CN reveals 2017 capex plans

CN plans to spend 2.5 billion Canadian dollars on its 2017 capital program to improve core infrastructure, the Class I announced yesterday.

Consistent with last year's investment, the railroad will spend about CA$1.6 billion on track infrastructure, including the replacement of 2.2 million rail ties, installation of more than 600 miles of new rail, work on bridges, branch line upgrades and other general track maintenance, according to a CN press release.

In addition, the Class I will invest CA$400 million this year on positive train control (PTC) implementation along parts of its U.S. network. The railroad will install the hardware on 3,500 route-miles. CN plans to invest US$1.2 billon on the entire PTC project by 2020.

Moreover, CN officials anticipate spending CA$500 million on equipment, projects and information technology initiatives to serve growing business, improve service for customers and advance safety, they said. That spending includes planned growth investments to capitalize on Canadian West Coast port expansions, key customer projects and safety technology investments such as wayside inspection systems and track testing vehicles.

"We once again are investing with a focus on advancing safety, service and productivity through infrastructure maintenance, strategic growth initiatives and new technology," said CN President and Chief Executive Officer Luc Jobin.