CALGARY, AB, Aug. 3, 2021 /PRNewswire/ - Canadian Pacific
(TSX: CP) (NYSE: CP) today announced it hauled more Canadian grain
and grain products in the 2020–2021 crop production year than any
other crop year during CP's 140-year history. Working in close
collaboration with customers and other participants in the Canadian
grain supply chain, CP moved 30.62 million metric tonnes (MMT) this
crop year, exceeding last year's record of 29.52 MMT by 1.10 MMT,
or 3.7 percent. This is the fourth consecutive year that CP has
broken its annual movement record. Including grain moved in
containers, CP moved a total of 31.21 MMT, up 3.4 percent from last
crop year.
"CP's team of exceptional railroaders, dedicated to providing
our customers with service excellence, and the strong execution by
our customers and terminal operators, has enabled the supply chain
to move more grain than ever before," said Joan Hardy, CP Vice-President Sales and
Marketing, Grain and Fertilizers. "The challenge created by the
COVID-19 pandemic over the past 17 months has underpinned the value
of strong communication and supply chain collaboration. Despite a
sharp reduction in demand this spring, CP and our customers have
again broken our movement record, and we celebrate that achievement
across the supply chain."
CP's 2020–2021 grain movement was 15 percent ahead
year-over-year through the critical fall peak, providing the grain
customers excellent service at the time when it is most important
to their supply chains. This continued through the winter months.
At the end of March, CP had moved 14 percent more this crop year
compared to the record movement last crop year. However, because of
market conditions and a tight supply of grain, demand started to
fall off in April. Through May, June and July shipper demand was
almost 15 percent below the same period last year, and 25 percent
below the fall peak demand levels.
This year's successes are a testament to the efficiency of the
8,500-foot High Efficiency Product (HEP) train model and
investments made by CP's customers. An 8,500-foot HEP train can
carry in excess of 40 percent more grain than the 7,000-foot train
model when combined with the additional capacity of CP's new
high-efficiency hopper cars. Customers are actively investing in
their elevator networks to accommodate 8,500-foot trains. Today CP
serves 25 elevators qualified to load 8,500-foot HEP trains, 13 of
which became qualified during the 2020–2021 crop year. By the end
of 2021, more than 40 percent of the CP-served unit train loaders
will be 8,500-foot HEP qualified, increasing capacity and
efficiency in the grain supply chain for customers and
stakeholders.
"What a tremendous accomplishment for CP and I want to
congratulate everyone involved in achieving this major milestone.
Investments like these help position Canada as a world leader in innovation and
demonstrates CP's commitment to ensure the safe, efficient
transportation of grains, while providing opportunities throughout
the entire value chain. The grain sector is a powerful driver for
the Canadian economy, and Canadian farmers are known around the
world as efficient and reliable suppliers of high quality
products."
- The Honourable Marie-Claude Bibeau, Minister of Agriculture
and Agri-Food
CP continues to take delivery of high-capacity grain hopper cars
as part of a half-billion-dollar commitment in 2018 to purchase
5,900 of the newest-generation railcars. The new cars can carry 10
percent more grain by weight and 15 percent more by volume than the
older Government of Canada cars
they are replacing. Today, CP has more than 4,600 owned and leased
new high-capacity hopper cars in active service, with plans to add
1,600 more by the end of 2021. This capacity upgrade has increased
the amount of grain CP was able to transport in each railcar by
more than 1 metric tonne from a year earlier, and by almost 3
metric tonnes since the start of the fleet renewal program in
2018.
"CP's record performance and focus on innovation is driving the
future of grain transportation for the benefit of the entire supply
chain and Canadians from coast to coast to coast. As the federal
minister of transport, I welcome the submission of the 2020−2021
Grain Service Outlook Report. May we continue to work together to
achieve great things."
- The Honourable Omar Alghabra, Minister of Transport
On July 31, CP submitted its
2021–2022 Grain Service Outlook Report to the Honourable Omar
Alghabra, Canadian Minister of Transport, outlining CP's ability to
move grain during the upcoming 2021–2022 crop year, taking into
account the total volume of grain expected to be moved. To find out
more about CP's preparations for the new crop year, click
here.
Note on 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. 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 "will", "anticipate",
"believe", "expect", "plan", "should" or similar words suggesting
future outcomes.
This news release contains forward-looking information relating,
but not limited to, our operations, priorities and plans for the
new crop year, the anticipated efficiency and capacity of the HEP
train model and associated facilities, the anticipated impacts on
capacity and efficiency of the HEP qualification of CP-served
train-loading facilities, anticipated timing of delivery of the
newest-generation railcars and anticipated investments in and
completion of HEP qualification of train loaders by third parties,
including the percentage of CP-serviced unit train loaders that
will be 8,500-foot HEP qualified by year-end.
The forward-looking information contained in this news release
is based on current expectations, estimates, projections and
assumptions, having regard to CP's experience and its perception of
historical trends, and includes, but is not limited to,
expectations, estimates, projections and assumptions relating to:
North American and global economic growth; commodity demand growth;
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;
our ability to complete our capital and maintenance projects on the
timelines anticipated; applicable laws, regulations and government
policies; the availability and cost of labour, services and
infrastructure; the satisfaction by third parties of their
obligations to CP; the anticipated impacts of the novel strain of
coronavirus (and the disease known as COVID-19); and capital
investments by third parties. Although CP 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,
CP'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; general
North American and global economic, 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; 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,
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; 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; trade restrictions or other changes to
international trade arrangements; climate change; 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; and the pandemic created by the
outbreak of the novel strain of coronavirus (and the disease known
as COVID-19) 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
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 "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.
The forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CP
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 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