CN to Invest $60 Million in Minnesota to Build Capacity and Power Sustainable Growth

Rhea-AI Summary

CN announced a planned US$60 million investment in Minnesota for 2025 as part of its capital investment program, focusing on track maintenance and strategic infrastructure initiatives. This follows a US$77 million investment in 2024, which included US$9 million for Two Harbors rail yard upgrades and US$2.5 million for Duluth Iron Ore Dock improvements. The company currently operates 426 railroad route miles in Minnesota, employs approximately 569 people, and made US$117 million in local spending in 2024. The investment aims to enhance network resiliency, efficiency, and safety while supporting sustainable growth and the state's iron ore supply chain.

Positive

• Significant capital investment of US$60 million demonstrates commitment to infrastructure improvement
• Strategic enhancement of Two Harbors rail yard and Duluth Iron Ore Dock strengthens operational capabilities
• Strong local economic impact with US$117 million in local spending and 569 employees in Minnesota
• Investment supports critical iron ore supply chain infrastructure

Negative

• Planned 2025 investment of US$60 million represents a 22% decrease from 2024's US$77 million investment

Insights

Infrastructure Investment Analyst

CN's $60M Minnesota investment strengthens network resilience and supports sustainable growth while enhancing operational efficiency across key infrastructure.

CN's planned $60 million investment in Minnesota represents a strategic allocation of capital toward critical infrastructure and maintenance projects that will enhance network reliability. This investment is part of their broader 2025 capital program and follows last year's $77 million investment in the state, showing consistent commitment to infrastructure development.

The investment strategy focuses on two critical operational areas: network resilience and operational efficiency. Key components include upgrading the Two Harbors rail yard and enhancing the Duluth Iron Ore Dock, which are essential links in Minnesota's iron ore supply chain. These targeted improvements will strengthen CN's ability to handle bulk commodities efficiently while maintaining service quality.

What's particularly notable is CN's continued investment in the Two Harbors facility, including a new loop track that will significantly improve operational flow. This follows the $9 million invested there in 2024, indicating a multi-year strategic focus on this key facility. Such consecutive investments typically yield compounding operational benefits, creating increasing returns on capital deployed.

The stable capital investment pattern ($77M in 2024, $60M in 2025) suggests disciplined capital allocation within CN's broader network strategy. While this year's investment represents a 22% decrease from 2024, it remains substantial for a state with 426 route miles, averaging approximately $140,000 per mile. This investment density helps maintain CN's competitive position in the region's transportation infrastructure while supporting their commercial relationships with Minnesota's resource industries.

HOMEWOOD, Ill., June 16, 2025 (GLOBE NEWSWIRE) -- CN (TSX: CNR) (NYSE: CNI) announced today plans to invest approximately US$60 million in Minnesota, 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 Minnesota and across CN’s network.

“We believe that investing in our network is about building for the future. Our continued infrastructure investment in Minnesota 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 significant investments in Two Harbors, Minnesota, to enhance its operations and infrastructure including the addition of a new loop track and upgrading its rail yard.  While improving CN’s efficiency it also solidifies jobs for Two Harbors residents.  These investments reinforce CN’s commitment not only to Two Harbors, but to supporting Minnesota’s iron ore supply chain and strengthening its transportation network.” 

 - Lew Conner, Mayor, Two Harbors, Minnesota

In 2024, CN invested approximately US$77 million in Minnesota for track maintenance and key infrastructure initiatives. Highlights of this investment include:

 - Over US$9 million to upgrade and improve operations at CN’s Two Harbors rail yard

 - More than US$2.5 million to upgrade and build capacity at CN’s Duluth Iron Ore Dock

Minnesota in Numbers:

• Capital investments: Approximately US$ 77 million in 2024
• Employees: approximately 569
• Railroad route miles operated: 426
• Community investments: US$ 60,000 in 2024
• Local spending: US$117 million in 2024
• Cash taxes paid: US$19 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

What is CNI's planned investment in Minnesota for 2025?

CN (CNI) plans to invest approximately US$60 million in Minnesota during 2025 for track maintenance and strategic infrastructure initiatives.

How much did CN invest in Minnesota in 2024?

CN invested approximately US$77 million in Minnesota during 2024, including US$9 million for Two Harbors rail yard upgrades and US$2.5 million for the Duluth Iron Ore Dock.

How many employees does CN have in Minnesota?

CN employs approximately 569 people in Minnesota and operates 426 railroad route miles in the state.

What are the main infrastructure projects for CN in Minnesota?

The main infrastructure projects include upgrades to the Two Harbors rail yard and improvements to the Duluth Iron Ore Dock, focusing on enhancing network resiliency and efficiency.

What is CN's economic impact in Minnesota?

In 2024, CN made US$117 million in local spending, paid US$19 million in cash taxes, and invested US$60,000 in community investments in Minnesota.