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Yesterday, Canadian Pacific announced that its 2012 capital plan calls for spending between $1.1 billion and $1.2 billion on infrastructure renewal, network enhancements and expansion projects. Last year, the Class I budgeted between $950 million and $1.05 billion for capital expenditures.

Part of a multi-year investment plan, the 2012 capital plan will focus on “strategic and targeted investments” to improve service and increase network capacity, as well as fund business development and other initiatives, CP officials said in a prepared statement.

Major capex categories include: $800 million to replace or renew depleted assets; $275 million to expand network capacity and fund business development projects and productivity initiatives; and $50 million to address government regulations, primarily train control.

“We are executing our accelerated multi-year investment plan to further improve service reliability, asset velocity and operational efficiency, while expanding capacity to safely and efficiently support higher volumes,” said CP President and Chief Executive Officer Fred Green. “We are confident that the investments we are making under our 2012 capital plan will allow us to achieve a low-70s operating ratio in the next three years.”