CN to Invest $38 Million in Iowa to Build Capacity and Power Sustainable Growth

Rhea-AI Summary

CN (NYSE: CNI) has announced plans to invest US$38 million in Iowa as part of its 2025 capital investment program. The investment will focus on track maintenance and strategic infrastructure initiatives to ensure safe goods movement and support sustainable growth in the state.

This follows CN's US$31 million investment in Iowa during 2024, which included US$1.4 million for track upgrades near Cedar Rapids and over US$1 million for Waterloo rail yard improvements. The company currently operates 572 railroad route miles in Iowa with approximately 258 employees, and reported US$29 million in local spending and US$6.2 million in cash taxes paid in 2024.

Positive

• Significant capital investment of US$38 million for infrastructure improvements in Iowa
• 22.6% increase in investment compared to 2024's US$31 million
• Strategic infrastructure upgrades to enhance network efficiency and resiliency
• Strong local economic presence with US$29 million in local spending during 2024

Negative

• None.

Insights

Transportation Infrastructure Analyst

CN's $38M Iowa investment continues growth strategy, building on 2024's $31M spend to enhance network efficiency and reliability.

CN's $38 million capital investment in Iowa represents a 22.6% increase from the $31 million invested in 2024, demonstrating the company's commitment to infrastructure enhancement and operational efficiency. This investment is strategically focused on track maintenance and infrastructure initiatives that strengthen network resiliency across the state.

The investment follows specific 2024 allocations that included $1.4 million for the Osage Subdivision near Cedar Rapids and $1 million for the Waterloo rail yard improvements. These targeted expenditures reflect CN's systematic approach to capacity building and operational enhancement.

From an infrastructure perspective, this investment supports CN's 572-mile Iowa network and complements the company's significant economic footprint in the state, which includes approximately 258 employees, $29 million in local spending, and $6.2 million in tax contributions.

The capital program demonstrates CN's dual focus on maintaining operational excellence while supporting long-term growth objectives. By investing in critical infrastructure, CN enhances its ability to provide reliable service to agricultural and industrial customers in Iowa while strengthening a vital link in its North American network. This investment represents a balanced approach to maintaining current operations while building capacity for future volume growth.

HOMEWOOD, Ill., June 30, 2025 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) announced today plans to invest approximately US$38 million in Iowa, as part of its 2025 capital investment program. This investment will support track maintenance and strategic infrastructure initiatives in the state. The projects will help ensure the safe movement of goods and support long-term sustainable growth in Iowa and across CN’s network.

“We believe that investing in our network is about building for the future. Our continued infrastructure investment in Iowa 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

“CN’s $38 million investment into our state’s infrastructure is a big win for Iowa's farmers, businesses, and communities. This project will not only improve the resiliency and efficiency of transporting Iowa products across North America, but it will also create jobs and support long-term sustainable growth in Iowa. Investments like this help ensure Iowa remains a leader in feeding and fueling the world, and I’m grateful to have CN invest in Iowa’s future." 

- U.S. Congresswoman Ashley Hinson, Iowa’s 2^nd Congressional District

In 2024, CN invested approximately US$31 million in Iowa for track maintenance and key infrastructure initiatives. Highlights of this investment include:

• Approximately US$1.4 million to upgrade the track and build capacity on CN’s Osage Subdivision near Cedar Rapids
• Over US$1 million towards upgrades at CN’s Waterloo rail yard to improve operations.
  
  

Iowa in Numbers:

• Capital investments: More than US$ 31 million in 2024
• Employees: approximately 258
• Railroad route miles operated: 572
• Community investments: US$ 98,000 in 2024
• Local spending: US$29 million in 2024
• Cash taxes paid: US$6.2 million in 2024
  
  

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

How much is CN (CNI) investing in Iowa's infrastructure in 2025?

CN is investing US$38 million in Iowa for track maintenance and strategic infrastructure initiatives as part of its 2025 capital investment program.

What infrastructure improvements did CN complete in Iowa during 2024?

In 2024, CN invested US$1.4 million to upgrade tracks near Cedar Rapids and over US$1 million for Waterloo rail yard improvements, as part of a total US$31 million investment in Iowa.

How many employees does CN have in Iowa?

CN employs approximately 258 people in Iowa and operates 572 railroad route miles in the state.

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

CN's economic impact in Iowa during 2024 included US$29 million in local spending, US$6.2 million in cash taxes paid, and US$98,000 in community investments.

How will CNI's investment benefit Iowa's infrastructure?

The investment will help ensure safe movement of goods, strengthen network resiliency and efficiency, support long-term sustainable growth, and create jobs across Iowa.