OTTAWA, April 1, 2014 /CNW/ - This evening Canadian
Pacific's (TSX: CP) (NYSE: CP) President and Chief Operating
Officer Keith Creel provided his
comments on Bill C-30 to the Standing Committee on Agriculture. Mr.
Creel encouraged the Committee to consider the serious capacity
constraints within the current grain supply chain and highlighted
that interswitching would worsen the situation for the movement of
Canadian grain to markets.
"The reality is the current grain supply chain, of which rail is
only one component, cannot move these extraordinary volumes over
this short period of time," said Creel. "We need solutions that
will increase throughput of grain from farm to ship."
Mr. Creel also addressed CP's operating performance this crop
year. CP moved record grain volumes last fall which was later
impacted by the extraordinary cold temperatures in December and
January. With the improved weather, the railway has regained
momentum, moving 15% more Western Canadian grain in February and
20% more in March than the previous year.
With respect to the proposed extended interswitching, Mr. Creel
expressed concerns with its potentially damaging unintended
consequences and how it would slow down the grain supply chain due
to increased handlings, further constraining capacity. He noted
that allowing grain to be interswitched to U.S railroads could also
potentially lead to a negative impact on the Canadian economy.
"I am proud of the railroaders who continue to work tirelessly
24-7 to move this record Canadian crop for the farming community,"
added Creel. "Despite this fact, our efforts need to be
matched by other partners in the supply chain. We should not allow
railcars to sit, waiting to be loaded or unloaded, when they should
be cycling back to the Prairies or to the Ports."
CP is asking all supply chain partners to engage in a
collaborative dialogue to find immediate solutions which will
create longer term capacity in the grain supply chain.
Note on forward-looking information
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited to, the entering into of the Plan, purchases of common
shares for cancellation under CP's share repurchase program and
future sources of capital. This forward-looking information also
includes, but is not limited to, statements concerning
expectations, beliefs, plans, goals, objectives, assumptions and
statements about possible future events, conditions, and results of
operations or performance. Forward-looking information may contain
statements with words or headings such as "financial expectations",
"key assumptions", "anticipate", "believe", "expect", "plan",
"will", "outlook", "should" or similar words suggesting future
outcomes.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from the
forward-looking information. Forward-looking information is not a
guarantee of future performance. By its nature, CP's
forward-looking information involves numerous assumptions, 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;
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; changes in
commodity prices; uncertainty surrounding timing and volumes of
commodities being shipped via CP; 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; 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. The foregoing list of
factors is not exhaustive.
These and other factors 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. Readers are
cautioned not to place undue reliance on forward-looking
information. Forward-looking information is based on current
expectations, estimates and projections and it is possible that
predictions, forecasts, projections, and other forms of
forward-looking information will not be achieved by CP. 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) is a transcontinental railway
in Canada and the United States with direct links to eight
major ports, including Vancouver
and Montreal, providing North
American customers a competitive rail service with access to key
markets in every corner of the globe. CP is a low-cost provider
that is growing with its customers, offering a suite of freight
transportation services, logistics solutions and supply chain
expertise. Visit www.cpr.ca to see the rail advantages of Canadian
Pacific.
SOURCE Canadian Pacific