CALGARY, Sept. 12, 2018 /CNW/ - Canadian Pacific (TSX: CP)
(NYSE: CP) is prepared to move this year's Canadian grain crop to
market, in close collaboration with its customers and the broader
supply chain – that was the message delivered today during a
roundtable session with the federal Ministers of Agriculture and
Transport.
"Today was a great opportunity to sit down with Minister
MacAulay and Minister Garneau to highlight our plans for this
upcoming crop year and show how we are dedicated to grain," said
Joan Hardy, CP's Vice-President
Sales and Marketing – Grain and Fertilizer. "Through strategic
investments, on-going collaboration and communication, and
significant planning, we have built the foundation for continued
success in grain."
The roundtable, held in Saskatoon, was an opportunity for the two
federal ministers to hear directly from companies and stakeholders
across the grain supply chain.
CP moved 25.8 million metric tonnes (MMT) of western Canadian
grain and grain products, soybeans and other non-regulated
principal field crops during the 2017-2018 crop year, up 1 percent
over the 2016-2017 crop-year and 1 percent above its three-year
average.
In its July 31, 2018 letter to
Minister of Transport, Marc Garneau,
CP published a detailed plan to move this year's crop. Based on
current forecasts, CP's operating team has a target of spotting
approximately 5,500 hopper cars for Canadian grain weekly through
the fall, until the closure of the Port of Thunder Bay on the St. Lawrence Seaway. This
target is the outcome of an efficient and effective supply chain
and is based on continued communication and collaboration. When the
seaway closes, CP plans to target approximately 4,000 cars per
week, based on the same factors. CP sizes its operating plan
carefully to match supply-chain capacity, and the plan assumes the
supply chain will run at or near capacity throughout the
season.
CP continues to invest in resources to accommodate growing
demand across its network. CP currently has more than 700 employees
in training and by the end of summer will have added more than 100
remanufactured locomotives to its fleet. CP plans to spend more
than $1.55 billion in capital
investments in 2018, replacing depleted track assets and upgrading
its network.
CP is undertaking a number of innovative steps, in collaboration
with customers and stakeholders, to further improve the efficiency
and capacity of the grain supply chain. CP is investing half a
billion dollars in 5,900 new high-capacity grain hoppers to replace
the aging low-capacity Government of Canada fleet. The company is also continuing
to develop its 8,500-foot train model in collaboration with
customers that operate elevators and destination terminals handling
the trains. These trains will be able to haul up to 20 percent more
grain per train than the current 7,000-foot model, and up to 44
percent more grain per train when combined with new high-capacity
hoppers.
These innovations build on CP's popular Dedicated Train Program
(DTP), which allows customers to lock-in dedicated unit trains to
serve their facilities for the entire crop year.
CP reiterates its call for all participants in the supply chain
to operate 24/7 through the busy fall period, and to maintain open
lines of communication with one another.
Forward Looking Statement
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited, to CP's plans and expectations with respect to
transporting grain and other crops in the 2018/2019 crop year,
capital investment, including with respect to CP's grain hopper
fleet, the implementation and results of CP's sales and marketing,
operations and technology initiatives as well as the Company's
operations, priorities and plans, anticipated performance, business
prospects, programs and strategies. 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 "Risk Factors"
and "Management's Discussion and Analysis of Financial Condition
and Results of Operations - Forward-Looking Information" in CP's
annual and interim reports on Form 10-K and 10-Q.
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 is a
transcontinental railway in Canada
and the United States with direct
links to major ports on the west and east coasts. CP provides North
American customers a competitive rail service with access to key
markets in every corner of the globe. CP is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpr.ca to see
the rail advantages of CP. CP-IR
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SOURCE Canadian Pacific