Targeted Investments Part of Multi-Year Plan to Expand and
Enhance the Efficiency, Flexibility, Capacity and Safety of
the CP Rail Network
CALGARY, Jan. 17, 2012
/PRNewswire/ - Canadian Pacific Railway Limited (TSX: CP)(NYSE: CP)
today announced that, as part of the Company's Multi-Year Plan, CP
will invest between $1.1 billion and $1.2
billion for infrastructure renewal, network enhancements and
expansion projects in 2012. The 2012 Capital Plan will focus on
strategic and targeted investments to improve service and increase
network capacity while funding business development and initiatives
with rapid return on investment.
Fred Green, CP President &
CEO, said "At CP, we are executing our accelerated multi-year
investment plan, to further improve service reliability, asset
velocity, and operational efficiency, while expanding capacity to
safely and efficiently support higher volumes. We are
confident that the investments we are making under our 2012 Capital
Plan will allow us to achieve a low 70s operating ratio in the next
three years."
Major investment categories include the following approximate
amounts:
- $800 million to preserve existing
capacities through replacement or renewal of depleted assets;
- $275 million for network capacity
expansions, business development projects and productivity
initiatives; and
- $50 million to address capital
regulated by governments, principally train control.
Note on forward-looking information
This news release contains certain forward-looking statements
relating but not limited to our operations, anticipated financial
performance and business prospects. Undue reliance should not
be placed on forward-looking information as actual results may
differ materially.
By its nature, CP's forward-looking information involves
numerous assumptions, inherent risks and uncertainties, including
but not limited to the following factors: changes in business
strategies; general North American and global economic, credit and
business conditions; risks in agricultural production such as
weather conditions and insect populations; the availability and
price of energy commodities; the effects of competition and pricing
pressures; industry capacity; shifts in market demand; inflation;
changes in laws and regulations, including regulation of rates;
changes in taxes and tax rates; potential increases in maintenance
and operating costs; uncertainties of investigations, proceedings
or other types of claims and litigation; labour disputes; risks and
liabilities arising from derailments; transportation of dangerous
goods; timing of completion of capital and maintenance projects;
currency and interest rate fluctuations; effects of changes in
market conditions and discount rates on the financial position of
pension plans and investments, including long-term floating rate
notes; and various events that could disrupt operations, including
severe weather, droughts, floods, avalanches and earthquakes as
well as security threats and governmental response to them, and
technological changes. Other risks are detailed from time to
time in reports filed by CP with securities regulators in
Canada and the United States. Reference should be
made to "Management's Discussion and Analysis" in CP's annual and
interim reports, Annual Information Form and Form 40-F.
Except as required by law, CP undertakes no obligation to update
publicly or otherwise revise any forward-looking information,
whether as a result of new information, future events or
otherwise.
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) operates a North American
transcontinental railway providing freight transportation services,
logistics solutions and supply chain expertise. Incorporating
best-in-class technology and environmental practices, CP is
re-defining itself as a modern 21st century transportation company
built on safety, service reliability and operational efficiency.
Visit cpr.ca and see how Canadian Pacific is Driving the Digital
Railway.
SOURCE Canadian Pacific