CALGARY,
AB, March 20, 2024 /CNW/ - Today, Canadian
Pacific Kansas City (TSX: CP) (NYSE: CP) (CPKC) announced the
departure of John Orr, Executive
Vice President and Chief Transformation Officer. Mr. Orr will be
joining Norfolk Southern as their Chief Operating Officer.
"On behalf of the Board of Directors and the CPKC family I would
like to thank John for his contributions and impactful leadership,"
said CPKC President and Chief Executive Officer Keith Creel. "I have had the pleasure to serve
and lead with John directly or indirectly for over the last two
decades. His strong operating acumen and leadership capabilities
has enabled him to build a strong team currently leading our CPKC
Mexico Operations. As a result, the team is ready to take the reins
and continue to build on the operational momentum generated since
this historic combination took place last April. As leaders we are
charged to leave our organizations better - John has undoubtedly
impacted Kansas City Southern (KCS) and CPKC in a positive way, for
which we are grateful."
In exchange for certain considerations, CPKC has agreed to a
waiver of Mr. Orr's non-competition agreement to allow him to work
for Norfolk Southern.
CPKC and Norfolk Southern have entered into an agreement in
connection with the waiver of Mr. Orr's non-competition agreement,
which includes a one-time waiver fee of US$25 million plus certain operational and
commercial considerations related to the Meridian Speedway and the
Meridian Terminal which will expand competition and unlock
additional value related to CPKC's proposed Meridian & Bigbee
Railroad (MNBR) acquisition. Norfolk Southern has also agreed to
temporally limited no-hire and non-solicitation restrictions for a
short list of employees of CPKC. Mr. Orr will remain subject to his
non-solicitation restrictions.
Mr. Orr was appointed Executive Vice President and Chief
Transformation Officer of CPKC on April 14,
2023. Prior to this role, he served as Executive Vice
President Operations for Kansas City Southern from 2021 through
2023. The role of Chief Transformation Officer will not be replaced
and Mr. Orr's portfolio will be integrated into CPKC's existing
operational structure.
Forward looking
information
This news release contains certain forward-looking information
relating, but not limited to, anticipated benefits of the agreement
with Norfolk Southern and operational and commercial considerations
related to the Meridian Speedway and Meridian Terminal and the
proposed MNBR acquisition.
The forward-looking information that may be in this news release
is based on current expectations, estimates, projections and
assumptions, having regard to CPKC's experience and its perception
of historical trends, and includes, but is not limited to,
expectations, estimates, projections and assumptions relating to:
changes in business strategies, North American and global economic
growth and conditions; commodity demand growth; sustainable
industrial and agricultural production; commodity prices and
interest rates; performance of our assets and equipment;
sufficiency of our budgeted capital expenditures in carrying out
our business plan; geopolitical conditions, applicable laws,
regulations and government policies; the availability and cost of
labour, services and infrastructure; the satisfaction by third
parties of their obligations to CPKC; and carbon markets, evolving
sustainability strategies, and scientific or technological
developments. Although CPKC believes the expectations, estimates,
projections and assumptions reflected in the forward-looking
information presented herein are reasonable as of the date hereof,
there can be no assurance that they will prove to be correct.
Current conditions, economic and otherwise, render assumptions,
although reasonable when made, subject to greater uncertainty.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from those
expressed or implied by forward-looking information. By its nature,
CPKC's forward-looking information involves inherent risks and
uncertainties that could cause actual results to differ materially
from the forward looking information, including, but not limited
to, the following factors: changes in business strategies and
strategic opportunities; general Canadian, U.S., Mexican and global
social, economic, political, credit and business conditions; risks
associated with agricultural production such as weather conditions
and insect populations; the availability and price of energy
commodities; the effects of competition and pricing pressures,
including competition from other rail carriers, trucking companies
and maritime shippers in Canada,
the U.S. and Mexico; North
American and global economic growth and conditions; industry
capacity; shifts in market demand; changes in commodity prices and
commodity demand; uncertainty surrounding timing and volumes of
commodities being shipped via CPKC; inflation; geopolitical
instability; changes in laws, regulations and government policies,
including regulation of rates; changes in taxes and tax rates;
potential increases in maintenance and operating costs; changes in
fuel prices; disruption in fuel supplies; uncertainties of
investigations, proceedings or other types of claims and
litigation; compliance with environmental regulations; labour
disputes; changes in labour costs and labour difficulties; risks
and liabilities arising from derailments; transportation of
dangerous goods; timing of completion of capital and maintenance
projects; sufficiency of budgeted capital expenditures in carrying
out business plans; services and infrastructure; the satisfaction
by third parties of their obligations; currency and interest rate
fluctuations; exchange rates; effects of changes in market
conditions and discount rates on the financial position of pension
plans and investments; trade restrictions or other changes to
international trade arrangements; the effects of current and future
multinational trade agreements on the level of trade among
Canada, the U.S. and Mexico; climate change and the market and
regulatory responses to climate change; anticipated in-service
dates; success of hedging activities; operational performance and
reliability; customer, regulatory and other stakeholder approvals
and support; regulatory and legislative decisions and actions; the
adverse impact of any termination or revocation by the Mexican
government of Kansas City Southern de México, S.A. de C.V.'s
Concession; public opinion; various events that could disrupt
operations, including severe weather, such as droughts, floods,
avalanches and earthquakes, and cybersecurity attacks, as well as
security threats and governmental response to them, and
technological changes; acts of terrorism, war or other acts of
violence or crime or risk of such activities; insurance coverage
limitations; material adverse changes in economic and industry
conditions, including the availability of short and long-term
financing; the demand environment for logistics requirements and
energy prices, restrictions imposed by public health authorities or
governments, fiscal and monetary policy responses by governments
and financial institutions, and disruptions to global supply
chains; the realization of anticipated benefits and synergies of
the CP-KCS transaction and the timing thereof; the satisfaction of
the conditions imposed by the U.S. Surface Transportation Board in
its March 15, 2023 final decision;
the success of integration plans for KCS; other disruptions arising
from the CP-KCS integration; estimated future dividends; financial
strength and flexibility; debt and equity market conditions,
including the ability to access capital markets on favourable terms
or at all; cost of debt and equity capital; improvement in data
collection and measuring systems; industry-driven changes to
methodologies; and the ability of the management of CPKC to execute
key priorities, including those in connection with the CP-KCS
transaction. The foregoing list of factors is not exhaustive. These
and other factors are detailed from time to time in reports filed
by CPKC with securities regulators in Canada and the
United States. Reference should be made to "Item 1A - Risk
Factors" and "Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations - Forward-Looking
Statements" in CPKC's annual and interim reports on Form 10-K and
10-Q.
Any forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CPKC
undertakes no obligation to update publicly or otherwise revise any
forward-looking information, or the foregoing assumptions and risks
affecting such forward-looking information, whether as a result of
new information, future events or otherwise.
About CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line
transnational railway linking Canada, the United
States and México, with unrivaled access to major ports from
Vancouver to Atlantic Canada to the Gulf of México to
Lázaro Cárdenas, México. Stretching approximately 20,000 route
miles and employing 20,000 railroaders, CPKC provides North
American customers unparalleled rail service and network reach to
key markets across the continent. CPKC is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit
cpkcr.com to learn more about the rail advantages of CPKC.
CP-IR
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SOURCE CPKC