CN is investing heavily in its Western Canada infrastructure.
MONTREAL, Que. — CN Railway is increasing its capital spending by 4% to $1.6 billion next year to accommodate an expected increase in freight volumes.
The railway will invest $1.6 billion in 2007, including $350 million on tracks in Western Canada. The company is increasing its capital spending as it expects growing trade volumes with Asia.
Among the projects are: Extended sidings and double-stack clearances on the railway’s BC North Line which will be used to move container traffic from the Prince Rupert Intermodal Terminal; increased capacity between Winnipeg and Chicago; and continued upgrading of the freight car classification yard in Memphis, Tenn.
CN will spend about $350 million on new equipment next year, including the purchase of 65 new locomotives. About $150 million will be spent on freight cars and intermodal equipment, the company announced.
“CN’s 2007 Capex program equal to almost 20% of our revenues represents a major commitment to running a safe, efficient and productive railway for our customers and the communities in which we operate,” CEO E. Hunter Harrison said.
– With files from the Canadian Press
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