CN Announces C$3.2 Bln Capital Program For 2018; Raises Dividend By 10%

(RTTNews) - Canadian National Railway Company (CNI, CNR.TO) announced its planned C$3.2 billion capital program for 2018 which will focus on key capacity projects to meet growing freight demand and continued investment in infrastructure maintenance to enhance safety and efficiency. CN plans to invest approximately C$1.6 billion on track and railway infrastructure maintenance to support safe and efficient operations. The planned work includes the replacement of 2.1 million rail ties and more than 600 miles of rail, plus work on bridges and other general track maintenance.

The company plans to invest approximately C$400 million in 2018 on the implementation of Positive Train Control (PTC) along 3,500 route miles of its U.S. network. CN plans to invest a total of US$1.4 billion on PTC capital expenditures by 2020.

The company's Board approved a 10 percent increase to 2018 quarterly cash dividend, effective for the first quarter of 2018. A quarterly dividend of C$0.455 per common share will be paid on March 29, 2018, to shareholders of record at the close of business on March 8, 2018.