advertisement

---

Today, Canadian Pacific announced it plans to spend between $950 million and $1.05 billion on capital expenditures in 2011. Last year, the Class I’s capex budget approached $800 million.

Major capital spending categories for 2011 include:
• $680 million for basic track infrastructure renewal;
• $200 million for volume growth, productivity initiatives and network enhancements;
• $80 million for information technology system upgrades to enhance shipment visibility and meet information needs; and
• $40 million for capital needs regulated by governments, “principally train control,” CP officials said in a prepared statement.

The 2011 capex plan will focus on gaining efficiencies through a long train strategy, and sustained repair facility and yard consolidations as business levels return, the officials said. In addition, the plan will support investments in “fast payback productivity and technology projects” to improve shipment reliability and customer service; help the railroad pursue growth and market-based opportunities, such as transload, intermodal and energy projects; and maintain investments in “digital railway" technologies designed to boost efficiency, service and safety, they said.

“With strong demand projected in many of our commodity-based businesses, this capital plan will enable us to meet our customers’ needs and continue to lower our operating ratio to create a stronger franchise for the future,” said CP Chief Financial Officer Kathryn McQuade.

In January 2010, CP announced that last year's capex budget would fall between $680 million and $730 million. But in May, the railroad announced its board had increased the budget to between $750 million and $800 million.