Railroad News

CN late last week announced a public debt offering of $500 million worth of 2.75 percent notes due 2026.

The railroad will use the offering's proceeds for debt refinancing, share repurchases and other general corporate purposes, CN officials said in a press release.

CN yesterday announced details of its 2016 capital spending plan that's projected to total about $2.9 billion (in Canadian dollars).

The railroad plans to spend about $1.5 billion on track infrastructure, including the replacement of rail, ties and other track materials, improvements to bridges and upgrades to targeted branch lines.
 
The Class I also expects to spend $600 million on rolling stock, including the delivery of 90 new high-horsepower locomotives in 2016.
 
Meanwhile, CN plans to invest $400 million in "a range of other key initiatives," including $400 million on the implementation of positive train control technology on portions of its U.S. rail network.

Despite an 8 percent decline in carloadings for the fourth-quarter, CN reported its fourth-quarter 2015 net income rose 11 percent to $941 million and diluted earnings per share (EPS) rose 15 percent to $1.18 (in Canadian dollars), the Class I announced yesterday.

The quarterly profit beat analysts' expectations. The railroad's operating income rose 7 percent to $1.354 billion, and the operating ratio decreased 3.5 points to 57.2 percent compared with the year-ago quarter, according to a CN press release, which reported all figures in Canadian dollars.

CN has submitted an application to the Canadian Transportation Agency for approval of the Class I's proposed logistics hub in Milton, Ontario.

The application outlines the infrastructure required for the $250 million project (in Canadian dollars) and what CN anticipates will be the economic benefits of the logistics hub, CN officials said in a press release.

CN has submitted its environmental impact statement (EIS) to the Canadian Environmental Assessment Agency (CEAA) for a proposed logistics hub to be built in Milton, Ontario, the Class I announced yesterday.

The EIS describes measures the railroad plans to adopt to lessen the environmental impact of the $250 million (in Canadian dollars) project. Those measures include:
• an approximately 1-mile private road to be constructed on CN property to avoid truck queuing on public roads;
• a new underpass to be built for Lower Base Line to minimize the impact on commuters traveling in east and west directions past the hub;
• raised earthen berms topped off with native Ontario vegetation and trees to reduce the effects of noise and blend into the natural environment of the area;
• enhancements to be made to Indian Creek's natural habitat; and
• environmentally advanced technology and design in the hub, such as solar panels, rainwater capture, natural and LED lighting.

Inadequate track conditions led to a CN train derailment near Faust, Alberta, in June 2014, the Transportation Safety Board (TSB) of Canada announced yesterday in its report.

The derailment resulted in no injuries or product release. Approximately 1,200 feet of track was damaged in the incident, however.

More than 1,500 first responders along CN's network have downloaded the AskRail mobile app to access real-time information about the contents of rail cars in their communities, the Class I announced today.

Emergency responders are the only people eligible to sign up for the app, which was developed by the Association of American Railroads. The app enables responders to view rail-car contents through a simple search, and provides railway emergency contact information and reference resources to support incident response.

CN will donate $5 million (in Canadian dollars) to assist communities with resettling thousands of Syrian refugees across Canada, the Class I announced last week.

In the coming days, the railroad will join with the Canadian Chamber of Commerce and other Canadian business leaders to direct funds to assist with the refugees' housing and other needs, CN officials said in a press release.

A wheel set issue was behind the derailment of a CN train near Brockville, Ontario, in July 2014, the Transportation Safety Board (TSB) announced in its investigation report yesterday.

The 26 derailed cars included 13 Class 111 tank cars containing aviation fuel residue. A small amount of product was released, and no injuries were reported, the TSB said in a press release.

A Canadian environmental agency has allocated funds to four applicants that want to be involved in an environmental assessment of CN's proposed intermodal and logistics hub in Milton, Ontario.

The Canadian agency allocated a total $203,122.90 (in Canadian dollars) to the following applicants: Halton Region Conservation Authority ($21,800); Milton Says No ($7,200); Mississaugas of New Credit First Nation ($95,600); and Nation Huronne-Wendat ($78,522.90), according to a press release from the agency.