CN to invest $20 million in Indiana rail infrastructure in 2025

Published 12/06/2025, 15:06
CN to invest $20 million in Indiana rail infrastructure in 2025

HOMEWOOD, Ill. - Canadian National Railway (TSX: CNR) (NYSE: CNI), a $65.6 billion market cap company and prominent player in the North American ground transportation industry, announced plans to invest approximately $20 million in Indiana during 2025 as part of its annual capital investment program, according to a company press release.

The investment will focus on track maintenance and strategic infrastructure initiatives to enhance capacity and upgrade rolling stock across the state. These improvements aim to ensure safe goods transportation and support sustainable growth in Indiana and throughout CN’s network. According to InvestingPro data, CN maintains impressive gross profit margins of nearly 55% and has consistently raised its dividend for 29 consecutive years, demonstrating its commitment to both operational excellence and shareholder returns.

This follows CN’s approximately $28 million investment in Indiana during 2024, which included over $2 million for upgrades to the Kirk railyard and about $400,000 for equipment purchases such as vehicles and tractors.

"Our continued infrastructure investment in Indiana will help strengthen the resiliency and efficiency of our network across the state," said Tracy Robinson, President and Chief Executive Officer of CN.

U.S. Congressman Rudy Yakym of Indiana’s 2nd Congressional District commented on the announcement, noting CN’s role in supporting the state’s manufacturing and agricultural industries.

CN currently employs approximately 419 people in Indiana and operates 102 miles of railroad routes in the state. In 2024, the company reported $66 million in local spending and $4.7 million in cash taxes paid in Indiana.

CN transports more than 300 million tons of goods annually across its nearly 20,000-mile rail network, which connects Canada’s Eastern and Western coasts with the U.S. Midwest and Gulf Coast.

The company’s statement noted that the investment is part of CN’s broader strategy to maintain safe operations and support economic growth in communities where it operates.

In other recent news, Canadian National Railway (CN) announced several significant investments as part of its 2025 capital investment program. The company plans to allocate approximately $170 million in Illinois, focusing on track maintenance and the development of the Chicago Logistics Hub. Additionally, CN will invest around $75 million in Mississippi for infrastructure improvements and $80 million CAD in Atlantic Canada to enhance rail facilities. These investments aim to bolster the efficiency and sustainability of CN’s extensive rail network.

On the financial front, Citi analysts raised their price target for CN to $124.00, citing the company’s competitive advantage at the Prince Rupert facility. This facility is expected to grow its volume at a 10% annualized rate through 2027. BMO Capital also maintained an Outperform rating for CN, highlighting the potential for strong growth in volumes through the Prince Rupert gateway. These recent developments reflect CN’s strategic focus on long-term growth and infrastructure enhancement.

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