Canadian National Railway Company (TSX:T.CNR, Stock Forum) (NYSE:CNI, Stock Forum) said that it plans to construct five extended sidings on its B.C. North Line in 2012 as part of a multi-year capital program to expand freight train capacity.
A siding is a low-speed track used for maintenance, storing, loading and unloading vehicles.
According to the press release, the move is to handle the increasing freight volumes along its important Edmonton, Alta.-Prince Rupert, B.C., corridor. In 2011, more than half a million carloads/intermodal units moved over CN's B.C. North corridor. By 2015, CN traffic on this line could nearly double.
CN has extended or constructed 21 sidings to handle 12,000-foot trains between Edmonton and Prince Rupert since 2004.
CN plans to invest a total of C$1.8 billion in 2012 to maintain and upgrade its overall North American railway network, support growth and productivity initiatives, and continue to provide its customers quality service.
CN spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala.
On Thursday CN was trading for $85.95 a share. The company has a market cap of $37.4 billion, based on $434.7 million shares outstanding. The 52-week high and low was $87.90 and $63.72 respectively.