CALGARY, Jan. 6, 2020 /CNW/ - Canadian Pacific (TSX: CP)
(NYSE: CP) moved more Canadian grain and grain products in 2019's
final quarter than any prior quarter in the company's history.
Shipping totals came in at 7.9 million metric tonnes (MMT) of
Canadian grain and grain products, breaking the company's prior
quarterly record from the 2018 fourth quarter by 400,000 metric
tonnes:
- October: 2.66 MMT (second-best month on record)
- November: 2.74 MMT (an all-time monthly record)
- December: 2.50 MMT (the best-ever December)
As of Dec. 31, 2019, CP's movement
of grain for the 2019-2020 crop year was 12.17 MMT, up 2.1 percent
over last year. The 2019 calendar year, which includes portions of
two separate crop years, was a record at 27 MMT.
"2019 has been a banner year for CP and the Canadian grain
supply chain despite the challenging economic and environmental
conditions," said Joan Hardy, CP's
Vice-President Sales and Marketing, Grain and Fertilizers. "These
month-after-month records are a testament to the hard work from
everyone involved: from field to rail to port, all stakeholders
have collaborated closely to ensure we are delivering for farmers
and the Canadian economy."
CP now has more than 2,170 new high-capacity hopper cars in its
fleet and plans to have 3,300 cars by the end of 2020. These cars
are part of CP's plan to spend approximately $500 million on acquiring 5,900 new hopper cars
over four years, as announced in June
2018. The high-efficiency hopper cars are contributing to
the capacity that CP is offering for the movement of grain.
Shippers are loading more than one tonne of extra grain per car
compared to the same period last year.
CP's 8,500-foot High Efficiency Product (HEP) train model is a
significant factor in CP's record-breaking quarter. As of today, 15
percent of the high-throughput elevators that CP services are
handling these longer, high-efficiency trains, which can carry up
to 44 percent more grain per train. By the end of 2020, it is
expected that more than a quarter of CP-served train-loading
facilities will be HEP-qualified.
"The CP team has worked hard to support our customers' supply
chains through this challenging fall," said Hardy. "Late harvest,
rainy periods in Vancouver and
other disruptions threatened to slow the movement, but tight
planning with customers enabled us to keep the grain moving. We
recognize that there is crop left to harvest in spring due to the
wet conditions this past fall, and the entire supply chain will
need to work together to maximize its efficiency and move the
balance of the crop. With the investments made in facilities and in
the supply chain by CP and shippers, I'm confident that the
Canadian grain industry will continue to deliver strongly and
efficiently."
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, our anticipated financial and
operational performance and efficiency of the HEP train model and
associated facilities, including growth in our high-capacity hopper
car fleet in 2020 and beyond, capital expenditures, shipment
capacity, labour and employment plans, HEP qualification of
CP-served train-loading facilities, performance by and investments
in the Canadian grain supply chain by CP and third-party shippers,
and the ability to meet the demands of shipping customers in
Canada's agricultural sector and
cooperation with other stakeholders in the grain supply chain.
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; our ability to complete our capital
and maintenance projects on the timelines anticipated; 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
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SOURCE Canadian Pacific