(Reuters circulated the following article on November 30.)
VANCOUVER, British Columbia — Capital spending at Canadian National Railway Co. will be C$1.6 billion ($1.4 billion) next year, company officials said on Wednesday, a 4 percent increase over this year’s level.
The company, Canada’s largest railway, said major projects in the works for next year include expanding capacity on its line to Prince Rupert, British Columbia, and between Winnipeg, Manitoba, and Chicago with new or larger sidings.
A new container facility is scheduled to open in Prince Rupert in the second half of 2007, and the railway is heavily marketing the Pacific Coast port as a transit point for trade between Asia and the U.S. Midwest.
Montreal-headquartered CN Rail said C$800 million has been budgeted for basic capital maintenance, such as replacing ties and rails on its 19,200-mile (30,700 km) system, which has mainlines crossing Canada and down to the U.S. Gulf Coast.
CN Rail has come under fire from some critics in Canada who say its efforts to maintain its status as one of North America’s most efficient railways has caused safety problems — a charge the company strongly denies
Canadian National said its expects to spend C$200 million on its locomotive fleet, including the acquisition of 65 new diesel electric engines, and about C$150 million on freight cars and intermodal equipment