CN Investing $35 Million in Iowa
Investments Focused on Safety and Capacity to Strengthen Rail Network, Help Reduce Emissions, and Support Economic Growth
HOMEWOOD, Ill., July 28, 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 $35 million (USD) across Iowa in 2020. The investments will focus on the replacement of ties and maintenance of bridges, level crossings, culverts, signal systems and other track infrastructure as well as continued investments in Positive Train Control.“We take our essential role in the North American economy seriously and these investments in Iowa are a key part of our strategy to support growth. The Company remains committed to help enable supply chains that fuel Iowa’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“CN has made significant investments for years across Iowa. These investments will link us to global markets and set a firm foundation for a rapid economic recovery. CN’s rail network helps our farmers, ethanol plants and, ultimately, Iowa consumers.”
– Tim Kraayenbrink, Iowa State SenatorThe 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 across its network, such as the Autonomous Track Inspection Program, Distributed Air Cars and Automated Inspection Portals.Maintenance program highlights include: Installation of over 95,000 new railroad tiesRebuilds of 19 road crossing surfacesMaintenance work on bridges, culverts, signal systems, and other track infrastructureIowa in numbers:Capital investments: More than $200 million in the last five yearsEmployees: approximately 262Railroad route miles operated: 574Community partnerships: $47,000 in 2019Local spending: $24 million in 2019Cash taxes paid: $4 million in 2019Through CN’s subsidiary, the Chicago, Central & Pacific Railroad, CN’s rails stretch the breadth of Iowa, from the Missouri River in the west to the Mississippi in the east. CN carries a wide variety of manufactured and industrial products like food, machinery, electrical equipment, chemical products and primary metals. In addition to serving local businesses, CN’s ethanol franchise is centred in the Hawkeye State with several plants along the route between Dubuque and Sioux City and Council Bluffs.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.