A press release from Canadian National Railway; July 11, 2018:
TORONTO, July 11, 2018 (GLOBE NEWSWIRE) — CN (TSX:CNR) (NYSE:CNI) said today it plans to invest approximately $315 million in Ontario in 2018 to expand and strengthen the company’s rail network across the province.
“We are investing for the long haul with these projects to boost capacity and network resiliency to meet growing demand across our economy,” said Michael Farkouh, vice-president of CN’s Eastern Region. “Our investments in track and intermodal yard capacity combined with new equipment will help us deliver superior service to our customers in Ontario and North America. Additionally, our substantial investments to renew our existing railway infrastructure underscores our commitment to operating safely.”
The Ontario investments are part of CN’s record $3.4 billion capital program for 2018. They include a new train passing siding in CN’s transcontinental corridor through Northern Ontario linking Toronto and Winnipeg, and intermodal rail yard expansions that will improve efficient movement of containers into and out of the Greater Toronto and Hamilton Area (GTHA). Other capital program elements will focus on the replacement, upgrade and maintenance of key track infrastructure to improve overall safety and efficiency.
“I applaud CN’s investment in important railway infrastructure across Ontario,” said Navdeep Bains, the Canadian minister of innovation, science and economic development. “These investments will help connect Canadians by improving transportation and will maintain and expand CN’s workforce of nearly 4,000 Ontarians.”
“This is good news for Ontario and for Ontario jobs,” said Doug Ford, premier of Ontario. “It is particularly good news for the communities, businesses and jobs that depend on our natural resource and manufacturing sectors. I applaud CN for walking the walk and sending a clear signal to the world that it’s a great time to invest in our province. Ontario is open for business.”
Planned expansion projects include:
- Investments in a satellite intermodal facility near CN’s Brampton Intermodal Terminal to provide temporary capacity
- Intermodal equipment and infrastructure at CN’s Brampton Intermodal Terminal to serve growing cold supply chain business
- Construction of a new train passing siding east of Sioux Lookout
Maintenance program highlights include:
- Replacement of approximately 90 miles of rail
- Installation of more than 380,000 new railroad ties
- Rebuilds of approximately 60 road crossing surfaces
- Maintenance work on bridges, culverts, signal systems and other track infrastructure
CN’s Ontario rail network stretches across the province, and the GTHA is home to MacMillan Yard, CN’s largest rail car classification facility, and Brampton Intermodal Terminal, CN’s largest intermodal facility. The Ontario network reaches other terminals across Canada’s industrial heartland, from Thunder Bay to Sarnia.
“The Ontario Chamber of Commerce is pleased to see CN make such a significant investment in Ontario communities,” said Rocco Rossi, president and chief executive officer of the Ontario Chamber of Commerce. “It is investments like CN’s that will help ensure Ontario is prosperous and competitive globally. We are proud that CN is leading the way in supporting communities across the province.”
CN investing for the long haul
Across its network, CN continues to invest in trade-enabling infrastructure and equipment. Earlier this year, CN announced plans to acquire 350 new box cars to serve forest products and metals customers, and that it will purchase 350 new lumber cars from National Steel Car in Hamilton to meet growing demand to move wood products. Last month, CN announced that it plans to acquire 1,000 new generation, high-cube grain hopper cars over the next two years, also from National Steel Car in Hamilton, to rejuvenate the aging equipment needed to serve increasing annual crop yields.
CN has taken delivery of 10 of the 60 new GE locomotives due in service in 2018. The balance of a multi-year, 200-unit order will be brought online in 2019 and 2020.
After adding hundreds of conductors to the field so far this year, CN continues to hire in Ontario and across Canada. Approximately 1,250 new qualified conductors will be in the field network-wide before next winter, compared to heading into the previous winter.
CN is also pleased to announce the establishment of a new, two-year Management Trainee Program designed to provide a solid operational background for the railway’s next generation of leaders. Over the course of the program, trainees will learn how CN operates and gain exposure to the company’s business agenda of operational and service excellence for its customers across North America. Successful graduates will be placed in full-time, permanent management positions aligned with individual educational background and experience. The first 50 trainees, from both Canada and the United States, will start this summer.
Ontario in numbers:
- Capital investments: more than $1.2 billion in the last five years
- Employees: approximately 3,600
- Railway route miles operated: 2,510
- Community partnerships: $4.6 million in 2017
- Local spending: $2.2 billion in 2017
- Cash taxes paid: $114 million in 2017
Forward-Looking Statements
Certain statements included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words.
Forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company to be materially different from the outlook or any future results or performance implied by such statements. Accordingly, readers are advised not to place undue reliance on forward-looking statements. Important risk factors that could affect the forward-looking statements include, but are not limited to, the effects of general economic and business conditions; industry competition; inflation, currency and interest rate fluctuations; changes in fuel prices; legislative and/or regulatory developments; compliance with environmental laws and regulations; actions by regulators; increases in maintenance and operating costs; security threats; reliance on technology and related cybersecurity risk; trade restrictions or other changes to international trade arrangements; transportation of hazardous materials; various events which could disrupt operations, including natural events such as severe weather, droughts, fires, floods and earthquakes; climate change; labor negotiations and disruptions; environmental claims; uncertainties of investigations, proceedings or other types of claims and litigation; risks and liabilities arising from derailments; timing and completion of capital programs; and other risks detailed from time to time in reports filed by CN with securities regulators in Canada and the United States. Reference should be made to Management’s Discussion and Analysis in CN’s annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN’s website, for a description of major risk factors.
Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
CN is a true backbone of the economy whose team of approximately 25,000 railroaders transports more than C$250 billion worth of goods annually for a wide range of business sectors, ranging from resource products to manufactured products to consumer goods, across a rail network of approximately 20,000 route-miles spanning Canada and mid-America. CN – Canadian National Railway Company, along with its operating railway subsidiaries – serves the cities and ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth, Minn./Superior, Wis., and Jackson, Miss., with connections to all points in North America. For more information about CN, visit the company’s website at www.cn.ca.