CN Investing $25 Million in Minnesota

Rhea-AI Summary

CN (NYSE: CNI) announced a $25 million investment in Minnesota for 2020 to enhance its rail infrastructure amid rising demand. The funds will be allocated for docks repairs, rail replacements, and maintenance of crucial transport systems. This initiative aligns with CN's commitment to supporting North American supply chains, promoting safety, and reducing GHG emissions by encouraging rail use over trucks. Notable maintenance efforts include upgrading over 10 miles of rail and installing 4,700 new ties. The company emphasizes the economic benefits of rail transport for Minnesota's recovery.

Positive

• Investment of $25 million to enhance rail infrastructure.
• Focus on safety and efficiency through infrastructure upgrades.
• Promotes reduction in GHG emissions by shifting freight from trucks to rail.

Negative

• None.

HOMEWOOD, Ill., July 29, 2020 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) announced today that, as part of its strategic investments to support growing demand and enable supply chains, it plans to invest approximately $25 million (USD) across Minnesota in 2020. The investments will focus on docks repairs, replacement of rail and ties, maintenance of bridges, level crossings, culverts, signal systems and other track infrastructure.

“We take our essential role in the North American economy seriously and these investments in Minnesota are a key part of our strategy to support growth. The Company remains committed to help enable supply chains that fuel Minnesota’s growth as we are a critical part of getting everyday goods to markets and consumers. Safety is a core value at CN and by investing in the maintenance and expansion of our track and capacity, we are providing customers with a safe and reliable solution at a time when fluid supply chains are more critical than ever.”
      -      Derek Taylor, Vice-President, Eastern Region at CN

“Investment in rail transportation infrastructure is critical to long-term economic growth and jobs across Minnesota. CN’s sustained commitment to robust freight rail investment and continued partnership will go a long way as Minnesota charts a bold path to economic recovery.”
      -      Margaret Anderson Kelliher, Minnesota Department of Transportation Commissioner

The Company’s investments will create greater capacity, which supports reductions in its customer’s transportation supply chain GHG emissions, by encouraging the use of rail for long haul needs. This reduces emissions, traffic congestion, accidents and burdens on public transportation infrastructure as one freight train can replace over 300 trucks from roads. Moving freight by rail instead of truck reduces GHG emissions by 75%. The Company will continue to deploy important safety enhancing technologies across its network, such as the Autonomous Track Inspection Program, Distributed Air Cars and Automated Inspection Portals.

Maintenance program highlights include:

• Replacement of more than 10 miles of rail
• Installation of over 4,700 new railroad ties
• Rebuilds of 10 road crossing surfaces
• Maintenance work on docks, culverts, signal systems, and other track infrastructure

Minnesota in numbers:

• Capital investments: More than $175 million in the last five years
• Employees: approximately 512
• Railroad route miles operated: 426
• Community partnerships: $90,000 in 2019
• Local spending: $129 million in 2019
• Cash taxes paid: $13 million in 2019

The North Star State is home to CN’s Iron Ore Supply Chain, which brings taconite pellets from the Minnesota Iron Range mines to the CN docks in Duluth and Two Harbors. There, the pellets are loaded onto Great Lakes ships for transport to the lower Great Lakes. CN’s major facilities in Minnesota include an intermodal terminal in Duluth, a rail classification yard and railcar/locomotive repair shop in Proctor, a yard near the Two Harbors iron ore dock, and the Duluth iron ore dock itself.

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. 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.

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.

Contacts:
Media	Investors
Jonathan Abecassis	Paul Butcher
Senior Manager	Vice-President
Media Relations	Investor Relations
(514) 399-7956	(514) 399-0052

FAQ

What is the purpose of CN's $25 million investment in Minnesota?

CN's investment aims to enhance rail infrastructure, including repairs and maintenance, to support growing demand and efficient supply chains.

How does CN's infrastructure investment impact GHG emissions?

By encouraging rail transport over trucks, CN's investment is expected to reduce GHG emissions significantly, lowering traffic congestion and environmental impact.

What specific improvements will CN make in Minnesota?

CN plans to replace over 10 miles of rail, install more than 4,700 new ties, and maintain docks and other critical track infrastructure.

How much has CN invested in Minnesota over the last five years?

CN has invested more than $175 million in Minnesota over the past five years to bolster rail infrastructure.

What is the significance of rail transport for Minnesota's economy?

Rail transport is critical for economic growth and job creation in Minnesota, facilitating the efficient movement of goods.