A press release from Canadian National Railway; March 18, 2019:
SASKATOON,
Saskatchewan, March 18, 2019 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE:
CNI) said today it plans to invest more than $245 million in
Saskatchewan in 2019 to expand and strengthen the company’s rail network
across the province.
“Following a record capital program in 2018, CN brought on 25% more qualified train conductors in Western Canada and added over 10% more active high horse power locomotives to its network. This year, CN is investing $35M more than last year to bring greater capacity to CN’s mainline to benefit all commodities,” said Doug Ryhorchuk, vice-president of CN’s Western Region.
The Saskatchewan investments are part of CN’s 2019 record $3.9 billion capital investment focused on enabling growth from all commodity segments, including consumer goods, grain, agricultural, forest, and energy products from all of our customers, safely and efficiently. Over two years, CN will have made a $7.4B capital investment.
“Whenever one company invests a quarter billion dollars into Saskatchewan, that’s great news. And the fact that this investment by CN will help get our key export products to market faster makes the benefit even greater. This investment continues to demonstrate CN’s commitment to our province and their customers who do business here,” said Steve McLellan, CEO of the Saskatchewan Chamber of Commerce.
“The Regina & District Chamber of Commerce is pleased that CN will continue to invest in Saskatchewan thereby ensuring that Saskatchewan goods and products continue to have access to an ever increasing global market. Access to markets, particularly international, are vital to Saskatchewan’s economy today and will be increasingly so well into the future,” said John Hopkins, Chief Executive Office of the Regina & District Chamber of Commerce.
CN is currently deploying important safety enhancing technologies across its network, such as Autonomous Track Inspection Program, Distributed Air Cars, and Automated Inspection Portals. These innovations, combined with CN’s investments in locomotives, capacity, infrastructure, and train crews, will support the safe and efficient movement of our customers’ goods to their end markets.
“Rail links are very important to Saskatchewan business. Connections to diverse markets are essential for our businesses to prosper and grow,” said Darla Lindbjerg, CEO of the Greater Saskatoon Chamber of Commerce. “CN’s commitment to our city and the province is commendable. Over five hundred employees are based out of Saskatoon and the company continues to make important investments such as this in Saskatchewan year over year. CN is a very important driver for our local and provincial economy.”
Planned expansion projects include:
- Construction of about 10 miles of double track between near Atwater, east of Melville;
- Construction of about 10 miles of double track near Fenwood, west of Melville;
- Construction of about 8 miles of double track near Biggar, west of Saskatoon; and
- Construction of about 7 miles of double track near Clavet, southeast of Saskatoon.
Maintenance program highlights include:
- Replacement of approximately 66 miles of rail
- Installation of approximately 260,000 new railroad ties
- Rebuilds of 21 road crossing surfaces
- Other maintenance work on culverts, signal systems, and additional track infrastructure
CN’s Saskatchewan rail network connects agricultural customers across the Prairies to worldwide markets and has major terminals in Saskatoon, Regina, and Melville.
Saskatchewan in numbers:
- Capital investments: Approximately $700 million in the last five years
- Employees: approximately 1,300
- Railroad route miles operated: 1,937
- Community partnerships: $308,000 in 2018
- Local spending: $160 million in 2018
- Cash taxes paid: $44 million in 2018
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 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, transporting 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.