed, and improve the productivity of our operations,” said Jim Vena, senior vice-president, Western Region.

CN’s Western Region capital program is part of a plan to invest about $1.5 billion (Canadian) company-wide in 2008, of which more than $1.1 billion will be focused on track infrastructure.

Equipment spending, targeted to reach about $140 million in 2008, will include the acquisition of new fuel-efficient locomotives, as well as improvements to the existing fleet. CN also expects to spend about $250 million on facilities to grow the business, including transloads and distribution centers, information technology to improve service and operating efficiency, and other projects to increase productivity.

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