Canadian National Railway plans to spend $500 million over several years improving track on its western Canadian feeder rail lines.
The money will be spent on lines in Alberta, Manitoba, and Saskatchewan that handle rising volumes of industrial products, natural resources and energy-related commodities.
About $100 million will be allocated this year for work on northern Alberta branch lines, investing in infrastructure upgrades and safety improvements, including heavier rail, crushed rock ballast and new ties. The work will ensure that the network can efficiently accommodate future freight volume growth in the Peace River region, the company said in a news release.
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A recent Reuters analysis found that trains CN operated in Canada derailed along main lines 57 times in 2014, up 73 percent from 33 in 2013 and well above a 2009-13 average of 39 accidents per year.
CN freight volumes in Western Canada have increased by more than 50 percent in the past five years.
The company spent $100 million in 2013 to increase capacity on its main line between Edmonton and Winnipeg and the secondary Prairie North Line, which runs north of the main line.
CN said in its fourth quarter 2014 report that it plans to increase its capital spending this year by $300 million for a total investment of $2.6 billion across its North American network.
