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CNI Plans to Invest C$80M in Atlantic Canada for Rail Innovation

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Key Takeaways

  • CNI will invest $80M CAD in New Brunswick and Nova Scotia to upgrade rail yards and the Autoport facility.
  • The 2025 capital plan targets rail safety, efficiency, and long-term freight growth across Atlantic Canada.
  • CNI has made similar multi-million CAD investments in five other provinces to expand network resiliency.

Canadian National Railway Company (CNI - Free Report) is forging ahead with a $80 million CAD investment in New Brunswick and Nova Scotia, as part of its 2025 capital investment program, signaling strong confidence in the region’s economic potential and the future of freight rail.

The investment is aimed at aiding track maintenance and strategic infrastructure initiatives to boost rail operations in the region, including upgrade projects to improve operations at its railyards and the Autoport facility in Eastern Passage, Nova Scotia. These investments are likely to guarantee the safe movement of goods and support long-term sustainable growth across CNI’s network in Atlantic Canada.

Tracy Robinson, president and chief executive officer at CNI, stated, "We believe that investing in our network is about building for the future. Our continued infrastructure investment in New Brunswick and Nova Scotia will help strengthen the resiliency, and efficiency of our network across Atlantic Canada. Our focus remains on providing exceptional service to our customers and supply chain partners, supporting strong economic growth for North America and across the communities where we operate."

Last year, CNI spent almost $84 million CAD in New Brunswick and Nova Scotia to support track maintenance and strategic infrastructure initiatives. The bulk of the investment boosts the ongoing maintenance of infrastructure, including rail and tie replacements, grade crossing work and structure maintenance.

In backing its ambitious expansion, CNI shows no signs of slowing down. It’s doubling down on its core strengths — efficiency, innovation and infrastructure — while paving the way for long-term returns. Last month, CNI has made similar multiple investments for rail operations’ expansion which includes investments of $290 million CAD in Saskatchewan, $475 million CAD in Quebec, $165 million CAD in Manitoba, $165 million CAD in Manitoba, $510 million CAD in Alberta and $600 million CAD in Ontario.  

We believe such robust initiatives strengthen investors’ confidence and support the long-term performance of this Zacks Rank #3 (Hold) stock.

Stocks to Consider

Investors interested in the Transportation sector may also consider Copa Holdings (CPA - Free Report) and SkyWest, Inc. (SKYW - Free Report) ).

CPA currently flaunts a Zacks Rank #1 (Strong Buy).  You can see the complete list of today’s Zacks #1 Rank stocks here.

CPA has an expected earnings growth rate of 14.3% for the current year. The company has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 5.5%. Shares of CPA have risen 24.2% year to date.

SkyWest, founded in 1972, is based in St. George and operates regional jets for major U.S. airlines. SKYW is the holding company for SkyWest Airlines, SkyWest Charter and SkyWest Leasing, an aircraft leasing company. SKYW currently carries a Zacks Rank of 2 (Buy).

SKYW has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in each of the last four quarters. The average beat was 17.1%. The Zacks Consensus Estimate for current and next-year earnings has been revised upward over the past 60 days.


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