Railroad News

CN announced yesterday it has budgeted $505 million for capital projects this year in Illinois, Louisiana, Tennessee and Wisconsin.

In Illinois, CN will spend $190 million to expand and maintain its infrastructure in state. Planned expansion projects will include development of a positive train control (PTC) system and adding capacity to the Joliet Intermodal Terminal.

CN will spend CA$320 million this year on projects to expand and maintain its infrastructure in Ontario, the Class I announced yesterday.

Planned expansion project investments will include a satellite intermodal facility near CN's Brampton intermodal terminal to provide more capacity; intermodal and infrastructure at the Brampton terminal; and facility improvements at the Toronto auto compound.

CN last week announced capital expenditure plans of CA$45 million worth of projects in New Brunswick and CA$5 million in Nova Scotia this year.

In New Brunswick, CN's 2019 capex program includes installation of 8 miles of new rail and 20,000 ties, and rebuilds of road crossing surfaces and maintenance on bridges, culverts, signal systems and other track infrastructure, company officials said in a press release.

The Transportation Safety Board of Canada (TSB) has found that a broken axle on a freight car led to the January 2018 derailment of a CN train near New Hazelton, British Columbia.

The incident occurred when a CN train moving west at 29 mph experienced a train-initiated emergency brake application near New Hazelton. A subsequent inspection determined that 27 gondola cars loaded with coal derailed, with some of the product spilling into a nearby waterway.

CN, the Canadian government and Vancouver Fraser Port Authority have signed an agreement calling for upgrades to the Burrard Inlet rail corridor that serves the south shore port area in Vancouver.

The work is necessary to increase capacity on a critical segment of trade infrastructure in the Vancouver area, according to a press release. The project calls for double tracking a 2.5-mile section of rail that links expanding import and export terminals on the Burrard Inlet's south shore to the national rail network.

The "Canada's Top 100 Employers" project has recognized CN as one of Montreal's top employers, the Class I announced yesterday.

This is the third consecutive year that the railroad has been recognized by Canada's Top 100 Employers, an annual competition first published in 2006, CN officials said in a press release.

CN employees who are members of United Steelworkers Local 2004 (USW) have approved a new five-year contract, the union and Class I announced yesterday.

For the past several weeks, members have been voting on the tentative agreement reached between CN and Local 2004 in December 2018. The contract covers 3,000 USW members who inspect, maintain and repair CN's system of track, bridges and infrastructure in Canada.

Unifor Local 100 members have voted in favor of ratifying a new four-year collective agreement with CN.

The agreement — which covers 2,100 locomotive and freight-car mechanics, electricians and apprentices — represents a "breakthrough in improvements to benefits at CN," Unifor officials said in a press release.

CN yesterday reported fourth-quarter revenue of CA$3.8 billion, up 16 percent compared with fourth-quarter 2017 results.

Operating income climbed 19 percent to CA$1.4 billion and adjusted diluted earnings per share jumped 24 percent to CA$1.49. Diluted earnings in fourth-quarter 2017 included a deferred income tax recovery of CA$2.35 per share resulting from the enactment of a lower U.S. corporate income tax rate, CN officials said in a press release.

CN has met all Dec. 31 milestone deadlines in its positive train control (PTC) implementation plan, the Class I announced last week.

Last month, CN applied to the Federal Railroad Administration (FRA) for a two-year extension to complete deployment and interoperability of its PTC system, according to a press release.

CN will spend CA$210 million of its 2018 capital program to improve and expand its network in Saskatchewan.

The Class I's projects will include more than 20 miles of new double track in three locations across the province. Other capital program investments will focus on the replacement, upgrade and maintenance of key track infrastructure to improve overall safety and efficiency, CN officials said in a press release.

CN this year will spend CA$320 million to strengthen and expand its infrastructure in Alberta and CA$210 million in Quebec, the Class I announced this week.

The investments are part of CN's CA$3.4 billion capital expenditures program for 2018, CN officials said in press releases.

3/30/2017    

Rail News: Canadian National Railway - CN