CALGARY, April 20, 2020 /PRNewswire/ - Canadian
Pacific's (TSX: CP) (NYSE: CP) first quarter of 2020 was the best
Q1 on record for Canadian grain and grain products, with more than
6.35 million metric tonnes (MMT) moved. The 2020 result breaks the
company's previous first-quarter record, set in 2016, by 300,000
metric tonnes.
"The CP family of operating employees delivers service
excellence, day in and day out," said Joan
Hardy, Vice-President Sales and Marketing Grain and
Fertilizers. "Whether it's our employees operating the trains that
bring railcars to the elevators, the teams that plan our train
movements, or those who maintain our tracks and infrastructure,
everyone is making sure assets are turned safely and efficiently.
The COVID-19 pandemic has brought challenges to their work, but it
has also strengthened their commitment to delivering. The combined
efforts across CP, supply chain efficiency and a strong demand
environment from our customers contributed to these records. Now
more than ever, keeping the grain supply chain moving is critical
to the wellbeing of North America
and the world."
First quarter monthly tonnage results:
- January: 2.09 MMT (best-ever January)
- February: 1.76 MMT
- March: 2.50 MMT (best-ever March)
As of March 31, 2020, CP's
movement of grain for the 2019-2020 crop year was 18.53 MMT, a 6
percent increase compared to last crop year.
The supply chain advancements by CP and its customers are
yielding significant productivity gains from field to rail to port.
CP's investment in high-capacity hopper cars will see 5,900 new
cars added to the railway's grain shipping fleet. CP's fleet of new
grain cars, now at more than 2,500, is adding more than 1.1 tonnes
of extra grain per railcar compared to the same period last year.
The new hopper cars can carry 10 percent more volume and 15 percent
more weight compared to the older cars they are replacing.
An 8,500-foot High Efficiency Product (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 the new hopper cars.
Customers are actively investing in their elevator networks to
accommodate 8,500-foot trains. There are currently 14 elevators on
CP's Canadian network that are 8,500-foot HEP qualified, and 14
more projects underway. 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.
"We're committed to delivering for our customers and farmers as
seeding activities ramp up across western Canada," said Hardy. "With significant volumes
of fertilizer and potash shipped in 2020 to date, our customers are
well-positioned for application as part of the spring planting
processes. I wish farmers a successful and prosperous season."
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 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,
completion and the anticipated impacts on capacity and efficiency
of the HEP qualification of CP-served train-loading facilities, and
performance by and investments in the Canadian grain supply chain
by CP and third-party shippers.
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; and the anticipated impacts of COVID-19.
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