3 January 2006
CPR Announces Planned 2006 Capital Investment
Canadian Pacific Railway says it plans a capital investment of $810 million to $825 million in 2006,
a decline from approximately $920 million in 2005 when the railway carried out its largest capacity expansion program in two decades.
"Our investments in 2006 will take execution of scheduled operations to a new level of excellence, improve fluidity and service to
support growth, and ensure our customers, neighbours and employees can continue to count on the integrity and safety of the CPR
infrastructure and assets," said Rob Ritchie, Chief Executive Officer, in a statement.
The 2006 capital program will be concentrated mainly on track infrastructure, locomotive power, information technology, and intermodal
terminals and other service facilities. This includes approximately:
- $570 million to maintain and upgrade rail, ballast, crossties and automated signal systems, and to extend and build sidings, which
are used as passing lanes in single-track areas;
- $160 million for locomotive maintenance, overhaul and acquisitions, ensuring CPR has the hauling capacity to meet customer demand
and service requirements;
- $50 million for information technology that will support continued improvement in executing scheduled railway operations; and $25
million to expand capacity in intermodal terminals and maintain other service facilities to accommodate growing freight volumes.
The remainder of the 2006 capital program will support targeted growth opportunities in higher-yield markets and improved
efficiency and productivity, says the company.
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