Canadian Pacific Railway Limited’s investments in rail, locomotives and other capital expenditures totaled CAD1,551 million in 2021.

Such amount was 8.1% lower compared to its 2020 benchmark and 6.8% lower compared to 2019.

For starters, additions of $970 million in 2021 (2020: $1,161 million), approximately $907 million (2020: $1,008 million) were spent on refurbishing depleted assets, namely rail, sleepers, ballast, signals, and bridges.

Additionally, Canadian Pacific spent approximately $10 million (2020: $25 million) on positive train control compliance requirements and invested $53 million (2020: $128 million) on network improvements and growth initiatives.

In 2021, its locomotive spending was $121 million (2020: $126 million) and focused on continued reinvestment in Canadian Pacific’s existing locomotive fleet.

Railcar investment of about $176 million (2020: $127 million) focused primarily on refurbishing depleted assets, including the acquisition of covered grain hoppers.

Canadian Pacific

Also in 2021, the company invested $47 million (2020: $45 million) in information systems software focused primarily on streamlining and improving business systems and providing real-time data.

Ultimately, building investments were $105 million (2020: $103 million) and included items such as facility upgrades, renovations, and store equipment.

Other items totaled $132 million (2020: $126 million) and included investments in containers, work equipment, and vehicles.

By 2022, Canadian Pacific expects to invest $1.55 billion in its capital programs, which will be funded by cash generated from operations.

Approximately 60-70% of planned capital programs are for roads and highways.

The company projects that 15-20% will be allocated to rolling stock, including rail cars and locomotive upgrades.

Likewise, the company expects that 5% will be assigned to information services and another 5% to buildings, while the category of other investments would have a coverage of 5 to 10 percent.

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