- Canadian railway company, CN (TSX:CNR) is planning to invest approximately C$310 million into the province of Ontario during 2020
- The investment will go towards maintaining and improving the infrastructure of the company's track network in the province
- The work will include replacing rail, installing new railroad ties, rebuilding road crossing surfaces, and general maintenance work
- This is the latest in a spate of investments which CN has announced this week for other Canadian provinces
- CN (CNR) is up 0.21 per cent and is currently trading at $119.16 per share
Canadian railway company, CN (TSX:CNR) is planning to invest approximately C$310 million into the province of Ontario during 2020.
The company’s investment will go towards maintaining and improving its track network and related infrastructure. This will include replacing over 60 miles of rail, rebuilding 86 road crossing surfaces, and installing approximately 195,000 new railroad ties.
The investment will also assist with general maintenance work on bridges, intermodal facilities, level crossings, culverts, and signal systems.
CN believes that this injection of money will help to reduce the greenhouse gas emissions of its customers’ transportation supply chain. A strong rail system can cater to long haul transportation needs, and reduce the burden on public transportation infrastructure.
One freight train can replace over 300 trucks on roads, thereby reducing emissions, traffic congestion, and vehicular accidents. Moving freight by rail instead of by truck can reduce greenhouse gas emissions by 75 per cent.
In addition to these works, CN has proposed the construction of a $250 million Milton Logistics Hub. The Hub would create over 1,000 direct and indirect jobs, if given the go-ahead.
The proposed project is currently undergoing an environmental assessment and regulatory review. The review includes participation from communities and Aboriginal groups which are local to the area.
This is just the latest in a spate of investments which CN has recently announced about Canadian provinces.
Earlier this week, CN made a similar announcement about investing approximately $445 million in British Columbia. Last week, the company also revealed plans to invest approximately $305 million in the province of Alberta.
CN’s Vice President of Eastern Region, Derek Taylor, called the investments a key part of the company’s strategy to support growth.
“The company remains committed to help enable supply chains that fuel Ontario’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,” he said.
CN (CNR) is up 0.21 per cent and is trading at $119.16 per share at 11:41am EDT.