CALGARY, AB, July 7, 2020 /CNW/ - Canadian Pacific (TSX: CP)
(NYSE: CP) announced today its best-ever quarter and June for
moving Canadian grain and grain products. The two records are the
latest in a standout crop year of linking Canadian producers to
worldwide markets.
"The collaborative relationships CP has built with its
customers, combined with responsive rail service, have contributed
to another quarter of record-breaking grain movements," said
Joan Hardy, CP's Vice-President
Sales and Marketing Grain and Fertilizers. "We thank our customers
and CP family members who work safely and with purpose each day to
keep this essential service moving in support of the Canadian
agricultural industry. I am proud to be a CP railroader."
The two latest records are:
- In 2020's second quarter, CP moved 8.41 million metric tonnes
(MMT) of Canadian grain and grain products. This broke the previous
record of 7.9 MMT in the fourth quarter of 2019.
- In June 2020, CP moved 2.76 MMT
of Canadian grain and grain products. This broke the previous June
record of 2.4 MMT set in 2014.
CP has consistently delivered for Canadian farmers since the
start of the 2019-2020 crop year amid high demand for
transportation services. CP's strong fall and winter performance
established momentum going into spring. By March 31, CP was 6 percent ahead of where it was
at the same point in the record-setting 2018-2019 crop year, and
has continued to build on that momentum. Crop-year volumes to date
are now 8.8 percent ahead of last year's pace.
"CP continues to reliably deliver for the Canadian producers
whose products feed the world," Hardy said. "The strength of the CP
network and operating model continue to show themselves in these
achievements. We stand ready to meet what we expect will be strong
demand in the final month of the 2019-2020 crop year."
This year's successes also attest to the efficiency of the
8,500-foot High Efficiency Product (HEP) train model. An 8,500-foot
HEP train can carry in excess of 40 percent more grain than the
7,000-foot train model when combined with the additional capacity
of new high-capacity hopper cars. Customers are actively investing
in their elevator networks to accommodate 8,500-foot trains. By
year-end, more than 30 percent of the CP-serviced unit train
loaders will be 8,500-foot HEP qualified, increasing capacity and
efficiency in the grain supply chain for customers and
stakeholders.
More than 2,700 new high-capacity hopper cars are now in
service. These cars can carry 15 percent more volume and 10 percent
more weight compared to the older cars they are replacing.
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 "will", "anticipate",
"believe", "expect", "plan", "should" or similar words suggesting
future outcomes.
This news release contains forward-looking information relating,
but not limited to, our operations, priorities and plans, the
anticipated demand for grain shipping for the remainder of the
2019-2020 crop year, CP's ability to meet anticipated demand, the
impacts of COVID-19 on CP's business, the anticipated efficiency
and capacity of the HEP train model and associated facilities,
anticipated growth in our high-capacity hopper car fleet in 2020,
capital expenditures, shipment capacity, completion, the
anticipated impacts on capacity and efficiency of the HEP
qualification of CP-served train-loading facilities, and
anticipated investments in and completion of HEP qualification of
train loaders by third parties, including the percentage of
CP-serviced unit train loaders that will be 8,500-foot HEP
qualified by year-end.
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:
North American and global economic growth; commodity demand growth;
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; the satisfaction by third parties of their
obligations to CP; the anticipated impacts of the novel strain of
coronavirus (and the disease known as COVID-19); and capital
investments by third parties. 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. Current conditions, economic and otherwise, render
assumptions, although reasonable when made, subject to greater
uncertainty.
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; trade restrictions or other changes to
international trade arrangements; climate change; 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; and the pandemic created by the
outbreak of the novel strain of coronavirus (and the disease known
as COVID-19) and resulting effects on economic conditions, the
demand environment for logistics requirements and energy prices,
restrictions imposed by public health authorities or governments,
fiscal and monetary policy responses by governments and financial
institutions, and disruptions to global supply chains. 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 Statements" 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