CPR showcases success in greenhouse gas reductions CALGARY, April 22 /PRNewswire-FirstCall/ -- Showcasing its commitment to the environment during Earth Day 2005, Canadian Pacific Railway outlined measures it has taken to address climate change and greenhouse gas emissions as part of day-to-day operations. "As a company that operates through about 900 communities in Canada and the United States, we have a commitment to take care of past practices, take aggressive steps to minimize present-day activities and to implement leading-edge technology and practices to protect the environment for the future," said Neal Foot, CPR's Senior Vice-President of Operations. "Railways are part of the solution to societal issues associated with traffic congestion, pollution and the desire for continued economic growth. One train with two or three locomotives can pull enough freight to take 300 trucks off the highway." Notable CPR air emission reduction measures include the following: - The addition of new high-powered, energy-efficient AC traction road locomotives to its fleet of more than 1,600 locomotives - one of the youngest fleets in North America; - Increased use of distributed power, which involves putting locomotive units in the middle or rear of a train. The result has been more fuel-efficient trains operated when distributed power is used. - Majority of the locomotive fleet outfitted with fuel saving devices, such as stop/start technology that automatically shuts down and restarts locomotives within specified parameters - reducing emissions and fuel consumption. - The recent purchase of 35 hybrid yard locomotives known as the Green Goat(R), which reduce fuel consumption by up to 60 per cent and cut smog-causing oxides of nitrogen (NOx) and diesel particulates by as much as 90 per cent. Other measures taken by the railway to increase fuel efficiency include operational changes and network restructuring, track lubrication to reduce friction between wheels and rail, and co-production/directional running agreements with other railways. According to the Association of American Railroads (AAR), railroads move one ton of freight an average of 405 miles on a single gallon of diesel fuel - a 72 per cent improvement in fuel efficiency over the past 25 years. "The transportation sector produces one-quarter of all greenhouse gas emissions in Canada, but rail itself produces less than four per cent of the transportation sector's environmental air emissions, while hauling more than 60 per cent of Canada's goods," said Foot. "CPR is continuing to explore more technology to make our operations even greener." Foot said one area that could help the railway take more aggressive steps to reduce air emissions even further would be the elimination of fuel taxes on the rail industry by federal and provincial governments. "Right now, governments in Canada collect fuel tax from the railways and place it into general revenues that can then be poured into highway infrastructure improvements and expansion. Since governments don't fund railway infrastructure, none of the railway fuel tax is put back into our network. This policy has the effect of skewing shipper choice to a transportation mode that is less fuel-efficient. Eliminating railway fuel taxes would result in more shippers choosing rail to move their goods, resulting in even further reductions in greenhouse gases." Foot added that the United States is phasing out railway fuel taxes and will eliminate them by 2007. Canadian Railways pay about $165 million in federal and provincial fuel taxes every year. Provincial rail fuel tax rates vary across Canada. Among the provinces in which CPR operates, Saskatchewan has the highest fuel tax rate at 15 cents a litre and Alberta has the lowest rate at 1.5 cents per litre. About CPR: Canadian Pacific Railway is a transcontinental carrier operating in Canada and the U.S. Its 14,000-mile rail network serves the principal centres of Canada, from Montreal to Vancouver, and the U.S. Northeast and Midwest regions. CPR feeds directly into America's heartland from the East and West coasts. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. Canadian Pacific Logistics Solutions provides logistics and supply chain expertise worldwide. For more information, visit CPR's website at: http://www.cpr.ca/ . Media Availability/Photo Opportunity: Today (April 22, 2005), 9:30 a.m. at the CPR Depot at Gulf Canada Square in Calgary (Access off 9th Avenue at entrance to Gulf Canada Square Parkade. Stay to right, don't proceed up parkade ramp). Backgrounder ------------------------------------------------------------------------- CPR Locomotive Fleet - 1,642 Road freight locomotives - 1,124 Road switchers - 269 Yard switchers - 260 All CPR locomotives meet or exceed environmental standards set out by the U.S. Environmental Protection Agency. Locomotive Fleet Renewal In 1995, CPR began investing heavily in new Alternating Current (AC) locomotives, which improve overall fuel efficiency (approximately 18-20 per cent) over traditional locomotives. As of December 31, 2004, CPR's locomotive fleet included 582 AC locomotives, which represent approximately 52 per cent of the road fleet, but handle about 70 per cent of CPR's workload. High-adhesion alternating current (AC) locomotives are more fuel efficient and reliable and have superior haulage capacity compared to standard direct current (DC) locomotives. CPR also has the youngest road locomotive fleet of the Class 1 railroads with an average age of only 15 years. In 1998, the U.S. Environmental Protection Agency (EPA) established emission standards for nitrogen oxide, hydrocarbons, carbon monoxide, particulate matter and smoke for newly manufactured and remanufactured diesel-powered locomotives and locomotive engines. All of our newly purchased locomotives currently comply with the EPA emission standards and all locomotives remanufactured for service in the U.S. comply with these new standards. Locomotive Shutdown Technology In cold operating conditions, locomotives must idle continuously to avoid freezing. To reduce idling time, CPR is retrofitting locomotives with automatic stop-start technology. This technology automatically shuts down and restarts locomotives based on a pre-defined set of parameters, effectively reducing fuel consumption and air emissions. More than 60 per cent of the CPR fleet is equipped with locomotive shutdown technology. Locomotive Distributed Power In 2003, Canadian Pacific Railway became the first railway in Canada to operate intermodal freight trains with mid-train remote-control locomotives. During train operations, the controls of locomotives at each position are linked through data telemetry, giving the head-end crew full command at all times. The design of CPR's new, high-power alternating current locomotives allows them to be placed at the head-end and anywhere else in the train. Placing a locomotive in a remote-control position distributes tractive effort and produces performance benefits not unlike those of all-wheel drive in a highway passenger vehicle. It also boosts air pressure to ensure sufficient braking power along the entire length of the train in freezing temperatures. Hybrid Yard Switcher - Green Goat(R) Powered by batteries that are charged by a small diesel genset, the Green Goat(R) is significantly quieter than diesel locomotives. It meets the U.S. Environmental Protection Agency's Tier 2 standards for particulate matter in exhaust emissions, which came into force in 2005. RailPower Technologies said its Green Goat(R) reduces smog-causing oxides of nitrogen (NOx) and diesel particulates by as much as 90 per cent, compared with conventional yard locomotives. Locomotive Emissions Monitoring (LEM) Program CPR participates in the Railway Association of Canada (RAC) and Environment Canada memorandum of understanding regarding locomotive emissions. The RAC submits an annual report to Environment Canada on emissions of exhaust gases from locomotives used in rail transportation services in Canada. The LEM program monitors nitrogen oxide (NOx) emissions from Canadian rail carriers against an annual voluntary cap of 115 kilotonnes of NOx. The program also monitors emissions of carbon monoxide, particulate matter, carbon dioxide and sulphur oxides. The LEM program results reflect continual reduction of fuel consumption and emissions. The 2002 LEM report states that emission levels from the rail industry are 0.5 per cent below 1990 levels despite an overall business growth of 28 per cent. CPR's emissions are approximately 2.8 per cent below 1990 levels despite a 31 per cent increase in gross-ton miles in the same period. Charts available on CPR's website at http://www.cpr.ca/. DATASOURCE: Canadian Pacific Railway CONTACT: Ed Greenberg, Tel.: (403) 319-3686, Cell: (403) 540-8106,

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