CN announces $350M investment in Ontario infrastructure
CN says it will invest $350 million in its Ontario rail infrastructure over the course of the remainder of 2021.
The announcement comes as part of the rail company’s planned $3-billion capital investment plan. Its work this year will focus on technology, capacity and infrastructure maintenance with a view to enhancing safety and network fluidity.
“CN’s continued investment into its rail infrastructure is good news for Ontario. Rail service is critical to many Ontario supply chains,” said provincial Transportation Minister Caroline Mulroney. “CN is an important freight transportation company that moves goods needed by Ontarians.”
Highlights of the company’s maintenance program include replacing about 100 kilometres of track, installing approximately 176,000 new railroad ties; rebuilding 85 road-crossing surfaces; and performing maintenance work on bridges, culverts, signal systems, and other track infrastructure.
The company has invested more than $1.4 billion in its capital stock in Ontario in the past five years.
In May, CN announced that it had reached a $33-billion merger agreement with Kansas City Southern, a rail carrier with networks throughout the United States, Mexico and Panama.
In the merger is approved by the U.S. Surface Transportation Board, the combined company promises to create faster, more direct routes from Canada into such major American ports as Mobile Alabama, and New Orleans, as well as into Laredo, Mexico and beyond.
“Our consistent and proactive infrastructure investment strategy and the essential work of our employees and supply chain partners are what enable CN to keep the economy moving safely and smoothly year after year,” said Derek Taylor, Vice-President, Eastern Region at CN. “As we look to the future, we are excited about the opportunity to do even more for our customers, employees, communities and shareholders through our end-to-end, pro-competitive combination with Kansas City Southern, which will connect North America and build the premier railway for the 21st Century.
Featured image: CN Train. (CN Rail)