CN to Invest $30 Million in Tennessee to Build Capacity and Power Sustainable Growth

Rhea-AI Summary

CN announced plans to invest US$30 million in Tennessee as part of its 2025 capital investment program, focusing on infrastructure, technology, rolling stock equipment, and network improvements. This follows their 2024 investment of US$36 million in the state, which included US$7 million for upgrading Harrison Yard's locomotive fueling facility and US$1.3 million for Memphis railyard transload facility upgrades. CN currently operates 161 railroad route miles in Tennessee with approximately 655 employees. In 2024, the company made significant local contributions, including US$24 million in local spending, US$8.7 million in cash taxes, and US$64,000 in community investments. The investment aims to enhance network safety, efficiency, and support sustainable economic growth across Tennessee and CN's broader network.

Positive

• New US$30 million investment commitment for Tennessee infrastructure and technology improvements
• Strong previous year performance with US$36 million invested in Tennessee in 2024
• Significant local economic impact with US$24 million in local spending and US$8.7 million in taxes paid in 2024
• Strategic upgrades to key facilities including US$7 million for Harrison Yard locomotive fueling facility

Negative

• None.

Insights

Infrastructure Investment Analyst

CN's $30M Tennessee investment strengthens infrastructure, enhances operational efficiency, and supports growth while maintaining capital discipline.

CN's planned $30 million investment in Tennessee represents a strategic allocation of capital to enhance network resilience and operational efficiency. This investment is part of the company's broader 2025 capital investment program aimed at supporting sustainable growth across its network.

Looking at the year-over-year trend, this investment represents a slight reduction from the $36 million invested in Tennessee during 2024. The 16.7% decrease suggests CN is maintaining disciplined capital allocation while still focusing on critical infrastructure needs.

The 2024 investment breakdown provides insight into CN's priorities, with $7 million allocated to upgrading the Harrison Yard locomotive fueling facility and $1.3 million for transload facility improvements at the Memphis railyard. These targeted investments enhance operational efficiency at key logistical nodes within CN's Tennessee network.

CN's Tennessee operations are significant with approximately 655 employees and 161 route miles, generating substantial economic impact through $24 million in local spending and $8.7 million in cash taxes paid in 2024.

This capital deployment aligns with CN's long-term strategy of maintaining and enhancing its core rail infrastructure while supporting economic growth in its operating regions. The endorsement from Tennessee's Department of Transportation highlights the alignment between CN's investment and the state's transportation priorities, particularly as Tennessee continues to experience economic growth.

The investment demonstrates CN's commitment to maintaining competitive infrastructure while balancing capital discipline—a critical consideration for investors evaluating the company's operational efficiency and return on invested capital.

HOMEWOOD, Ill., June 12, 2025 (GLOBE NEWSWIRE) -- June 12 2025 – CN (TSX: CNR) (NYSE: CNI) announced today plans to invest approximately US$30 million in Tennessee, as part of its 2025 capital investment program. This includes investments in infrastructure, technology, rolling stock equipment, as well as network improvements These projects will help ensure the safe movement of goods and support long-term sustainable growth in Tennessee and across CN’s network.

“We believe that investing in our network is about building for the future. Our continued infrastructure investment in Tennessee will help strengthen the resiliency and efficiency of our network across the state. Our focus remains on providing exceptional service to our customers and supply chain partners, supporting strong economic growth for North America and across communities where we operate.”

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

“The Tennessee Department of Transportation is excited about CN's investments in Tennessee. The approximately $30 million will increase the entire system's fluidity as Tennessee continues to grow, connecting CN with its customers in Tennessee and beyond. The investment will support TDOT's vision of providing a safe and reliable transportation system for people, goods, and services, supporting Tennessee's economic prosperity."

- Dan Pallme, Assistant Bureau Chief – Planning Bureau, Tennessee Department of Transportation

In 2024, CN invested approximately US$36 million in Tennessee for track maintenance and key infrastructure initiatives. Highlights of this investment include:

- Over US$7 million to support the upgrade of the locomotive fueling facility at Harrison Yard.

- More than US$1.3 million for upgrades to CN’s transload facility at its Memphis railyard

Tennessee in Numbers:

• Employees: approximately 655
• Railroad route miles operated: 161
• Community investments: US$ 64,000 in 2024
• Local spending: US$24 million in 2024
• Cash taxes paid: US$8.7 million in 2024
  

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 CN's (CNI) planned investment in Tennessee for 2025?

CN plans to invest approximately US$30 million in Tennessee during 2025 for infrastructure, technology, rolling stock equipment, and network improvements.

How many employees does CN have in Tennessee?

CN employs approximately 655 people in Tennessee and operates 161 railroad route miles in the state.

How much did CN invest in Tennessee during 2024?

CN invested approximately US$36 million in Tennessee during 2024, including US$7 million for Harrison Yard upgrades and US$1.3 million for Memphis railyard improvements.

What was CN's economic impact in Tennessee during 2024?

In 2024, CN's economic impact in Tennessee included US$24 million in local spending, US$8.7 million in cash taxes paid, and US$64,000 in community investments.

What specific facility improvements is CN making in Tennessee?

CN's investments include upgrades to the locomotive fueling facility at Harrison Yard and improvements to the transload facility at its Memphis railyard.