CALGARY, June 4, 2019 /PRNewswire/ - On the strength of
its operating model and the power of its 13,000-strong CP family,
Canadian Pacific (TSX: CP) (NYSE: CP) continues to set records for
the movement of Canadian grain. As of the end of May 2019, CP has moved 22.5 million metric tonnes
(MMT) of Canadian grain and grain products since the start of the
2018-2019 crop year.
"Since August of last year, we have moved approximately 500,000
metric tonnes more grain than ever before, bettering our record at
this time back in the 2015-2016 crop year," said CP Vice-President
Sales and Marketing, Grain and Fertilizers, Joan Hardy. "We continue to innovate in close
collaboration with our customers and supply chain enablers, and we
look forward to delivering for farmers and the North American
economy as we close out this crop year and prepare for the
next."
To Vancouver, a high-priority
outlet for the flow of export grain from Canada, CP moved 15.0 MMT through the end of
May, breaking the prior record set in the 2016-2017 crop year by 5
percent. May was also a record month for grain products, not
including whole grains, both from a carload and a volume
perspective. April 2019 was an
all-time record month for Canadian grain and grain products as CP
moved a best-ever 2.643 MMT, bettering the previous record from
October 2018. In November of last
year, the company broke its previous record for carloads of Western
Canadian grain and grain products shipped to the Port of
Vancouver in a single month, with
17,150.
CP now has over 1,000 new, high-capacity hopper cars in its
fleet and at year's end, more than 1,900 of the new hopper cars
will be in service. The fleet will continue to grow in the years
ahead, as part of CP's $500 million
commitment to invest in 5,900 of the new hopper cars. Shippers are
able to load up to 10 percent more grain in these cars compared to
the older, less efficient hopper cars they are replacing.
CP's 8,500-foot High Efficiency Product (HEP) train model,
announced last summer, is gaining significant traction with CP
customers. Construction is currently underway at five
CP-served facilities, enabling them to start shipping under the HEP
train model this fall, adding to the seven existing CP-served
8,500-foot loop track facilities. Four more 8,500-foot
HEP-qualified facilities will be operating by the spring of
2020.
"By the spring of next year, 20 percent of CP's unit train
elevator network will be loading the highly-efficient 8,500-foot
HEP trains, which, coupled with the new hopper cars, can move up to
44 percent more grain per train," said Hardy. "Together with our
customers, we are creating capacity and driving efficiencies in the
grain supply chain. We look forward to welcoming many more
8,500-foot HEP train loading facilities in the years to come."
Note on forward-looking information
This news release contains certain forward-looking information
and forward-looking statements (collectively, "forward-looking
information") within the meaning of applicable securities laws.
Forward-looking information 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. This news
release contains forward-looking information relating, but not
limited to, the success of our business, our operations, priorities
and plans, and anticipated financial and operational performance,
including with respect to our continued success in Q2 2019 and
beyond and the timing, capacity and success of the HEP train model
and associated facilities.
The forward-looking information contained in this news release
is based on current expectations, estimates, projections and
assumptions, having regard to CP's experience and its perception of
historical trends, and includes, but is not limited to,
expectations, estimates, projections and assumptions relating to:
foreign exchange rates, effective tax rates, land sales and pension
income; North American and global economic growth; 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; applicable laws, regulations and
government policies; the availability and cost of labour, services
and infrastructure; and the satisfaction by third parties of their
obligations to CP. Although CP 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.
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,
CP'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; general
North American and global economic, 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; 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,
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; 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; trade restrictions or other changes to international
trade arrangements; climate change; and 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. 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.
The forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CP
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 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
View original
content:http://www.prnewswire.com/news-releases/through-communication-collaboration-and-innovation-record-2018-2019-crop-year-momentum-continues-through-may-300861448.html
SOURCE Canadian Pacific