Canadian Pacific assumes operational control of DM&E Railroad
30 Ottobre 2008 - 3:48PM
PR Newswire (US)
CALGARY, Oct. 30 /PRNewswire-FirstCall/ -- Canadian Pacific Railway
Limited (TSX/NYSE: CP) today celebrated the first day of
operational control of recently acquired Dakota, Minnesota &
Eastern Railroad Corporation and its subsidiaries: Iowa, Chicago
& Eastern Railroad and Cedar American Rail Holdings. "This is a
significant day for Canadian Pacific, DM&E, IC&E and Cedar
American Rail Holdings as it marks our acquisition of the largest
and one of the most successful regional railroads in North
America," said CP President and Chief Executive Officer Fred Green.
"We acquired the DM&E and IC&E railroads because of the
opportunity for sustained double-digit top-line and EBITDA growth.
Given the year-to-date performance, and our current outlook, we are
anticipating that it will surpass our estimate of $0.15 to $0.17
contribution to our 2008 earnings per share." "The DM&E's speed
to market, operational efficiency and organic growth reinforces our
confidence in the strength and potency of this acquisition," added
Green. "The two networks belong together, the union of which will
open up enhanced opportunities for shippers." U.S. Senator John
Thune noted: "The additional markets that will be available to rail
shippers through Canadian Pacific's extensive rail network will
create jobs, increase the market for South Dakota agricultural
goods and value-added products, and improve our capability to
transport products produced in South Dakota." "It's clear that
South Dakota and the entire upper great plains are in need of
increased shipping infrastructure, and rail can be a cost effective
and efficient means to ship a range of agricultural products," said
South Dakota Congresswoman Stephanie Herseth Sandlin. "I look
forward to working with Canadian Pacific to encourage expanded rail
capacity in our state and provide increased shipping alternatives
for our producers." "We truly appreciate the relationship we've had
with the DM&E and look forward to a great relationship with
Canadian Pacific," said Southern Grainbelt Shippers Association
Secretary-Treasurer Randy Rieke from Hanska, MN. "We see the
expanded reach offered through CP into markets we rely upon as a
big plus for our shippers." South Dakota Wheat Growers CEO, Dale
Locken, added further: "We look forward to extended access to
directly-served CP markets in Canada and the Eastern U.S. The
single line haul opportunities will increase fluidity and enhance
rail service." "With the acquisition complete, we look to start
building on the improvements the DM&E has already made in
operating efficiency and safety," said CP Executive Vice President
and CFO Kathryn McQuade. "Over the next three years we will invest
US$300M into the DM&E and IC&E networks. This capital
investment reinforces our commitment to safe and fluid operations
for our shareholders, our employees, our customers and the
communities we serve." "Our state and region will greatly benefit
from an additional Class I Railroad. South Dakota's rural economy
relies on the availability of rail service to carry manufactured
products and agricultural goods to market," Senator Thune
continued. "I applaud the DM&E and IC&E railroads for their
hard work over the years in establishing a very successful regional
railroad, and look forward to building a relationship with Canadian
Pacific who, throughout the acquisition process, has shown a strong
commitment to the people of South Dakota and our region." "Our City
and the DM&E have enjoyed a great relationship over the years,"
said Huron, SD Mayor David McGirr. "And, we've been impressed with
Canadian Pacific's efforts to work with us over the last year. We
were especially pleased to learn of their plans to invest heavily
in track improvement. That kind of a commitment to our
transportation infrastructure is critical to our region's economic
vitality." The DM&E is the largest regional railroad in the
U.S. and the only Class II railroad that connects and interchanges
traffic with all seven Class I railroads, connecting with Canadian
Pacific at Minneapolis, Winona, MN and Chicago. It is headquartered
in Sioux Falls, SD and has approximately 1,100 employees, 2,500
miles of track, including approximately 500 miles of trackage
rights, and rolling stock that includes 7,200 rail cars and 150
locomotives. The DM&E serves eight states: Illinois, Iowa,
Minnesota, Missouri, Nebraska, South Dakota, Wisconsin and Wyoming
with access to Chicago, Minneapolis/St. Paul, Kansas City and key
ports. The STB first announced its decision on September 30, 2008.
Regulations stipulated a 30-day administrative period whereby
registered participants could file final requests for information,
clarification or conditions. The STB today confirmed its decision
and the acquisition process is complete. About Canadian Pacific
Canadian Pacific, through the ingenuity of its employees located
across Canada and in the United States, remains committed to being
the safest, most fluid railway in North America. Our people are the
key to delivering innovative transportation solutions to our
customers and to ensuring the safe operation of our trains through
the more than 900 communities where we operate. Come and visit us
at http://www.cpr.ca/ to see how we can put our ingenuity to work
for you. Canadian Pacific is proud to be the official rail freight
services provider for the Vancouver 2010 Olympic and Paralympic
Winter Games. Note on forward-looking information This news release
contains certain forward-looking statements relating but not
limited to the proposed acquisition transaction, anticipated
financial performance and business prospects. Undue reliance should
not be placed on forward-looking information as actual results may
differ materially. By its nature, Canadian Pacific's
forward-looking information involves numerous assumptions, inherent
risks and uncertainties, including but not limited to the following
factors: changes in business strategies; general North American and
global economic 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 laws and regulations, including
regulation of rates; changes in taxes and tax rates; potential
increases in maintenance and operating costs; uncertainties of
litigation; labour disputes; risks and liabilities arising from
derailments; timing of completion of capital and maintenance
projects; currency and interest rate fluctuations; effects of
changes in market conditions on the financial position of pension
plans and investments, and various events that could disrupt
operations, including severe weather conditions, security threats
and governmental response to them, and technological changes. There
are factors that could cause actual results to differ from those
described in the forward-looking statements contained in this news
release. These more specific factors are identified and discussed
in the Outlook section and elsewhere in this news release with the
particular forward-looking statement in question. Except as
required by law, Canadian Pacific undertakes no obligation to
update publicly or otherwise revise any forward-looking
information, whether as a result of new information, future events
or otherwise. /NOTE TO PHOTO EDITORS: A photo accompanying this
release is available on the CNW Photo Network and archived at
http://photos.newswire.ca/. Additional archived images are also
available on the CNW Photo Archive website at
http://photos.newswire.ca/. Images are free to accredited members
of the media/ DATASOURCE: Canadian Pacific Railway CONTACT: Media:
Mike LoVecchio, Tel.: (778) 772-9636, e-mail: ; Investment
Community: Janet Weiss, Tel.: (403) 319-3591, e-mail:
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