CALGARY,
AB, July 20, 2022 /PRNewswire/ - Canadian
Pacific Railway Limited (TSX: CP) (NYSE: CP) ("CP") today applauded
the announcement by Kansas City Southern ("KCS") and its affiliate
Kansas City Southern de México, S.A. de C.V. ("KCSM") of an
agreement extending the concession exclusivity rights granted
to KCSM for an additional 10 years.
KCSM reached an agreement with the Mexican Ministry of
Infrastructure, Communications and Transportation ("SICT") to fund
a new investment in the Celaya-NBA Line Railway Bypass and other
infrastructure.
As part of the agreement, the SICT has authorized the amendment
of KCSM's Concession Title effective July
14, 2022, to extend the exclusivity rights granted to KCSM
for an additional period of 10 years.
Under this amendment, KCSM's exclusivity will now expire in
2037.
CP completed its acquisition of KCS on Dec. 14,
2021. Immediately upon the closing of the acquisition, the
shares of KCS were placed into a voting trust which ensures KCS
will operate independently of CP while the U.S. Surface
Transportation Board ("STB") completes its regulatory review of the
companies' joint railroad control application to create Canadian
Pacific Kansas City ("CPKC"), the only single-line railroad linking
the United States, Mexico and Canada.
FORWARD LOOKING STATEMENTS AND
INFORMATION
This news release contains certain forward looking statements
and forward looking information (collectively, "FLI") to provide CP
shareholders and potential investors with information about CP, KCS
and their respective subsidiaries and affiliates, which FLI may not
be appropriate for other purposes.
FLI is typically identified by words such as "anticipate",
"expect", "project", "estimate", "forecast", "plan", "intend",
"will", "target", "believe", "likely" and similar words suggesting
future outcomes or statements regarding an outlook. All statements
other than statements of historical fact may be FLI.
Although we believe that the FLI is reasonable based on the
information available today and processes used to prepare it, such
statements are not guarantees of future performance and you are
cautioned against placing undue reliance on FLI. By its nature, FLI
involves a variety of assumptions, which are based upon factors
that may be difficult to predict and that may involve known and
unknown risks and uncertainties and other factors which may cause
actual results, levels of activity and achievements to differ
materially from those expressed or implied by these FLI, including,
but not limited to, the following: the realization of anticipated
benefits and synergies of the CP-KCS transaction and the timing
thereof; the success of integration plans; the focus of management
time and attention on the CP-KCS transaction and other disruptions
arising from the CP-KCS transaction; changes in business strategy
and strategic opportunities; 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; the ability of
management of CP, its subsidiaries and affiliates to execute key
priorities, including those in connection with the CP-KCS
transaction; 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; industry capacity; shifts in
market demand; changes in commodity prices and commodity demand;
uncertainty surrounding timing and volumes of commodities being
shipped; 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;
ability to achieve commitments and aspirations relating to reducing
greenhouse gas emissions and other climate-related objectives;
anticipated in-service dates; success of hedging activities;
operational performance and reliability; customer, regulatory 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
Mexico, S.A. de C.V.'s Concession;
public opinion; various events that could disrupt operations,
including severe weather events, 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; and 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.
We caution that the foregoing list of factors is not exhaustive
and is made as of the date hereof. Additional information about
these and other assumptions, risks and uncertainties can be found
in reports and filings by CP with Canadian and U.S. securities
regulators, including any prospectus, material change report,
management information circular or registration statement that have
been or will be filed in connection with the transaction. 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. Due to the interdependencies and correlation of these
factors, as well as other factors, the impact of any one
assumption, risk or uncertainty on FLI cannot be determined with
certainty.
Except to the extent required by law, we assume no obligation to
publicly update or revise any FLI, whether as a result of new
information, future events or otherwise. All FLI in this news
release is expressly qualified in its entirety by these cautionary
statements.
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