CALGARY and PHOENIX, April 25,
2023 /PRNewswire/ - Canadian Pacific Kansas City
(TSX: CP) (NYSE: CP) (CPKC) and Knight-Swift Transportation
Holdings Inc. (NYSE: KNX) announced today a new multi-year
agreement to provide truckload intermodal transportation service on
CPKC's new single-line north-south corridor connecting Mexico, the United
States and Canada.
Knight-Swift is one of North
America's largest and most diversified freight
transportation companies, providing multiple truckload
transportation and logistics services.
"This agreement creates compelling new transportation solutions
for Knight-Swift's current and future customers looking for
optionality and increased capacity in their supply chains," said
John Brooks, CPKC Executive
Vice-President and Chief Marketing Officer. "As Knight-Swift
transition their Mexico-U.S. traffic to CPKC starting in mid-May,
we will focus on growth between Chicago, Texas and Mexico markets."
Knight-Swift's established Mexico customer base will be able to leverage
CPKC's broad network of rail lines, terminals, and cross-border
efficiency and expertise to improve service reliability and
competitiveness.
"Our agreement with the CPKC will provide another differentiated
solution for our customers and their over-arching supply chains,"
said Adam Miller, Knight-Swift
Transportation CFO and Swift President. "The Knight-Swift team is
looking forward to engaging with the CPKC railroad on service
offerings, customer solution design and demand planning to help
facilitate growth on the first single-line railroad connecting
Mexico, the United States, and Canada. Our Transmex team and growing LTL
offering will also benefit from the newly created railroad and will
allow us to continue supporting our customers in new and different
ways by providing thoughtful solutions with a solid underlying
service product."
CPKC's International Railroad Bridge over the Rio Grande River
at the U.S.-Mexico border at
Laredo, Texas, offers a reliable
alternative to congested highway ports of entry. A second span to
expand the bridge's capacity and further increase the efficiency of
cross-border train movements is currently under construction and
expected to be completed by the end of 2024.
Anticipated environmental benefits of CPKC include the avoidance
of more than 1.6 million tons of greenhouse gas (GHG) emissions due
to the expected improved operational efficiency of CPKC versus
current operations and another 300,000 tons of GHG emissions with
the diversion of 64,000 trucks to rail for a total reduction of 1.9
million tons of GHG emissions over the next five years. Diverting
64,000 long-haul truck shipments to rail annually with new CPKC
intermodal services will reduce total truck vehicle miles travelled
by almost 2 billion miles over the next two decades, saving
US$750 million in highway maintenance
costs.
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 "financial expectations", "key
assumptions", "will", "anticipate", "believe", "expect", "plan",
"should", "commit" or similar words suggesting future outcomes.
This news release contains forward-looking information relating,
but not limited, to, truckload intermodal transportation services
of Knight-Swift Transportation Holdings Inc. ("Knight-Swift"), the
future growth of the business with Knight-Swift., and related
matters associated with the multi-year agreement between
Knight-Swift, and the anticipated environmental benefits of the
CP-KCS transaction.
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 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
About Knight-Swift
Knight-Swift Transportation
Holdings Inc. is one of North
America's largest and most diversified freight
transportation companies, providing multiple truckload
transportation and logistics services, as well as LTL services
through ACT. Knight-Swift uses a nationwide network of business
units and terminals in the United
States and Mexico to serve
customers throughout North
America. In addition to operating the country's largest
tractor fleet, Knight-Swift also contracts with third-party
equipment providers to provide a broad range of truckload services
to our customers while creating quality driving jobs for our
driving associates and successful business opportunities for
independent contractors.
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SOURCE CPKC