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Here’s a sign of the turbulent economic times: Canadian Pacific Railway plans to reduce capital spending in 2009 by about 20 percent.

The Class I expects its ’09 capex to range between $800 million and $820 million, representing a $200 million decrease compared with CPR’s and the Dakota, Minnesota & Eastern Railroad Corp.’s (DM&E) combined capital spending in 2008. The capex outlook assumes an average currency exchange rate of $1.17 per U.S. dollar.

The 2009 capex plan includes basic track infrastructure and locomotive fleet renewals, the first year of a multi-year intermodal terminal project in Regina, Saskatchewan, and pilot technology projects associated with the “Railway of the Future” program. CPR also plans to spend $100 million to upgrade the DM&E’s infrastructure.

"Canadian Pacific plans capital investment in 2009 consistent with the current economic conditions," said CPR Executive Vice President and Chief Financial Officer Kathryn McQuade in a prepared statement. "We are pacing our capital investments to match the needs of our customers, and this will result in a significant reduction in our 2009 capital spending when compared with previous years."