CALGARY,
AB and WINNIPEG, MB,
June 26,
2023 /CNW/ - Richardson International Limited
(Richardson) and Canadian Pacific
Kansas City (TSX: CP) (NYSE: CP) (CPKC) announced today that
Richardson plans to expand eight
CPKC-served elevators in western Canada, allowing future trains to be moved
from these sites under CPKC's 8,500-foot High Efficiency Product
(HEP) model. Work on the elevators in Manitoba, Saskatchewan and Alberta will start in the summer of 2023 and
be complete by the end of 2024.
"Richardson is committed to
Canadian farmers and providing growers with modern, high-efficiency
facilities and services," said Darwin
Sobkow, Richardson's
President and Chief Operations Officer. "Expanding eight elevators
will increase capacity and efficiency, enabling Richardson to further benefit from CPKC's
single-line network reaching Canada, the U.S. and Mexico. We have strongly supported the CP-KCS
combination throughout the process and look forward to working with
CPKC on additional future opportunities for shared growth."
Richardson currently ships unit
trains from 27 CPKC-served elevators in Canada and 1 in the northern U.S. The newest
Richardson elevator at
Carmichael, Sask., a greenfield
grain elevator commissioned in early 2023, is their first
8,500-foot HEP site.
"CPKC is thrilled to have these Richardson elevators added to the growing list
of already qualified 8,500-foot HEP sites across western
Canada," said John Brooks, CPKC's Executive Vice-President and
Chief Marketing Officer. "Richardson's supply chain and CPKC's operation
will benefit from added efficiency, capacity and fluidity with this
investment. Richardson's ability
to run longer trains will mean more grain shipped per train,
tighter cycles and more Richardson
trains moving across our expanded, single-line network throughout
the season."
In 2021, Richardson acquired
Italgrani USA Inc., including the
largest North American durum mill located in St. Louis, Mo. The CPKC single-line network
creates a seamless pipeline to the Italgrani mill from the
durum-rich areas in Saskatchewan,
where Richardson elevators are
well positioned. Furthermore, the combined network and markets in
the southern U.S. and Mexico are
opening new doors to Richardson
for their grains, oilseeds and processed products.
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 in
both the U.S. and Canada.
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 "financial expectations", "key assumptions",
"will", "anticipate", "believe", "expect", "plan", "should",
"commit", "outlook", "guidance" or similar words suggesting future
outcomes.
This news release contains forward-looking information relating,
but not limited, to, Richardson's
plans to expand elevators on the CPKC network, the anticipated
impacts of the planned elevator expansion on capacity and
efficiency, the projected date of completion of the elevator
expansion, and other related matters associated with providing an
expanded, single-line network.
The forward-looking information contained in this news release
is based on current expectations, estimates, projections and
assumptions, having regard to CPKC's experience and its perception
of historical trends, and includes, but is not limited to,
expectations, estimates, projections and assumptions relating to:
changes in business strategies; the fuel efficiency of railways and
CPKC's operations; the impacts of existing and planned capital
investments; North American and global economic growth; commodity
demand growth; sustainable industrial and 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; geopolitical conditions; applicable
laws, regulations and government policies; the availability and
cost of labour services and infrastructure; the satisfaction by
third parties of their obligations to CPKC; carbon markets,
evolving sustainability strategies, and scientific or technological
developments; and capital investments by third parties. Although
CPKC 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,
CPKC'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 and
strategic opportunities; general Canadian, U.S., Mexican and global
social, economic, political, 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,
including competition from other rail carriers, trucking companies
and maritime shippers in Canada,
the U.S. and Mexico; North
American and global economic growth and conditions; industry
capacity; shifts in market demand; changes in commodity prices and
commodity demand; uncertainty surrounding timing and volumes of
commodities being shipped via CPKC; inflation; geopolitical
instability; 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; disruption in fuel supplies; uncertainties of
investigations, proceedings or other types of claims and
litigation; compliance with environmental regulations; labour
disputes; changes in labour costs and labour difficulties; risks
and liabilities arising from derailments; transportation of
dangerous goods; timing of completion of capital and maintenance
projects; sufficiency of budgeted capital expenditures in carrying
out business plans; services and infrastructure; the satisfaction
by third parties of their obligations; currency and interest rate
fluctuations; exchange rates; effects of changes in market
conditions and discount rates on the financial position of pension
plans and investments; trade restrictions or other changes to
international trade arrangements; the effects of current and future
multinational trade agreements on the level of trade among
Canada, the U.S. and Mexico; climate change and the market and
regulatory responses to climate change; anticipated in-service
dates; success of hedging activities; operational performance and
reliability; customer and other stakeholder approvals and support;
regulatory and legislative decisions and actions; the adverse
impact of any termination or revocation by the Mexican government
of Kansas City Southern de México, S.A. de C.V.'s Concession;
public opinion; 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; acts
of terrorism, war or other acts of violence or crime or risk of
such activities; insurance coverage limitations; material adverse
changes in economic and industry conditions, including the
availability of short and long-term financing; the pandemic created
by the outbreak of COVID-19 and its variants 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 realization of anticipated
benefits and synergies of the CP-KCS transaction and the timing
thereof; the satisfaction of the conditions imposed by the U.S.
Surface Transportation Board in its March
15, 2023 decision; the success of integration plans for KCS;
the focus of management time and attention on the CP-KCS
transaction and other disruptions arising from the CP-KCS
integration; estimated future dividends; financial strength and
flexibility; debt and equity market conditions, including the
ability to access capital markets on favourable terms or at all;
cost of debt and equity capital; improvement in data collection and
measuring systems; industry-driven changes to methodologies; and
the ability of the management of CPKC to execute key priorities,
including those in connection with the CP-KCS transaction. The
foregoing list of factors is not exhaustive. These and other
factors are detailed from time to time in reports filed by CPKC
with securities regulators in Canada and the
United States. Reference should be made to "Item 1A - Risk
Factors" and "Item 7 - Management's Discussion and Analysis of
Financial Condition and Results of Operations - Forward-Looking
Statements" in CPKC's annual and interim reports on Form 10-K and
10-Q.
Any forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CPKC
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 Richardson
International
Richardson International Limited is Canada's largest
agribusiness and is recognized as a global leader in agriculture
and food processing. Based in Winnipeg, Manitoba, the company is a worldwide handler
and merchandiser of all major Canadian-grown grains and oilseeds
and a vertically-integrated processor and manufacturer of oats and
canola-based products. Over the past two
decades, Richardson has become a significant player in
the global food business, producing a wide variety of food products
and ingredients for the retail, food service, and industrial
markets. One of Canada's Best Managed
Companies, Richardson continues to grow, thanks to the
dedication and innovative spirit of over 3,000 employees
worldwide.
About CPKC
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line
transnational railway linking Canada, the United
States and México, with unrivaled access to major ports from
Vancouver to Atlantic Canada to the Gulf of México to
Lázaro Cárdenas, México. Stretching approximately 20,000 route
miles and employing 20,000 railroaders, CPKC provides North
American customers unparalleled rail service and network reach to
key markets across the continent. CPKC is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpkcr.com to
learn more about the rail advantages of CPKC. CP-IR
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SOURCE CPKC