CN (TSX:CNR) (NYSE:CNI) said it plans to invest $10 million across Nova Scotia in 2018 to strengthen the company’s rail network in the province, improving safety and supporting efficient service.
The investments are part of CN’s overall capital program in 2018 and will focus on the replacement, upgrade and maintenance of key track infrastructure. Planned capital work in Nova Scotia will support network safety and efficiency through:
- Installation of 6 miles of new rail
- Installation of more than 2,100 railroad ties
- Rebuilds of road crossing surfaces and maintenance work on bridges, culverts, signal systems and other track infrastructure
Michael Farkouh, vice-president of CN’s Eastern Region, said: “We are again investing in Nova Scotia to support a safe and fluid railway network. CN remains committed to investing for the long haul to raise the bar on service for our customers across the province and North America, while continuing to strengthen our infrastructure in support of our unwavering commitment to railway safety.”
CN’s Nova Scotia rail network connects the Port of Halifax container terminals with markets in central Canada and the U.S. Midwest and accesses CN’s Autoport facility that handles vehicles for distribution across North America and to Newfoundland.
“I am pleased to see CN’s continued investment in Nova Scotia. Rail is integral to many industries across our province, and safe, efficient and reliable service is key to growing our economy,” explained Darren Fisher, member of parliament for Dartmouth-Cole Harbour and chair of the Nova Scotia Caucus.
“Rail is an integral part of Nova Scotia’s transportation system and these capital investments are a sign of CN’s commitment to its operations in our province,” said Transportation and Infrastructure Renewal Minister Lloyd Hines. “CN’s networks are always welcome and support our community.”
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 to purchase 350 new lumber cars to meet growing demand to move wood products. In May, CN announced that it plans to acquire 1,000 Canadian built, new generation, high-cube grain hopper cars over the next two years to rejuvenate the aging equipment needed to serve increasing annual crop yields. This month, CN is taking delivery of the first of 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.
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 in July 2018.
Nova Scotia in numbers:
- Capital investments: Approximately $50 million in the last five years
- Employees: approximately 450 (includes 340 at Autoport, a wholly-owned CN subsidiary)
- Railroad route miles operated: 162
- Community partnerships: $217,000 in 2017
- Local Spending: $38 million in 2017
- Cash taxes paid: $3 million in 2017
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Source: Media Release