CN details $2.7 billion capital investment plan for 2015

CN will spend $2.7 billion this year on rail infrastructure maintenance and improvements, equipment and technology to expand capacity and improve network safety, the Class I announced yesterday. (All monetary figures are in Canadian dollars.)

The railroad provided details of its capital expenditure plan, with some projects well underway.

"CN is embarking on a large number of maintenance and construction projects to ensure we continue to run a safe railway and play a continuing role as a true backbone of the economy," said President and Chief Executive Officer Claude Mongeau in a press release.

For track infrastructure, the company will spend $1.4 billion to replace rail, ties and other track materials, improve bridges and upgrade various branch lines. The work is part of a multiyear program aimed at maintaining safety and efficiency and to help CN customers grow their business.

Within track infrastructure spending, the railroad will allocate $100 million to upgrade its feeder network. The investment is part of the $500 million program CN announced earlier this year to upgrade branch lines that are supporting high traffic volumes.

Also, CN will spend $800 million on yard improvements, intermodal terminals, transload and distribution centers and information technology related to growth and productivity initiatives.

Additionally, the company will spend $500 million on equipment, including taking delivery of 90 new locomotives, as well as new rolling stock and freight-car refurbishments.