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HOMEWOOD, Ill. - CN (TSX: CNR) (NYSE: CNI), a prominent player in the ground transportation industry with a market capitalization of $65.45 billion, announced plans to invest approximately $170 million in Illinois as part of its 2025 capital investment program, focusing on track maintenance and strategic infrastructure initiatives. According to InvestingPro analysis, the company currently trades slightly below its Fair Value, suggesting potential upside for investors.
The investment will support construction of the Chicago Logistics Hub, technology and training facility upgrades at CN’s Homewood Campus, and network improvements throughout the state.
"Our continued infrastructure investment in Illinois will help strengthen the resiliency and efficiency of our network across the state," said Tracy Robinson, President and Chief Executive Officer of CN, in a press release statement.
The railroad company invested approximately $234 million in Illinois during 2024, which included over $54 million for a four-mile siding extension in the Greater Chicago area that boosted corridor capacity by 17%. Additional 2024 investments included more than $15 million for new equipment and approximately $10 million to improve intermodal operations in the Chicago area.
CN currently operates 1,256 railroad route miles in Illinois and employs approximately 1,667 people in the state. The company reported $1.0 billion in local spending in Illinois during 2024 and paid $46 million in state taxes.
Hugh O’Hara, President of the Will County Governmental League, noted that CN "has been a tremendous community partner across Will County for many years."
The Illinois investment is part of CN’s broader capital program aimed at maintaining safe movement of goods while supporting long-term sustainable growth across its network, which spans nearly 20,000 miles connecting Canada’s Eastern and Western coasts with the U.S. Midwest and Gulf Coast.
In other recent news, Canadian National Railway has announced significant financial updates and strategic initiatives. The company plans to invest approximately $510 million CAD in Alberta for rail infrastructure improvements, aiming to enhance intermodal capacity and rail efficiency. This marks an increase from the $357 million CAD invested in 2024. Additionally, Canadian National Railway has committed $80 million CAD for rail upgrades in New Brunswick and Nova Scotia as part of its 2025 capital investment program. These investments are intended to improve track maintenance and support sustainable growth in the region.
On the financial front, Citi has raised its price target for Canadian National Railway to $124.00, maintaining a Buy rating. This adjustment follows a tour of the company’s Prince Rupert facility, where Citi analysts noted the port’s strategic advantages. BMO Capital also maintains an Outperform rating with a price target of Cdn$168.00, while UBS reaffirmed its Buy rating with a Cdn$174.00 price target. Both firms highlighted growth opportunities at the Prince Rupert port, particularly in intermodal containers and energy/chemicals sectors. These developments underscore Canadian National Railway’s ongoing efforts to expand its capabilities and drive growth across its network.
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