CN Investing $310 Million in Ontario
30 June 2020 - 10:00PM
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 $310 million (CAD) across
Ontario in 2020. The investments will focus on intermodal
facilities, the replacement of rail and ties, as well as the
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 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 75%. The Company will continue to deploy important
safety enhancing technologies in Ontario, such as the Autonomous
Track Inspection Program, and Automated Inspection Portals.
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 $250-million Milton
Logistics Hub that will create over 1,000 direct and indirect jobs.
The project is undergoing a comprehensive independent environmental
assessment and regulatory review, including participation of local
communities and Aboriginal groups.
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: |
MediaJonathan AbecassisSenior ManagerMedia
Relations514-399-7956 |
InvestorsPaul ButcherVice-PresidentInvestor
Relations514-399-0052 |
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