Canadian National Railway Plans to Invest $290 Million in Saskatchewan to Build Capacity and Power Sustainable Growth

Canadian National Railway Company (NYSE:CNI) announced today a substantial $290 million CAD investment in Saskatchewan as part of its 2025 capital allocation program. This marks a significant step up from the $160 CAD million allocated in 2024, reinforcing CNI’s long-term commitment to enhancing rail capacity, efficiency, and sustainability across its network.

The funds will target key infrastructure upgrades and track maintenance, with a particular focus on supporting agriculture-related freight such as grain and fertilizers — a vital segment of Saskatchewan’s economy. The investment also includes enhancements to the company's Melville railyard and upgrades to grade crossings across the province.

The announcement comes after two years of flat revenue growth and a time at which the new US Trump administration has threatened Canada's economic prosperity. Canadian National Railway Company (NYSE:CNI) plays a crucial part in the supply chain of Canada's economy, which is largely dependent on an efficient transportation network from resource-rich but difficult-to-access provinces like Saskatchewan. Consequently, CNI's accelerated investments in infrastructure are a logical step in Canada's attempt to streamline its economy and diversify its supply route (i.e., minimize dependence on trade with the US alone).

With such large projects ahead, Canadian National Railway Company (NYSE:CNI) is well-positioned to accelerate its growth vs. the sluggish post-pandemic period. Management maintains optimistic 10% to 15% EPS growth guidance for the current fiscal year, while CNI stock outperforms the broad market year-to-date.

Canada National Railway is a transcontinental network that connects Canada’s Atlantic and Pacific coasts to the US Gulf Coast, serving as a critical backbone for trade in key sectors like agriculture, energy, and manufacturing.

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