CN Investing $310 Million in Ontario
CN (CNI) announced an investment of approximately $310 million CAD in Ontario for 2020, focusing on enhancing intermodal facilities and maintaining critical rail infrastructure. This initiative aims to support supply chains and foster economic growth in the region. Key maintenance activities include replacing over 60 miles of rail and installing 195,000 new railroad ties. These investments are projected to improve operational efficiency and promote a safer, more reliable rail network, crucial for Ontario's economy.
- Investment of approximately $310 million CAD in Ontario supports economic growth.
- Enhancements to intermodal facilities and infrastructure improve operational efficiency.
- Projected reduction of GHG emissions by 75% by shifting freight from trucks to rail.
- None.
TORONTO, June 30, 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
“We take our essential role in the North American economy seriously and these investments in Ontario are a key part of our strategy to support growth. The Company remains committed to help enable supply chains that fuel Ontario’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
“Remaining committed to supporting Canadian businesses, our government continues to invest in Canada’s economy to encourage economic growth. We are pleased to see companies such as CN do their share by investing in improving safety, growing its capacity and enabling trade through a safe and reliable rail network. Ontario’s economy requires a fluid rail network to support the movement of consumer goods as well as vehicles and mining products. CN’s investments in the province will enable new supply chains and support existing ones.”
- The Honourable Marc Garneau, Minister of Transport, Government of Canada
“CN’s investment will improve the safety and efficiency of its operations in Ontario. Keeping Ontario’s supply chains open and moving has never been more important and will continue to be essential in ensuring that we are prepared for the future and into our economic recovery.”
- The Honourable Vic Fedeli, Minister of Economic Development, Job Creation and Trade, Government of Ontario
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
Maintenance program highlights include:
- Replacement of more than 60 miles of rail
- Installation of approximately 195,000 new railroad ties
- Rebuilds of 86 road crossing surfaces
- Maintenance work on bridges, culverts, signal systems, and other track infrastructure
Ontario in numbers:
- Capital investments: Approximately
$1.4 billion in the last five years - Employees: approximately 3,970
- Railroad route miles operated: 2,541
- Community partnerships:
$5.2 million in 2019 - Local spending:
$2.8 billion in 2019 - Cash taxes paid:
$145 million in 2019
Large volumes of traffic are handled in Ontario, much of it at MacMillan Yard – CN’s largest rail classification facility and our only hump yard in Eastern Canada. Mac Yard also has railcar and locomotive repair shops. Intermodal containers are handled at CN’s biggest terminal in Brampton. The Toronto area also boasts a distribution facility for automobiles, one for forest products, two for metals, a logistics park, and two CargoFlo bulk handling facilities. In addition, CN has forest products and metals distribution centres in Brockville, a forest products distribution centre in Atikokan, and an automotive distribution centre in Windsor.
CN has proposed to build a
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
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FAQ
What is CN's planned investment in Ontario for 2020?
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