CALGARY, AB, Aug. 5, 2020 /PRNewswire/ - Canadian Pacific
(TSX: CP) (NYSE: CP) today announced it hauled more Canadian grain
and grain products in the 2019-2020 crop production year than any
in its 139-year history. In total, CP moved 29.52 million metric
tonnes (MMT) this crop year, exceeding last year's record of 26.77
MMT by 2.75 MMT, or 10 percent.
"The world depends on Canadian farmers for food and we
understand the important role CP and the grain supply chain play in
getting crops to market," said Keith
Creel, CP's President and Chief Executive Officer. "In this
banner crop year, the men and women of CP proved again they're more
than ready for the task. I am immensely proud of the CP family and
the entire grain supply chain in delivering a second consecutive
crop-year record, and by such a significant margin. This truly
shows the value of CP's capacity for the movement of grain."
In addition to the record crop year, CP announced today its
best-ever July for transporting Canadian grain and grain products,
with 2.58 MMT hauled. The July record is CP's ninth monthly record
set during the 2019-2020 crop year.
This year's successes are a testament to the efficiency of the
8,500-foot High Efficiency Product (HEP) train model. 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 CP's new high-efficiency 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-served unit
train loaders will be 8,500-foot HEP qualified, increasing capacity
and efficiency in the grain supply chain for customers and
stakeholders.
Shipping containers also played an important role in exporting
Canada's crop. This year, CP moved
more than 650,000 metric tonnes of western Canadian grain to export
markets in containers. With containerized grain included in the
total, CP transported more than 30 MMT during the crop year.
"Viterra depends on efficient, reliable transportation
year-round," said Kyle Jeworski,
President and Chief Executive Officer of Viterra. "With CP's
8,500-foot HEP train model, Viterra can move more grain with each
train, creating efficiencies for the whole supply chain. And CP's
reliable service throughout the crop year helped enable Viterra to
meet our customers' needs. I look forward to CP's and Viterra's
shared success in meeting the demands of our Canadian farmers and
global customers in the coming crop year."
CP continues to take delivery of high-capacity grain hopper cars
as part of a half-billion-dollar commitment in 2018 to purchase
5,900 of the newest-generation railcars. The new cars can carry 10
percent more grain by weight and 15 percent more by volume than the
older Government of Canada cars
they are replacing; more than 2,900 are now in service. As a result
of this capacity upgrade, the amount of grain CP was able to
transport in each railcar increased by 1 metric tonne from a year
earlier.
"Today's announcement of CP's biggest-ever crop-year haul is a
bright spot for Canada's
agricultural sector," said the Honourable Marie-Claude Bibeau,
Canada's Minister of Agriculture
and Agri-Food. "I want to congratulate CP for reaching this
historic milestone, which would not have been possible without
their strategic investments into the future, including their
upgraded hopper car fleet. Our Government knows just how important
grain farmers are to Canada's food
supply and our economy, which is why we continue to open new
markets and make improvements to our rail transportation system.
While COVID-19 has affected many areas of the economy and many
individual farmers, today's announcement demonstrates how our
agriculture sector is well positioned to lead our nation's economic
restart."
As the 2020 crop continues to mature, CP is watching carefully
and assessing resource requirements in terms of personnel,
locomotives and railcars to meet the challenge. To find out more
about CP's preparations for the new crop year, click here.
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 for the
new crop year, the anticipated efficiency and capacity of the HEP
train model and associated facilities, the anticipated impacts on
capacity and efficiency of the HEP qualification of CP-served
train-loading facilities, anticipated timing of delivery of the
newest-generation railcars and anticipated investments in and
completion of HEP qualification of train loaders by third parties,
including the percentage of CP-serviced unit train loaders that
will be 8,500-foot HEP qualified by year-end.
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