MONTREAL—CN has announced details of its 2016 plan to invest approximately $2.9 billion in rail infrastructure and equipment.
The plans include $1.5 billion to be spent on track infrastructure including the replacement of rail, ties, and other track materials, bridge improvements, and targeted branch line upgrades, a media statement released Feb. 10 indicated.
CN will also invest $600 million in rolling stock equipment with the goal of handling future traffic volumes and improving fuel efficiency, CN said.
The company also expects to take delivery of 90 new high-horsepower locomotives.
"Despite the current uncertain economic environment, it is a good time to harden our infrastructure because we can do the work faster and at a better price," said Claude Mongeau, president and chief executive officer, in the statement.
The spending is being undertaken in an effort to raise network efficiency, support long-term growth and further strengthen safety, the release indicated.
CN will also spend $400 million on the implementation of Positive Train Control (PTC) technology on portions of its U.S. rail network.
The technology hardware will be installed on approximately 3,500 route-miles of its network by the end of 2018, with full PTC system operability achieved by the end of 2020, as required by U.S. federal government safety legislation.
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