CN to invest $310M in Ontario in 2020
CN announced on June 30 that it intends to invest as much as $310 million in a variety of projects across its Ontario infrastructure network this year.
Highlights of the maintenance program include the replacement of nearly 100 kilometres of rail lines, the installation of approximately 195,000 new railroad ties, the reconstruction of 86 road crossing surfaces, and a variety of maintenance work on bridges, 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,” said Derek Taylor, CN’s vice-president, Eastern Region. “We remain 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. 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.”
CN’s investments will create greater capacity, which in turn will help reduce its customers’ greenhouse gas emissions. Moving freight by rail instead of truck, says CN, reduces GHG emissions by 75 percent. A single freight train can replace over 300 trucks from roads.
“CN’s investment will improve the safety and efficiency of its operations in Ontario,” said Ontario’s Minister of Economic Development, Job Creation and Trade, Vic Fedeli. “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.”
In addition this work, and capital investment of approximately $1.4 billion over the past five years, CN has proposed construction of a $250-million truck and rail hub in Milton.
The hub, which was proposed in 2015, is a 400-acre project that includes a new mainline rail, which will double the existing track line and add over 20 kilometers of new rail yard track. The facility will operate 24 hours a day, seven days a week and result in at least 1,600 truck trips to and from the facility each day. The proposed location for the project is within one kilometre of approximately 34,000 current and future residents, one hospital, 12 schools and two long-term care homes.
The project is undergoing a comprehensive independent environmental assessment and regulatory review, including participation of local communities and Aboriginal groups. It was dealt a blow last February when a federal review panel struck by the several Halton municipalities, including the City of Burlington, the Town of Halton Hills, the Town of Milton and the Town of Oakville concluded that the project is likely to cause significant effects on human health.
The matter is now before the federal cabinet for review. A decision on the matter was expected by the end of June, but on April 3, the Minister of the Environment and Climate Change extended the timeline for a decision by 90 days, due to the COVID-19 pandemic.