Canadian National Railway will spend $430 million to improve its rail infrastructure in Western Canada in 2007.
The money will be spent on such things as replacement of rail, ties and other track material, bridge improvements, siding extensions and terminal yard improvements.
The railway said that in addition to regular maintenance and upgrading, it will focus on CN’s line to the new container terminal at Prince Rupert, B.C.
Funds will also be directed toward upgrading the recently acquired Athabasca Northern Railway, which serves Fort McMurray, Alta., along with some northern Alberta short lines purchased in 2006.
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No specific breakdown on how much would be spent in various areas was available.
“Our investments in rail infrastructure will ensure plant quality and safety, build capacity and speed and improve the productivity of our operations,” said Jim Vena, senior vice-president for CN’s western region.
CN’s total capital investment program for 2007 will be approximately $1.5 billion, down from last year’s $1.6 billion, with $1.1 billion directed toward track infrastructure.
That will include about $300 million in Eastern Canada and $300 million in the United States.
The company also plans to spend about $140 million on the purchase of new fuel-efficient locomotives and improvements to the existing fleet, and $250 million on facilities and technology.
CN spokesperson Mark Hallman said while the spending isn’t directed specifically at grain, the grain industry will benefit from any system-wide improvements.
The spending announcement came just weeks after the railway issued a public warning that future investment in grain-hauling infrastructure could be in jeopardy because of what it called a “disturbing trend towards reregulation” of the rail industry.
A series of recent regulatory and legislative decisions have gone against the railways. As a result, said CN, grain revenues could decline and the company may direct investment away from grain to commodities that provide a better return.
However, Hallman said those concerns are related to the long-term outlook, not short-term investment plans.
“Those concerns have had no impact on this year’s program,” he said.