7 February 2011

Capital Forecast 2011 CPR

Calgary Alberta - "CP is focused on continuously improving service reliability, asset velocity, and productivity. With strong demand projected in many of our commodity based businesses, this capital plan will enable us to meet our customers' needs and continue to lower our operating ratio to create a stronger franchise for the future," said Kathryn McQuade, CPR's chief financial officer in a statement.
 
The 2011 capital plan will focus on making strategic and targeted capacity investments to ensure that the efficiencies gained through the railroad's long train strategy, repair facility and yard consolidations, are sustained as business levels return. The company will also invest in fast payback productivity and technology projects and pursuing growth and market based opportunities, such as transload, intermodal, and energy projects.
 
Major investment categories include $680 million for basic track infrastructure renewal, $200 million for volume growth, productivity initiatives and network enhancements, $80 million to strengthen and upgrade IT systems to enhance shipment visibility and information needs, and $40 million to address capital regulated by governments, principally train control.
 
The railroad's planned 2011 track renewal includes replacing 340 track miles of new rail, installing 153 track miles of relay rail, replaceing 896,000 crossties, and ballasting approximately 115 track miles.
 
"Our first priority is to re-invest in the business keeping our core franchise safe and well maintained. The improving economy creates opportunities to capture growth more efficiently through infrastructure and technology investments," said McQuade.