International Railway Journal - May 2008 - (Page 6)

News Infrastructure tops CN investment plan C ANADIAN National (CN) has unveiled a $C 1.5 billion ($US 1.45 billion) capital investment programme that will plough more than $C 1 billion into infrastructure improvements in Canada and the United States. CN will spend $C 430 million on infrastructure in western Canada, including upgrading of its line to a new container terminal at Prince Rupert, and improvements to the recently-purchased Athabasca Northern Railway. In Eastern Canada, CN will invest $C 300 million including improvements to Toronto MacMillan yard, while in the United States $C 302 million will be spent on track, bridge and terminal improvements, as well as the completion of the $US 100 million Memphis Johnston yard upgrade. Around $C 140 million has been allocated to buy new diesel locomotives and upgrade the existing fleet. The investment programme does not include the $C 400 million plan to take over and upgrade the Elgin, Joliet and Eastern Railway, which is currently under environmental review by the United States Surface Transportation Board. Zambia develops cross-border links Oman to build first railway T HE first railway to cross Zambia’s western border with Angola has moved a step closer to fruition, according to Zambia’s state-owned news agency Zanis, which says the two countries have reached an agreement to build the link. Zambian President Mr Levy Mwanawasa said that by the end of his term in office in 2011, Zambia would build the 800km 1067mm-gauge line from Chingola in the Copperbelt to Lumwana mine in the west of the country and a junction with the Benguela Railway in eastern Angola. The first phase will be a 245km section from Chingola to the mining town of Solwezi. In March, Northwest Railways, a consortium of financiers from the United States, threatened to withdraw $US 400 million of funding from the project because mine owners had not committed to use the line (IRJ April p10). The two countries were once connected by the Benguela Railway, which runs via the Democratic Republic of Congo, although much of the line fell into disuse during Angola’s 27-year-long civil war. The Angolan section is currently being rehabilitated. The Zambian government says it is determined to complete the line from Chipata to Mchinji in Malawi, which was the subject of an intergovernmental agreement in 1983. The 25km line will cost $US 40 million to build, although Malawi has been unable to find the funds to complete its 9km section. The line would give Zambia a rail connection to the ports of eastern Mozambique. F EASIBILITY studies are set to begin soon for the construction of the first railway in Oman, according to minister of national economy Mr Ahmad Bin Abdul Nabi Macki, who says a consultant has been appointed to carry out the study. The freight-only line will begin west of Muskat in Birka, where a new container terminal will be built, and will run northwest for 200km to Sohar, one of Oman’s principal ports. DB maintains steady growth Eurotunnel moves into profit E UROTUNNEL has posted its first ever profit after a massive restructuring programme which saw its debts slashed from €9.18 billion to €5.85 billion. Revenues increased for the third consecutive year, rising 6% to €775 million in 2007, with a net profit of €1 million. Eurotunnel’s core shuttle operations saw an 8% increase in revenue to €500 million. “2007 shows the new Eurotunnel is nothing like the old,” explains chairman and chief executive Mr Jacques Gounon. “The results are due to remarkable levels of performance, strict management of operating costs, and the massive reduction in debt.” Gounon says Eurotunnel will go ahead with a €900 million rights issue in June, which is intended to reduce financing costs improve the prospects for maintaining profitability. ESPITE crippling strikes by drivers unions and the impact of a subsequent double-digit pay increase, German Rail’s (DB) profits increased for the third successive year in 2007, while net debts were reduced by more than €3 billion. Revenues rose 4.2% to €31.3 billion, with net profits of €1.72 billion. Freight arm Railion built on its record performance in 2006, with traffic up 2.5% to 98.8 billion tonne-km, while passenger D traffic remained steady at 74.8 billion passenger-km. DB says it will implement a series of measures over the coming months to counteract the effects of last year’s pay increases and strikes. “Our financial strength has improved significantly once again, and we are fully meeting our targets for growth,” says CFO Mr Diethelm Sack (pictured). DB expects its first-quarter results for 2008 to continue the upward trend. 6 IRJ May 2008

Table of Contents Feed for the Digital Edition of International Railway Journal - May 2008

International Railway Journal - May 2008 Contents This Month News Transit News Market News Technology News News Analysis Italian Railways on the Road to Recovery High-Speed: On the Home Straight Korea Develops High-Speed Ambitions Setting New Standards for New Rolling Stock India Solves Traction Motor Conundrum Weathering the Storm with Climatic Testing Technology Drives US Train Inspections Rendezvous Full Contact List Advertisers Index The Last Word

International Railway Journal - May 2008

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