Canadian Pacific and Unimin Corporation announce new long-term agreement for the movement of frac sand
March 15 2012 - 2:00PM
PR Newswire (Canada)
www.cpr.ca MINNEAPOLIS, MN, March 15, 2012 /CNW/ - Canadian Pacific
Railway Limited today announced a multi-year agreement with Unimin
Corporation of New Canaan, Connecticut, for the movement of frac
sand from Unimin's facility in Wisconsin. Unimin Corporation is
North America's leading producer of industrial minerals. The
facility, the Company's newest and most productive, will open in
2013 in Tunnel City, Wisconsin and will produce two million tons of
frac sand annually for energy markets in North Dakota, Texas,
Colorado and elsewhere. Under the agreement CP will become the
exclusive rail service provider at this facility for the movement
of frac sand to Unimin Corporation's destination markets. "We have
a long relationship with CP at many of our plants in North America
and we are delighted to expand this longstanding partnership," said
Kevin F. Crawford, President and Chief Executive Officer at Unimin.
"Rail is an effective way to move our products and CP is a reliable
partner that will enable us to continue to deliver products to
critical energy markets." "Canadian Pacific has been serving
Unimin, one of our largest Industrial Products customers, for more
than three decades and we are pleased to continue to grow this
partnership through service at its new facility," said Jane
O'Hagan, Canadian Pacific's Chief Marketing Officer and EVP
Marketing & Sales. "Canadian Pacific's scheduled railway will
ensure we efficiently manage their increasing volumes with reliable
service." "This agreement showcases the strength of CP's network
through Wisconsin with service to key energy regions throughout
North America. CP has proven performance in our ability to move
energy-related products and materials, such as frac sand, to
important oil and gas producing formations," said O'Hagan.
"Canadian Pacific has extended our energy franchise with ongoing
capital investments on our U.S. Midwest network and is moving
forward with our 2012 accelerated capital plan which includes
investments that support our energy growth strategy. We are pleased
to be in a position to provide the capacity to our customers to
respond to the strong growth in the energy-related markets."
Canadian Pacific is the only North American railroad to serve the
Bakken Formation, the Alberta Industrial Heartland, and the
Marcellus Shale. In addition, CP is the only Class I railway
to connect the energy hubs of the U.S. Midwest, Alberta and
Saskatchewan to the Northeast U.S. Through its network to the
Northeast U.S. and through the Kansas City gateway to the U.S. Gulf
Coast, CP is able to partner with the energy industry to facilitate
growth in moving oil and energy-related materials. Each year,
CP moves hundreds of thousands of carloads of energy-related
products, including crude oil, sulphur, fuels, diluents and
materials key to the energy industry, such as pipe and frac sand.
Note on Forward-Looking Information This news release contains
certain forward-looking statements relating but not limited to our
operations, anticipated financial performance and business
prospects. Undue reliance should not be placed on forward-looking
information as actual results may differ materially.
Forward-looking statements are not guarantees of future
performance. By its nature, CP'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,
credit 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;
inflation; changes in laws and regulations, including regulation of
rates; changes in taxes and tax rates; potential increases in
maintenance and operating costs; 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;
effects of changes in market conditions and discount rates on the
financial position of pension plans and investments, including
long-term floating rate notes; and various events that could
disrupt operations, including severe weather, droughts, floods,
avalanches and earthquakes as well as security threats and
governmental response to them, and technological changes. 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 "Management's Discussion and Analysis"
in CP's annual and interim reports, Annual Information Form and
Form 40-F. Except as required by law, CP undertakes no obligation
to update publicly or otherwise revise any forward-looking
information, whether as a result of new information, future events
or otherwise. About Canadian Pacific Canadian Pacific operates a
North American transcontinental railway providing freight
transportation services, logistics solutions and supply chain
expertise. Incorporating best-in-class technology and environmental
practices, CP is re-defining itself as a modern 21st century
transportation company built on safety, service reliability and
operational efficiency. Visit cpr.ca and see how Canadian Pacific
is Driving the Digital Railway. Canadian Pacific CONTACT: CP Media
Ed GreenbergTel.: 612-849-471724/7 Media Pager: 855-242-3674email:
Ed_greenberg@cpr.caCP Investment CommunityJanet WeissTel.:
403-319-3591email: investor@cpr.caUnimin MediaCraig JohnsonTel.:
203-966-8880email: Cjohnson@Unimin.com
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