Railroad News

CN yesterday and today continued to roll out its 2020 capital expenditure budgets for various states, including $125 million targeted for infrastructure projects in Illinois, $35 million in Iowa, $30 million in Tennessee and $25 million in Minnesota.

In Illinois, CN's investments will focus on replacing the St. Charles Air Line Bridge over the Chicago River in Chicago. In addition, the Class I will replace 9 miles of rail, install over 180,000 new ties, rebuild 45 grade crossing surfaces and perform maintenance work on bridges, culverts, signal systems and other track infrastructure.

CN announced today it will spend $60 million across Louisiana and $50 million across Mississippi on infrastructure projects this year.

In Louisiana, the dollars will go toward a multiyear project to rebuild the McComb Spillway Bridge. In addition, crews will replace 6 miles of rail, install 20,000 new ties, rebuild 21 grade crossing surfaces, and perform maintenance work on bridges, crossings, culverts, signaling and track.

CN announced this week it will invest nearly CA$1.3 billion this year in capital expenditures on infrastructure in the provinces of British Columbia, Ontario, Alberta and Quebec.

In British Columbia, the CA$445 million investment will include expansion projects that will add track in yards and new sidings. CN also will continue spending on multiyear initiatives to increase capacity at the Port of Vancouver and the Port of Prince Rupert in collaboration with the Canadian government, the Vancouver Fraser Port Authority and the Prince Rupert Port Authority.

CN will invest CA$305 million in Alberta and CA$235 million in Quebec this year to strengthen its rail network, the Class I announced last week.

In Alberta, capital expenditures will include expansion projects such as the construction of double track to allow more trains to pass on CN's mainline. The maintenance program will focus on the replacement of 71 miles of rail, installation of 210,000 new ties, rebuilding of 28 grade crossing surfaces, and maintenance work on bridges, culverts, signal systems and other track infrastructure.

CN announced yesterday that three vessels carrying Canadian propane destined for international markets departed from the AltaGas Ridley Island Propane Export Terminal in British Columbia, beating a previous record by 50 percent.

The Ridley Island terminal exclusively uses CN's network to transport propane from Alberta and British Columbia for export to global markets. Since it launched in 2019, the terminal has moved more than 1 million metric tons of propane, CN officials said in a press release.

CN yesterday posted "solid" first-quarter 2020 financial and operating results, despite experiencing rail blockades and the start of a global pandemic and recession during the period.

The Class I reported revenue remained flat at CA$3.5 billion during the quarter compared with the year-ago period. Diluted earnings per share (EPS) rose 31 percent to CA$1.42, while adjusted diluted EPS increased 4 percent to CA$1.22, compared with Q1 2019.

CN announced today that it has started calling back most of its employees who were temporarily laid off in Eastern Canada because of protest blockades on its rail lines over the past few weeks.

The employees are being called back to work in the absence of significant blockades on its network over the past four days, CN officials said in a press release.

CN is temporarily laying off about 450 employees in its Eastern Canada operations after canceling more than 400 trains over the past week in response to protest blockades along its rail line, Canadian news media reported yesterday.

The layoffs will affect operational staff, including employees working at Autoport in Eastern Passage, Moncton, Charny and Montreal, according to news reports.

CN officials announced the company supports the decision by Canada's Transport Minister Marc Garneau to amend his Feb. 7 order that restricted the speed of trains hauling dangerous goods on all of the nation's railway networks.

The initial order reduced by at least a third CN's overall network capacity for all trains, even those not carrying dangerous goods, CN officials said in a press release.

CN yesterday announced it has initiated a "disciplined and progressive" shutdown of its operations in Eastern Canada until protest blockades on its lines in Ontario are removed, company officials said in a press release.

The shut down will include stopping and securing all trans-continental trains across its Canadian network, including intercity VIA Rail service. The Metrolinx and Exo commuter-rail services will not be impacted, CN officials said.

CN announced yesterday it will shut down significant parts of its Canadian rail network imminently unless protest blockades on its lines are removed.

The blockades are disrupting passenger-rail travel as well as Canadians' ability to move goods and enable trade, CN officials said in a press release.