CALGARY,
AB and JACKSONVILLE,
Fla., June 22, 2023 /CNW/ - Canadian Pacific
Kansas City (TSX: CP) (NYSE: CP) (CPKC) and CSX Corporation
(NASDAQ: CSX) (CSX) today announced their intent to enter into a
joint venture for the building and deployment of hydrogen
locomotive conversion kits for diesel electric locomotives.
As an initial step in the collaboration, CSX plans to convert
one of its diesel locomotives using a hydrogen conversion kit
developed by CPKC. The conversion work will be done at CSX's
Huntington, West Virginia
locomotive shop.
"This innovative collaboration expands our hydrogen locomotive
program beyond a single railroad and represents an exciting next
step in proving the long-term viability of hydrogen as a solution
to emissions reduction for our industry," said Keith Creel, CPKC president and chief executive
officer. "Our hydrogen locomotive went from concept to reality in
24 months with the first zero emissions hydrogen locomotive having
already pulled freight in revenue service. We look forward to this
collaboration as we work to create a lower carbon
future."
"CSX looks forward to working as a partner with CPKC in the
development of the hydrogen locomotive program as it demonstrates
our commitment to implementing alternative fuel solutions that
could further enhance our emissions performance and offer our
customers an even more environmentally-friendly transportation
solution," said Joe Hinrichs, CSX
president and chief executive officer. "This exciting initiative
will greatly benefit from the expertise of CSX's advanced,
large-scale facilities, where the locomotives will be built."
Nearly the entire freight locomotive fleet of all railway
operators in North America
consists of diesel-powered units, representing the industry's most
significant source of greenhouse gas emissions. Rail has an
important role to play in a lower carbon economy and the industry
needs a long-term, effective alternative fuel solution.
In December 2020, Canadian Pacific
(CP) announced plans to develop North
America's first line-haul hydrogen-powered locomotive by
retrofitting a diesel freight locomotive with hydrogen fuel
cells and battery technology to drive the locomotive's electric
traction motors. The prototype, designed and built by in-house
CP engineers, made its first movement under its own power in late
2021. By the end of 2022, the locomotive had made its first revenue
moves and now has accumulated more than 1,000 miles of testing in
revenue service.
CPKC has deployed a second hydrogen locomotive for testing in
terminal operations, a program expansion supported by funding
awarded by Emissions Reduction Alberta and the Government of Canada
Low Carbon Economy Fund. The second hydrogen locomotive is expected
to enter service later in 2023.
Forward looking
information
This news release includes certain forward-looking statements
and forward looking information (collectively, "FLI") within the
meaning of applicable securities laws in both the U.S. and
Canada. Any statements about the
parties' expectations, beliefs, plans, goals, targets, predictions,
forecasts, objectives, assumptions, information and statements
about possible future events, conditions and results of operations
or performance are not historical facts and may be forward-looking.
FLI in this news release includes, but is not limited to, plans or
objectives of management for future operations; information
regarding sustainability-related actions the parties plan to take
in the future, including the parties' commitments and targets
relating to GHG emissions reduction; plans and expectations
regarding CPKC's integration of KCS; and the parties' ability to
work with governments and third parties in our efforts to mitigate
the impacts of climate change; and assumptions underlying or
relating to any of the foregoing. FLI is often, but not always,
made through the use of words or phrases such as "anticipates",
"aims", "believes", "can", "could", "may", "predicts", "potential",
"should", "will", "estimates", "plans", "projects", "continuing",
"ongoing", "expects", "intends", "outlook", "guidance" and similar
words or phrases suggesting future outcomes or statements regarding
an outlook.
This news release contains forward-looking information relating,
but not limited, to, the planned collaboration between CPKC and CSX
to develop additional hydrogen locomotives, the anticipated impacts
of the collaboration on levels of carbon emissions, the anticipated
date the second hydrogen locomotive is expected to enter into
service, and other related matters associated with providing an
effective solution to diesel locomotives.
FLI is based on current assumptions about the parties'
businesses and their strategies as well as economic, political,
regulatory, market and environmental conditions affecting them.
Although the parties believe the assumptions reflected in the
forward-looking information presented in this report are reasonable
as of the date hereof, there can be no assurance that they may
prove to be correct. Readers should not put undue reliance on
forward-looking information, as it is not a guarantee of future
performance. Forward-looking information involves many inherent
risks and uncertainties that could cause actual results to differ
materially from the forward-looking information, including but not
limited to the factors that are detailed from time to time in
reports we file with the securities regulators in Canada and with the U.S. Securities and
Exchange Commission (SEC) in the United
States. Reference should be made to "Item 1A - Risk Factors"
and "Item 7 - Management's Discussion and Analysis of Financial
Condition and Results of Operations - Forward-Looking Statements"
in CPKC's annual and interim reports on Form 10-K and 10-Q.
In addition, the parties' environmental, social, governance and
sustainability priorities, policies, practices, programs, goals and
objectives (including commitments and targets relating to GHG
emissions reduction) remain under development as we continue to
refine our analysis of and response to potential future climate and
other risks and opportunities, and as the science, data and
methodology underlying our analysis and strategy continue to evolve
over time.
Further, as CPKC continues to integrate the operations of KCS
into CPKC, CPKC is conducting additional data-gathering and intend
to further assess the climate and other environmental, social,
governance and sustainability strategies and initiatives for the
combined company, and may make changes to our existing strategies
and initiatives as a result.
For these reasons, in future disclosures, CPKC may include
information that differs from those contained in this report.
Unless indicated otherwise or the context otherwise requires,
forward-looking information in this report speaks only as of the
date hereof. Except as required by law, the parties undertake 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 CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line
transnational railway linking Canada, the United
States and México, with unrivaled access to major ports from
Vancouver to Atlantic Canada to the Gulf of México to
Lázaro Cárdenas, México. Stretching approximately 20,000 route
miles and employing 20,000 railroaders, CPKC provides North
American customers unparalleled rail service and network reach to
key markets across the continent. CPKC is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpkcr.com to
learn more about the rail advantages of CPKC. CP-IR
About CSX
CSX, based in Jacksonville,
Florida, is a premier transportation company. It provides
rail, intermodal and rail-to-truck transload services and solutions
to customers across a broad array of markets, including energy,
industrial, construction, agricultural and consumer products. For
nearly 200 years, CSX has played a critical role in the nation's
economic expansion and industrial development. Its network connects
every major metropolitan area in the eastern United States, where nearly two-thirds of the
nation's population resides. It also links more than 230 short-line
railroads and more than 70 ocean, river and lake ports with major
population centers and farming towns alike. More information about
CSX Corp. and its subsidiaries is available
at www.csx.com.
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SOURCE CPKC