Archive for February 5th, 2013
Canadian National Railway today announced that it plans to invest about C$1.9 billion (about US$1.9 billion) in 2013 to upgrade and maintain its railway network and enhance and expand the business.
The company will invest in infrastructure, acquire new locomotives and equipment and improvement information technology systems, said Claude Mongeau, CN’s president and CEO, in a written statement.
More than $1.0 billion will be spent on track infrastructure, including the replacement of rail, ties and other track materials and bridge work, as well as capacity and productivity improvements. CN will continue its extended siding program in northern British Columbia, Alberta and northern Ontario; double-track portions of its mainline in Saskatchewan and add new signals on its Alberta main line; and continue improvements at Kirk Yard in Gary, Ind., and the former Elgin, Joliet and Eastern Railway line, and increase yard capacity and add sidings in the Baton Rouge, La., region.
The company also plans to spend $702.2 million on business expansion, including investments in transloading operations and distribution centers to transfer freight between rail and truck; construction of the intermodal terminal in Joliet, Ill., and the completion of the Calgary Logistics Park project; and IT.
Additionally, CN intends to spend $200.6 million on new locomotives, intermodal equipment and vehicles, as well as locomotive and car refurbishments. The company expects to take delivery of 40 new and 37 second-hand high-horsepower locomotives over the next two years.
Canadian National Railway has settled its differences with Canadian Pacific Railway and its former CEO Hunter Harrison concerning CP’s hiring of Keith Creel as president and chief operating officer. Creel is CN’s former executive vice president and chief operating officer.
The settlement ends the outstanding litigation between CN and CP before the federal court in Chicago. As part of the settlement, CP has agreed not to hire certain CN employees until Dec. 31, 2016. Other terms of the settlement remain confidential.
CN also announced that it will replace Creel as executive vice president and chief operating officer shortly.