CANADA: CN has announced a C$2·9bn spending plan for 2016. ‘CN is investing for the long term and we are again planning a significant capital programme in 2016 to support a safe and fluid railway network, and to raise the bar on efficiency and customer service’, said President & CEO Claude Mongeau. ‘Despite the current uncertain economic environment, it is a good time to harden our infrastructure because we can do the work faster and at a better price.’
CN plans to spend C$1·5bn on its infrastructure, including track renewals, bridge improvements and branch line upgrades. It will invest C$600m in rolling stock to enable it to ‘tap available growth opportunities’ and improve the quality of its wagon fleet. CN expects to take delivery of 90 new high-horsepower locomotives to handle future traffic and improve fuel efficiency. Productivity and service initiatives have been allocated C$400m.
A further C$400m is to be spent on the implementation of Positive Train Control in the USA, with 5 600 route-km to be completed by the end of 2018 and full deployment by the end of 2020.
‘The strength of CN's balance sheet enables us to sustain significant capital investments throughout business cycles’, said Mongeau. ‘Rail is critical to the North American economy, and our investments will allow the company to build on its long- term competitive advantage.’