MONTREAL - Canadian National Railway (TSX:CNR) plans a slight increase in capital spending to about $1.9 million this year as it moves to upgrade its railway network in both Canada and the United States.
Montreal-based CN said more than $1 billion will be spent on track infrastructure and to improve the productivity and fluidity of its network.
The investment will include replacement of rails, ties and other track materials, and bridge work, as well as capacity and productivity improvements.
The country's largest railway also expects to spend $700 million on transloading operations and distribution centres to transfer freight efficiently between rail and truck.
Among other things, it will also construct the recently-announced intermodal terminal in Joliet, Ill., and complete the Calgary Logistics Park project along as well as make improvements in information technology.
In addition, CN will target approximately $200 million in 2013 for the acquisition of locomotives, intermodal equipment and vehicles as well as locomotive and car refurbishments.
CN's capital investment program in 2012 totalled more than $1.8 billion.
"CN is committed to operating a safe and sustainable railway, making continued improvements in service and seizing traffic opportunities to grow at low incremental cost," president and CEO Claude Mongeau said.
"Infrastructure investments, the acquisition of new locomotives and equipment and the enhancement of information technology systems will help support our agenda of operational and service excellence."