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On Friday, Canadian National Railway Co. announced its 2006 capital spending program will total about $1.3 billion, a 9 percent increase compared with the 2005 program.

CN plans to spend $690 million to replace rail, ties, ballast and other track materials, and upgrade bridges and signal systems; $280 million to purchase and upgrade locomotives, and obtain and refurbish rail cars; and $130 million to improve or build facilities, and upgrade information technology.

The Class I also expects to spend $216 million on network productivity initiatives and strategic projects, such as extending sidings in western Canada, improving the Prince Rupert, B.C., corridor and reconfiguring Johnston Yard in Memphis, Tenn.

“At close to 20 percent of revenues, CN’s capital spending plan for next year represents a significant commitment to maintain … rail infrastructure,” said CN President and Chief Executive Officer E. Hunter Harrison in a prepared statement. “More than $1 billion is targeted at maintaining the integrity and safety of our rail infrastructure, as well as strategic initiatives to increase the fluidity and efficiency of our network.”