CN Announces 1997 Capital Expenditure Program.CALGARY, ALBERTA--(BUSINESS WIRE)--Feb. 18, 1997--CN (NYSE NYSE See: New York Stock Exchange CNI (1) (Certified NetWare Instructor) See Novell certification. (2) (Coalition for Networked Information, Washington, DC, www.cni.org) A partnership of the Association of Research Libraries, CAUSE and EDUCOM, founded in 1990. , ME, TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). CNR See riser card. CNR - Communication and Network Riser ) In a speech today to the Calgary Chamber of Commerce, Canadian National Railway Canadian National Railway, rail system in Canada and the United States, extending from coast to coast in Canada with many branch lines in each province and in the United States. President and Chief Executive Officer Paul M. Tellier announced that CN will invest $530 million in capital expenditures this year to improve customer service. "A key step to achieve this goal is the purchase of 75 new locomotives," Tellier added. "This brings to 180 the number of new locomotives CN has acquired since last year. As a result of these investments, our fleet will be among the most efficient in the North American railroad industry." Tellier also said that about $100 million will be spent this year on railcars. Details of this purchase will be announced at a later date, he said. Forty of the new locomotives will be purchased from General Electric Company of Erie, Pennsylvania, and 35 from Diesel Division, General Motors of Canada Ltd. The new 4300 and 4400 hp locomotives are valued at $150 million and will be delivered in time to ensure reliable service next winter. However Tellier pointed out that the order might have been larger were it not for the constraints imposed by the current Canadian tax regime. "We have long stressed that Canadian railroads are at a considerable disadvantage in relation to the rate at which we can depreciate depreciate v. in accounting, to reduce the value of an asset each year theoretically on the basis that the assets (such as equipment, vehicles or structures) will eventually become obsolete, worn out and of little value. (See: depreciation) equipment, not only with respect to our U.S. counterparts, but also with respect to other Canadian industries such as trucking," said Tellier. "U.S. railroads can depreciate their equipment in as few as eight years, while Canadian railroads must wait as long as 20 years. With a level tax regime, overall we would have purchased up to 20 more locomotives for the benefit of our customers," he said. The new locomotives feature the most modern hauling technology, including microprocessor control systems, and the latest in cab design to provide train crews with an improved working environment. The order accelerates CN's plan to replace 543 of its aging locomotives. Canadian National is Canada's largest and North America's sixth largest freight railroad, based on 1996 revenues of $4.2 billion. It serves all of Canada, including the key ports of Vancouver, Montreal, and Halifax, as well as Chicago and Detroit, with connections to all points in North America. CONTACT: Canadian National Railway Company Canadian National Railway Company (NYSE: CNI, TSX: CNR) is a Canadian rail transportation company that operates the Canadian National Railway. It was created in December, 1918 as a Crown corporation of the Government of Canada to nationalize several bankrupt rail systems Christine Skjerven, 514/ 399-3108 |
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