CN Investing $310 Million in Ontario
TORONTO, June 30, 2020 (GLOBE NEWSWIRE) — CN (TSX: CNR) (NYSE: CNI) announced today that, as part of its strategic investments to support growing demand and enable supply chains, it plans to invest approximately $310 million (CAD) across Ontario in 2020. The investments will focus on intermodal facilities, the replacement of rail and ties, as well as the maintenance of bridges, level crossings, 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. The Company remains 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. Safety is a core value at CN and 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.”
- Derek Taylor, Vice-President, Eastern Region at CN“Remaining committed to supporting Canadian businesses, our government continues to invest in Canada’s economy to encourage economic growth. We are pleased to see companies such as CN do their share by investing in improving safety, growing its capacity and enabling trade through a safe and reliable rail network. Ontario’s economy requires a fluid rail network to support the movement of consumer goods as well as vehicles and mining products. CN’s investments in the province will enable new supply chains and support existing ones.”
- The Honourable Marc Garneau, Minister of Transport, Government of Canada“CN’s investment will improve the safety and efficiency of its operations in Ontario. 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.”
- The Honourable Vic Fedeli, Minister of Economic Development, Job Creation and Trade, Government of OntarioThe Company’s investments will create greater capacity, which supports reductions in its customer’s transportation supply chain GHG emissions, by encouraging the use of rail for long haul needs. This reduces emissions, traffic congestion, accidents and burdens on public transportation infrastructure as one freight train can replace over 300 trucks from roads. Moving freight by rail instead of truck reduces GHG emissions by 75%. The Company will continue to deploy important safety enhancing technologies in Ontario, such as the Autonomous Track Inspection Program, and Automated Inspection Portals.Maintenance program highlights include: Replacement of more than 60 miles of railInstallation of approximately 195,000 new railroad tiesRebuilds of 86 road crossing surfacesMaintenance work on bridges, culverts, signal systems, and other track infrastructureOntario in numbers:Capital investments: Approximately $1.4 billion in the last five yearsEmployees: approximately 3,970Railroad route miles operated: 2,541Community partnerships: $5.2 million in 2019Local spending: $2.8 billion in 2019Cash taxes paid: $145 million in 2019 Large volumes of traffic are handled in Ontario, much of it at MacMillan Yard – CN’s largest rail classification facility and our only hump yard in Eastern Canada. Mac Yard also has railcar and locomotive repair shops. Intermodal containers are handled at CN’s biggest terminal in Brampton. The Toronto area also boasts a distribution facility for automobiles, one for forest products, two for metals, a logistics park, and two CargoFlo bulk handling facilities. In addition, CN has forest products and metals distribution centres in Brockville, a forest products distribution centre in Atikokan, and an automotive distribution centre in Windsor.CN has proposed to build a $250-million Milton Logistics Hub that will create over 1,000 direct and indirect jobs. The project is undergoing a comprehensive independent environmental assessment and regulatory review, including participation of local communities and Aboriginal groups.Forward-looking statements
Certain statements included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. The Company cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words. Forward-looking statements are not guarantees of future performance and involve risks, uncertainties and other factors, which may cause the actual results or performance of the Company to be materially different from the outlook or any future results or performance implied by such statements. Reference should be made to Management’s Discussion and Analysis in CN’s annual and interim reports, Annual Information Form and Form 40-F, filed with Canadian and U.S. securities regulators and available on CN’s website, for a description of major risk factors.CN is a true backbone of the economy, transporting more than C$250 billion worth of goods annually for a wide range of business sectors, ranging from resource products to manufactured products to consumer goods, across a rail network of approximately 20,000 route-miles spanning Canada and mid-America. CN – Canadian National Railway Company, along with its operating railway subsidiaries – serves the cities and ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the metropolitan areas of Toronto, Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth, Minn./Superior, Wis., and Jackson, Miss., with connections to all points in North America. For more information about CN, visit the Company’s website at www.cn.ca.