CN to spend more than C$300 million in 2008 on rail infrastructure improvements in Eastern Canada

    MONTREAL, March 18 /CNW Telbec/ - CN (TSX:CNR) (NYSE:  CNI) announced today
plans to invest more than C$300 million in rail infrastructure projects in
Eastern Canada this year to maintain a safe railway and improve the
productivity and fluidity of its network.
    CN's capital spending in its Eastern Region is targeted at replacement of
rail, ties and other track materials, and bridge improvements. The Company is
also investing in the continuing reconfiguration of MacMillan Yard north of
Toronto to permit more efficient terminal operations.
    Michael Cory, vice-president, operations, Eastern Region, said: "Our
investments in rail infrastructure will ensure plant quality and safety for
our customers and the communities in which we operate, as well as improve the
productivity of MacMillan Yard - the largest freight car classification yard
on the CN system."
    CN plans to make its spending work harder in 2008 through improved
work-block planning and greater labour productivity, made possible through
changes negotiated in the four-year labour contract recently ratified by the
United Steelworkers, which represents approximately 3,000 CN track maintenance
employees in Canada.
    Day-to-day rail inspection and maintenance programs will benefit from the
roll out of the first phase of CN's Precision Engineering program. The mobile
computer system at the heart of this initiative will help CN manage
engineering processes more efficiently, reduce engineering related delays to
trains, improve labour efficiency as a result of better information
availability, and increase material and machine utilization.
    CN's Eastern Region capital program is part of a plan to invest
approximately C$1.5 billion company-wide in 2008, of which more than
C$1.1 billion will be focused on track infrastructure. Equipment spending,
targeted to reach approximately C$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 approximately C$250 million on
facilities to grow the business, including transloads and distribution
centers, information technology to improve service and operating efficiency,
and other projects to increase productivity.

    CN - Canadian National Railway Company and its operating railway
subsidiaries - spans Canada and mid-America, from the Atlantic and Pacific
oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert,
B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key
metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth,
Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis,
St. Louis, and Jackson, Miss., with connections to all points in North
America. For more information on CN, visit the company's website at

For further information:

For further information: Mark Hallman (Media), Director, Communications,
Media, CN, (905) 669-3384; Robert Noorigian (Investment Community),
Vice-President, Investor Relations, CN, (514) 399-0052

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