CALGARY, AB, June 2, 2020 /CNW/ - Canadian Pacific (TSX: CP)
(NYSE: CP) set a new record for shipping Canadian grain and grain
products in May, moving 2.80 million metric tonnes (MMT). This new
record beats the May 2014 record by
more than 300,000 metric tonnes. As of May
31, 2020, CP's movement of grain for the 2019-2020 crop year
was 24.17 MMT.
"The CP family has continued to deliver service excellence to
our customers in this COVID-19 environment," said Mark Redd, CP Executive Vice-President
Operations. "CP's operating teams in the field who serve country
elevators and port terminals have risen to the challenge and
created an environment of constructive tension that is pushing
everyone to deliver. We are finding further efficiencies in every
aspect of the business, creating quicker hopper car cycles, longer
trains, lower dwell and faster train speeds."
The grain supply chain has seen capacity growth throughout as a
result of increased efficiencies. Fueled by CP's investment in
hopper cars, the 8,500-foot High Efficiency Product (HEP) train and
available capacity, CP is shipping more Canadian grain and grain
products than ever before. CP now has nearly 2,700 new
high-capacity hopper cars in service. The new hopper cars can carry
15 percent more volume and 10 percent more weight compared to the
older cars they are replacing. 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 the new 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.
According to Canadian grain industry metrics, CP has 54 percent
of the elevator network market share, as measured by share of
grain moved crop year to date. CP has moved 7.3 percent more grain
and grain products this crop year as compared to last crop year,
and 10.0 percent more than the three-year average.
"CP's customers are embracing the capacity and efficiency of the
8,500-foot HEP train model and benefiting from the overall fluidity
of the network," said Joan Hardy, CP
Vice-President Sales and Marketing Grain and Fertilizers. "Our
customers have invested at their CP-served facilities through
building new high-throughput elevators and through expanding and
re-configuring existing elevators. The record grain volumes moved
so far this crop year highlight the collaboration and partnership
between CP and our customers and are symbolic of the value of the
capacity we are generating together."
CP spotted more than 6,000 cars each week in the late-April and
early-May grain shipping weeks 39, 40 and 41, exceeding CP's plan
of 5,700 cars supplied per week. Demand for railcars has only
slowed because of seasonal seeding activities, which have
temporarily reduced grain deliveries to country elevators. With 10
weeks remaining in the 2019-2020 shipping season, CP is well
positioned to serve the Canadian agricultural industry and
anticipates spotting at least 5,700 cars per week for the remaining
shipping 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 demand for grain shipping for the remainder of the
2019-2020 crop year, , the impacts of COVID-19 on CP's business,
the anticipated efficiency of the HEP train model and associated
facilities, including anticipated growth in our high-capacity
hopper car fleet in 2020, capital expenditures, shipment capacity,
completion, anticipated number of cars to be spotted per week for
the remaining shipping season, the anticipated impacts on capacity
and efficiency of the HEP qualification of CP-served train-loading
facilities, and anticipated investments in elevator networks by
third parties.
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