Canadian Pacific Railway Limited (CP) announced that, as part of the company’s multi-year plan, it will invest between $1.1 billion and $1.2 billion for infrastructure renewal, network enhancements and expansion projects in 2012. The plan will focus on investments to improve service and increase network.
“At CP, we are executing our accelerated multi-year investment plan, to further improve service reliability, asset velocity, and operational efficiency, while expanding capacity to safely and efficiently support higher volumes,” said Fred Green, CP President and CEO. “We are confident that the investments we are making under our 2012 Capital Plan will allow us to achieve a low-70s operating ratio in the next three years.”
Major investment categories include the following approximate amounts:
• $800 million to preserve existing capacities through replacement or renewal of depleted assets;
• $275 million for network capacity expansions, business development projects and productivity initiatives; and
• $50 million to address capital regulated by governments, principally train control.