Posts Tagged ‘CN capital spending’

CN to Spend $485M on Michigan Projects

July 8, 2022

Canadian National has announced it will spend $485 million on capital projects in eight states during 2022.

No projects are planned for Ohio or Indiana, but the Montreal-based Class 1 carrier plans to spend $55 million in Michigan.

That work includes replacement of more than 4 miles of rail; installation of approximately 50,000 new railroad ties; rebuilding 19 road crossing surfaces; and maintenance work on bridges, crossings, culverts, signal systems and other track infrastructure

In all CN plans to spend more than C$2.6 billion on its capital program systemwide.

CN Announces Michigan Capital Spending Plans

July 25, 2020

Canadian National said it will spend CA$55 million on capital improvements in Michigan this year.

Much of that money will be spent on positive train control work, expansion of an auto compound in Flint, autonomous track inspection rail cars, the replacement of rail and ties, and maintenance of bridges, crossings, culverts, signal systems and other track infrastructure.

CN said it will replace five miles of rail, install more than 105,000 crossties and rebuild 24 crossing surfaces.

In a news release, CN noted that it is the largest of three Class Is operating in Michigan and yards in Battle Creek, Escanaba, Flint, Gladstone, Port Huron and Flat Rock.

It also has a car and locomotive repair shop in Battle Creek.

One in four finished automobiles built in Michigan is moved on a CN train.

CN Net Income Falls 6% in 4th Quarter 2017

January 25, 2018

Canadian National said on Wednesday that its fourth quarter adjusted net income fell 6 percent to CA$897 million and adjusted diluted earnings per share fell by 2 percent to CA$1.20.

The financial figures include the effect of the Tax Cuts and Jobs Act approved in the United States in December.

Including the tax benefit, CN reported that quarterly net income rose 156 percent to CA$2.6 billion and diluted EPS jumped 164 percent to CA$3.48 compared with the fourth quarter of 2016.

Operating income for the quarter fell 7 percent to CA$1.3 billion, but revenue climbed 2 percent to CA$3.3 billion compared with a year ago.

Quarterly operating expenses increased 9 percent to CA$1.98 billion compared with 2016. The operating ratio was 60.4 percent, an increase of 3.8 points over 2016.

For all of 2017, CN’s adjusted net income increased 6 percent to CA$3.78 million and adjusted diluted EPS rose 9 percent to CA$4.99. Operating income increased 5 percent to CA$5.6 billion compared with the previous year.

CN’s revenue rose 8 percent year over year to CA$13 billion. Operating expenses for 2017 jumped 11 percent to CA$7.5 billion.

The operating ratio in 2017 was 57.4 percent, an increase of 1.5 points over 2016.

“Our growth continues to outpace the strengthening economy and I am pleased with the results our dedicated team generated in 2017,” said CN CEO Luc Jobin in a statement.

“Throughout the year we faced rapidly changing market demands and in the fourth quarter dealt with challenging operating conditions, including harsh early winter weather across the network, impacting our performance.”

Jobin said CN will add this year additional train crews and increase capital spending to a record CA$3.2 billion, which includes the acquisition of 60 new locomotives, expanding track capacity and improving intermodal terminals.

Capital spending will include CA$1.6 billion for track infrastructure maintenance and CA$400 million for installation of positive train control in the United States.

CN Plans to Boost Capital Spending in 2018

January 13, 2018

Canadian National plans to boost capital spending this year by greatly expanding its track capacity.

The bulk of that expansion will occur in Canada, although CN is planning to expand capacity of its route between Chicago and Winnipeg.

Jim McLeod, CN’s chief engineer, structures, design & construction, described CN’s capital spending during a presentation at the National Railroad Construction & Maintenance Association conference as moving from “steady as we go” to a cycle of “the gangbuster variety.”

This year CN will add 49 miles of double track tracking, four new sidings, and three siding expansions.

It also plans to begin renewing the St. Charles Air Line in Chicago, which is used by Amtrak trains between the Windy City and New Orleans. Some bridges on the St. Charles Air Line were built in 1899.

In total, CN plans to spent $85 million in 2018 and $100 million in 2019 on bridges.

Basic track infrastructure spending will rise from $1.18 billion in 2017 to $1.2 billion in 2018, $1.23 billion in 2019 and $1.27 billion in 2020.

The work includes replacement of 1.1 million crossties, a 20 percent increase, and replacement of 446 track miles of rail, which would be equal to what the railroad did in 2017.