CN outlines spending plans in 2008
CN plans capital spending of about $1.5 billion in 2008, including $300 million in the United States.
The projects will include completion of the multi-year $100-million upgrade of Johnston Yard in Memphis in 2008, and investment in other terminals and new and extended sidings to permit more efficient operations.
Equipment spending, targeted to reach about $140 million in 2008, will include the acquisition of new fuel-efficient locomotives, as well as improvements to the existing fleet.
CN also expects to spend about $250 million on facilities to grow its business, including transloads and distribution centers, information technology to improve service and operating efficiency, and other projects to increase productivity.
Excluded from the 2008 capital spending program is CN’s proposed $100-million upgrading plan for the Elgin, Joliet & Eastern Railway. CN announced in September 2007 an agreement to acquire the EJ&E for $300 million. The transaction is subject to regulatory approval.
In Canada, CN plans to invest in the continuing reconfiguration of MacMillan Yard north of Toronto to permit more efficient terminal operations. MacMillan is the largest freight car classification yard on the CN system.
CN outlines spending plans in 2008