CN Investing $3.4 Billion to Build Capacity and Power Sustainable Growth

Rhea-AI Summary

CN (CNI) has announced its 2025 capital expenditure program of CAD $3.4 billion, focusing on capacity growth, safety enhancement, and sustainable development across North America. The program includes CAD $2.9 billion for maintenance and strategic infrastructure initiatives, with projects encompassing over 225 miles of new rail installation and 8 capacity building projects in Western Canada. Additionally, CAD $500 million is allocated for rolling stock upgrades and expansion.

The company's 2024 investments of CAD $3.5 billion included notable projects such as a $75 million CAD siding extension in Chicago boosting corridor capacity by 17%, infrastructure improvements in Greater Vancouver, and development of a high-efficiency loading fuel terminal in Toronto.

Positive

• None.

Negative

• Slight decrease in capital expenditure from CAD $3.5B in 2024 to CAD $3.4B in 2025
• Large capital investments may impact short-term free cash flow

Insights

Transportation Infrastructure Analyst

CN's $3.4B capital program strengthens rail network capacity and efficiency, continuing stable investment strategy compared to 2024's $3.5B spend.

CN's announced $3.4 billion CAD capital expenditure program for 2025 represents a strategic continuation of their infrastructure investment strategy, maintaining nearly the same level as their $3.5 billion CAD 2024 investment. The bulk of this funding ($2.9 billion) targets maintenance and strategic infrastructure initiatives across North America, with $500 million specifically allocated to rolling stock upgrades.

The investment includes critical operational improvements already underway: over 225 miles of new rail installation and approximately 8 capacity-building projects in Western Canada scheduled for completion this year. These projects strategically address network bottlenecks while enhancing safety and reliability.

Looking at CN's 2024 expenditures provides context for their investment approach. The $75 million CAD four-mile siding extension in Chicago delivered a 17% corridor capacity increase – a substantial efficiency gain from a targeted investment. Meanwhile, multiple projects around Greater Vancouver (Holdom Overpass, Thornton Tunnel, Lulu Island and Fraser River bridge upgrades) demonstrate CN's focus on addressing urban congestion points that impact network fluidity.

The $60 million investment in the high-efficiency loading fuel terminal at MacMillan Yard particularly stands out as it enhances service to the economically vital Greater Toronto Area while potentially reducing operational costs.

This consistent year-over-year capital investment strategy indicates CN is maintaining its long-term focus on network improvement rather than pursuing short-term cost-cutting. For a rail network operator, sustained infrastructure investment typically yields compounding efficiency benefits while addressing maintenance backlogs that could otherwise result in costly service disruptions or safety incidents.

MONTREAL, May 15, 2025 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) today announced its 2025 capital expenditures program, underscoring its commitment to growing capacity, enhancing safety, and powering sustainable growth across its North American network. CN will invest approximately $3.4 billion CAD in capital projects this year, net of customer reimbursements.

This year’s capital program includes approximately $2.9 billion allocated to its maintenance and strategic infrastructure initiatives across Canada and the United States. Projects already underway include over 225 miles of new rail installation and approximately 8 capacity building projects in Western Canada scheduled to come online by the end of this year.

As part of this investment CN is also allocating over $500 million to upgrade and expand its rolling stock, reinforcing the Company’s focus on providing safe, reliable, and efficient service for customers across its network.

"At CN, we believe investing in our network is investing in the future of North American supply chains. Our 2025 capital program reflects a clear focus on strengthening the resilience, efficiency, and sustainability of our operations. These investments are about delivering exceptional service today — and building a safer, more connected tomorrow for our customers, employees, supply chain partners, and the economy."

• Tracy Robinson, President, and Chief Executive Officer of CN
  

In 2024, CN invested approximately $3.5 billion CAD, of which $1.7 billion was spent to maintain the safety and integrity of its network, particularly track infrastructure.

More highlights from CN’s strategic infrastructure investments in 2024 included:

• Over $75 million CAD (USD $54 million) in a four-mile siding extension in the Greater Chicago area, boosting corridor capacity by 17%.
• Advancing projects to improve fluidity and capacity in the Greater Vancouver area, such as a $7.6 million initial investment in the multi-year Holdom Overpass project, and $2 million for enhancements to the Thornton Tunnel, as well as another $7 million for upgrades to both the Lulu Island and Fraser River Bridges.
• Over $60 million invested with its project partners, towards the completion of Phase 1 and advancement of Phase 2 of the new high efficiency loading fuel terminal at CN’s MacMillan Yard in Vaughn, Ontario, serving customers in the Greater Toronto Area.
  

This annual investment in capital projects and maintenance activities drives the safety and efficiency of CN’s operations, laying a solid foundation for long-term sustainable growth.

CN Forward-Looking Statements
Certain statements by CN included in this news release constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995 and under Canadian securities laws. By their nature, forward-looking statements involve risks, uncertainties and assumptions. CN cautions that its assumptions may not materialize and that current economic conditions render such assumptions, although reasonable at the time they were made, subject to greater uncertainty. Forward-looking statements may be identified by the use of terminology such as “believes,” “expects,” “anticipates,” “assumes,” “outlook,” “plans,” “targets,” or other similar words. Forward-looking statements reflect information as of the date on which they are made. CN assumes no obligation to update or revise forward-looking statements to reflect future events, changes in circumstances, or changes in beliefs, unless required by applicable securities laws. In the event CN does update any forward-looking statement, no inference should be made that CN will make additional updates with respect to that statement, related matters, or any other forward-looking statement.

About CN
CN powers the economy by safely transporting more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year for its customers. With its nearly 20,000-mile rail network and related transportation services, CN connects Canada’s Eastern and Western coasts with the U.S. Midwest and the U.S. Gulf Coast, contributing to sustainable trade and the prosperity of the communities in which it operates since 1919.

Contacts:
Media	Investment Community
Ashley Michnowski	Stacy Alderson
Senior Manager	Assistant Vice-President
Media Relations	Investor Relations
(438) 596-4329	(514) 399-0052
media@cn.ca	investor.relations@cn.ca

FAQ

What is CNI's capital expenditure plan for 2025?

CN (CNI) plans to invest CAD $3.4 billion in capital projects for 2025, with CAD $2.9 billion allocated to maintenance and strategic infrastructure initiatives and CAD $500 million for rolling stock upgrades.

How many miles of new rail installation is CN planning in 2025?

CN is planning to install over 225 miles of new rail as part of its 2025 capital expenditure program.

What major infrastructure projects did CNI complete in 2024?

In 2024, CN completed several major projects including a CAD $75M siding extension in Chicago (increasing corridor capacity by 17%), improvements in Greater Vancouver including the Holdom Overpass project, and progress on a high-efficiency loading fuel terminal in Toronto.

How does CNI's 2025 capital expenditure compare to 2024?

CNI's 2025 capital expenditure of CAD $3.4 billion is slightly lower than the CAD $3.5 billion invested in 2024.

What are the main focus areas of CN's 2025 investment program?

CN's 2025 investment program focuses on three main areas: growing capacity, enhancing safety, and powering sustainable growth across its North American network.