Canada/USA – May 16, 2025

CN Railway Details C$3.4 Billion Capital Program for 2025, Prioritizing Infrastructure Resilience and Technological Advancement

Canadian National Railway (CN) has announced a substantial capital expenditure program for 2025, earmarking approximately C$3.4 billion (equivalent to $2.4 billion USD) to bolster capacity, enhance safety protocols, and improve operational efficiency across its extensive North American network. This significant investment underscores CN’s commitment to fostering sustainable growth and reinforcing its critical role in the continent’s supply chains. The program strategically allocates resources towards both foundational infrastructure projects and the modernization of its rolling stock. A major portion, around C$2.9 billion ($2.07 billion USD), is dedicated to track and structures maintenance and strategic infrastructure initiatives spanning Canada and the United States. This comprehensive plan signals CN’s proactive approach to meeting current and future freight transportation demands, emphasizing the long-term health and performance of its railway system, which is vital for economic stability and trade facilitation across North America.

Investing in the Backbone: Core Network Integrity and Strategic Expansion

The cornerstone of CN’s 2025 capital plan is the C$2.9 billion ($2.07 billion USD) allocated to maintaining and strategically upgrading its fixed infrastructure. This funding addresses the fundamental elements of railway operation, ensuring the network remains safe, reliable, and capable of handling increasing freight volumes. Core maintenance activities will include extensive rail replacement, with plans to install over 225 miles of new rail. This is a critical aspect of preventing derailments and ensuring smooth transit. Beyond rail, investments will cover tie renewal, ballast programs to maintain track geometry and stability, and comprehensive upkeep of bridges and culverts. A key focus within this allocation is on capacity enhancement, particularly in Western Canada, a vital corridor for national and international trade. Approximately eight significant capacity-building projects are slated for this region, expected to become operational by the end of 2025. These projects likely involve constructing new sidings, extending existing ones, or potentially adding sections of double track to alleviate bottlenecks and improve train fluidity, especially for key commodities like grain and intermodal traffic originating from Pacific ports.

Modernizing Motive Power and Freight Assets: Enhancing Service Delivery

Complementing the substantial investment in fixed infrastructure, CN is dedicating more than C$500 million towards the upgrade and expansion of its rolling stock. This commitment is crucial for delivering safe, reliable, and efficient services to its diverse customer base. The investment will likely encompass several areas:

• Acquisition of new, technologically advanced locomotives that offer improved fuel efficiency and reduced emissions, contributing to both operational cost savings and CN’s environmental sustainability goals.
• Modernization programs for the existing locomotive fleet, potentially including retrofits with enhanced control systems, emissions reduction technologies, and improved reliability features.
• Investment in the freight car fleet, which could involve acquiring new specialized cars to meet evolving market demands (e.g., for bulk commodities, automotive, or intermodal containers) or refurbishing existing assets to extend their service life and ensure they meet stringent safety standards.

This focus on modernizing its mobile assets is essential for improving asset utilization, reducing in-train forces, and ensuring that CN can effectively meet the haulage requirements of its customers across various sectors.

Building on Strategic Precedents: Insights from 2024’s Initiatives

CN’s 2025 capital strategy is informed by and builds upon significant investments made in previous years. In 2024, the railway’s capital expenditures reached approximately C$3.5 billion, with a notable C$1.7 billion specifically directed towards maintaining the safety and integrity of its track infrastructure. Several key projects from 2024 highlight CN’s ongoing commitment to network improvement. For instance, a C$75 million investment in a siding extension in the strategically critical Greater Chicago area demonstrably increased corridor capacity by 17%, easing congestion in one of North America’s busiest rail hubs. Further west, efforts to improve operational fluidity in the Greater Vancouver area included a C$7.6 million initial investment in the Holdom Overpass project and $2 million for enhancements to the Thornton Tunnel. Upgrades to vital water crossings, such as the C$7 million allocated for the Lulu Island and Fraser River Bridges, also underscored the focus on infrastructure resilience. Additionally, CN, in collaboration with partners, invested over C$60 million to complete Phase One and advance Phase Two of a new high-efficiency loading fuel terminal at MacMillan Yard in Vaughan, Ontario, enhancing service to the Greater Toronto Area. These prior investments provide a foundation for the 2025 program, ensuring a continuous improvement cycle.

Embracing Technological Innovation for Enhanced Safety and Operational Acumen

A significant facet of CN’s strategy involves leveraging advanced technologies to elevate safety standards and operational efficiency. A key development in this area was the five-year strategic agreement established in October 2024 with Duos Technologies Group. This partnership focuses on providing CN with Machine Vision/Artificial Intelligence (AI) Wayside Detection Safety Data subscriptions. Wayside detection systems are critical for monitoring the health of rolling stock in real-time, identifying potential mechanical issues such as overheated bearings (hot boxes), dragging equipment, or compromised wheel integrity before they can lead to service disruptions or safety incidents. The integration of Machine Vision and AI into these systems represents a leap forward, enabling more accurate and automated inspection processes. AI algorithms can analyze vast amounts of data collected by wayside sensors, identify subtle anomalies that might be missed by traditional systems or manual inspection, and contribute to predictive maintenance strategies. By proactively identifying and addressing potential equipment failures, CN aims to further reduce the risk of incidents, improve asset reliability, and optimize maintenance scheduling, ultimately contributing to a safer and more efficient railway operation.

Conclusion: A Forward-Looking Investment in North American Rail Infrastructure

Canadian National Railway’s C$3.4 billion capital program for 2025 represents a significant and forward-looking commitment to the future of North American freight transportation. The plan meticulously balances the critical need for robust maintenance of existing infrastructure with strategic investments in capacity expansion and technological modernization. The allocation of C$2.9 billion towards core network integrity, including over 225 miles of new rail and targeted capacity projects in Western Canada, directly addresses the physical backbone of its operations, ensuring resilience and the ability to handle growing demand. Simultaneously, the more than C$500 million earmarked for rolling stock upgrades will enhance service reliability, efficiency, and potentially contribute to environmental performance through more fuel-efficient locomotives.

As CN President and CEO Tracy Robinson stated, “At CN, we believe investing in our network is investing in the future of North American supply chains. Our 2025 capital programme reflects a clear focus on strengthening the resilience, efficiency, and sustainability of our operations.” This vision is further supported by building on the successes of 2024’s C$3.5 billion expenditure, which saw tangible improvements in key corridors like Chicago and Vancouver, and the continued development of essential facilities like the MacMillan Yard fuel terminal. Moreover, the embrace of cutting-edge technologies, exemplified by the Duos Technologies Group partnership for AI-powered wayside inspection, signals CN’s dedication to elevating safety standards and operational intelligence. Ultimately, this comprehensive investment strategy positions CN to not only maintain its extensive network but to enhance its capacity, safety, and efficiency, thereby reinforcing its vital role in supporting the intricate and demanding supply chains that underpin the North American economy.

Company Summaries:

• Canadian National Railway (CN): CN is a Class I freight railway operating an extensive network spanning Canada and mid-America, connecting three coasts: the Atlantic, the Pacific, and the Gulf of Mexico. It transports a wide range of goods, including bulk commodities, intermodal containers, automotive products, and manufactured goods, playing a crucial role in North American commerce.
• Duos Technologies Group (DTG): Duos Technologies Group, Inc. provides advanced intelligent technology solutions, specializing in Machine Vision and Artificial Intelligence (AI) to analyze fast-moving objects. Their systems are utilized in various industries, with a significant focus on rail transportation for applications such as automated mechanical inspection of railcars and security surveillance.