CALGARY, Aug. 11, 2015 /CNW/ - Canadian Pacific is well
positioned to provide best-in-class service to western Canadian
grain shippers during the 2015-2016 crop-year.
CP's service offering to grain customers is driven by efficiency
and creating velocity in the rail portion of the complex grain
supply chain. CP's Dedicated Train Program (DTP), which was
introduced last-crop year, provides customers with greater clarity
and control of car supply to manage their supply chain. CP
anticipates adding more trains to the program this crop year as it
responds to greater demand to move grain and grain products from
western Canada. In the 2014-2015
crop year, CP moved a record 276,154 carloads (27,849,434 MT) of
Canadian grain and grain products from western Canadian origins, up
from the previous record crop year of 2013-2014.
"CP is moving record amounts of grain from western Canada and approximately 70 percent of our
grain operation is served by the DTP. The customer feedback
has been overwhelmingly positive," said John Brooks, CP's Vice-President Sales and
Marketing, Bulk. "The DTP is based on the fact that the unit train
shippers know their business the best - allowing them to determine
origin, destination and to manage the velocity of their supply
chain."
CP continues to invest in its network to improve efficiency,
create velocity and provide the best service possible to customers.
In 2015, CP will spend 21 percent of its revenue on capital
expenditures, more than any other Class 1 railroad. Canadian rail
rates remain among the lowest in the world, having risen just 6
percent since 2000 even as commodity prices have soared by 166
percent.
For less than unit train customers, CP's Open Distribution is
segmented to better fulfill the shipping needs to these
end-markets. Customers who do not qualify for the DTP, or
choose not to sign up for the program, can order cars in the Open
Distribution program. Open Distribution allows shippers to input
orders for four weeks, and as orders are filled, new orders can be
placed.
"We continue to offer valuable and efficient service to our less
than unit train customers via Open Distribution," said Brooks.
"This service is informed by on-going and collaborative discussions
with shippers and coordination through the Canadian Grain
Commission for producer car loaders. We are constantly working to
recognize and meet the differing needs of all the customers we
serve."
These collaborative programs give flexible options to our
customers both large and small.
"CP's Dedicated Train Program has created efficiencies for
Viterra while allowing greater flexibility of train placement to
ensure the right grain is moving to export position," said
Kyle Jeworski, Viterra's Chief
Executive Officer. "The program is a positive step forward in the
movement of Canadian grains, and we look forward to continuing to
work with CP to support our overall focus on driving supply chain
excellence for our farmers and destination customers."
CP has stressed and will continue to stress that the complex
Canadian grain supply chain must operate on a 24/7 basis to support
balanced pipelines, reduce congestion and drive velocity.
Note on forward-looking information
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited, to our operations, priorities and plans, anticipated
financial performance, business prospects, planned capital
expenditures, programs and strategies. This forward-looking
information also 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 "financial expectations", "key assumptions",
"anticipate", "believe", "expect", "plan", "will", "outlook",
"should" or similar words suggesting future outcomes. To the extent
that CP has provided guidance using non-GAAP financial measures,
the Company may not be able to provide a reconciliation to a GAAP
measure, due to unknown variables and uncertainty related to future
results.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from the
forward-looking information. Forward-looking information is not a
guarantee of future performance. By its nature, CP's
forward-looking information involves numerous assumptions, 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 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; changes in
commodity prices; uncertainty surrounding timing and volumes of
commodities being shipped via CP; 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; 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. 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
"Management's Discussion and Analysis" in CP's annual and interim
reports, Annual Information Form and Form 40-F. Readers are
cautioned not to place undue reliance on forward-looking
information. Forward-looking information is based on current
expectations, estimates and projections and it is possible that
predictions, forecasts, projections, and other forms of
forward-looking information will not be achieved by CP. 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 (TSX:CP)(NYSE:CP) is a transcontinental railway in
Canada and the United States with direct links to eight
major ports, including Vancouver
and Montreal, providing 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 Canadian Pacific.
SOURCE Canadian Pacific