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Winnipeg Free Press - PRINT EDITION
CN's capital budget $1.75B
MONTREAL -- The Canadian National Railway Co. plans $1.75 billion in capital spending this year, slightly more than last, with most of the money going to maintain and upgrade its rail network.
The Montreal-based railway said Friday more than $1 billion of its capital investment will be used for track infrastructure, including replacing ties and other track materials and bridge improvements. The company said it also plans rail-yard and technology improvements.
The increase in spending from $1.7 billion a year ago comes as Canadian National expects intensified competition from its main Canadian competitor, Canadian Pacific Railway Ltd.
Calgary-based Canadian Pacific is overhauling operations to improve efficiency.
Canadian Pacific plans to spend between $1.1 billion and $1.2 billion on capital projects this year, with about one-quarter going toward business improvements and the rest to cover maintenance costs.
Canadian National, with more than 23,000 employees, is far more profitable and operates at a lower cost than CP Rail, with nearly 17,000 employees.
CN will spend $150 million on equipment, including the acquisition of new freight cars and locomotive upgrading. CN also expects to spend about $500 million on growth opportunities and to acquire information technology.
-- The Canadian Press
Republished from the Winnipeg Free Press print edition February 18, 2012 B8
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