CALGARY, Sept. 18, 2015 /CNW/ - Canadian Pacific Railway
Limited (TSX:CP)(NYSE:CP) today completed the sale to Norfolk
Southern Corp. (NS) of more than 280 miles of track from
Schenectady, N.Y., to Sunbury, Pa.
The US$214.5 million sale (subject
to adjustments) of the Delaware
& Hudson South (D&H) was
first announced November 14, 2014 and
approved by the U.S. Surface Transportation Board on May 15, 2015.
"We are pleased to have completed this transaction in
partnership with Norfolk Southern," said Keith Creel, CP President and Chief Operating
Officer. "The sale allows CP to create value for our shareholders
while better aligning the route with the railroad that already
moves the majority of traffic over it."
The D&H South sale includes all branch lines and industrial
spurs that connect to the Sunbury-Schenectady main line, plus some equipment,
vehicles and parts. CP will formally cease rail operations on the
corridor this evening.
Approximately 45,000 CP carloads and shipping containers move
across the line annually, including consumer goods, salt, grain and
forest products.
In the past, CP has run its Holiday Train over the D&H South
but due to the completion of this transaction, will no longer visit
communities in this corridor. However, this year CP will make one
final donation to the food shelves it has previously supported in
the area.
Forward Looking Statement
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited, to the anticipated benefits of the transaction. 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.
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: the ability to recognize the
benefits of the transaction; 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