CN Rail outlines $2.9-billion spending plan for 2016, about half on track

MONTREAL – Canadian National Railway says it plans to spend $2.9 billion this year to improve its efficiency, support long-term growth and strengthen safety.

CN’s capital budget for 2016 includes $1.5 billion for track infrastructure.

That includes rail replacement, bridge improvements and branch line upgrades.

CN is also budgeting $600 million on its fleet of railcars and 90 new locomotives.

The Montreal-based company (TSX:CNR) also plans to spend $400 million on productivity and service improvements and a further $400 million to begin installing new technology on portions of its U.S. rail network.

Note to readers: This is a corrected story. A previous version had an incorrect figure for the amount of money set aside for new technology.