CALGARY, Jan. 23, 2012 /CNW/ - Canadian Pacific Railway Limited (TSX:
CP) (NYSE: CP) announced today a 10-year agreement with Canpotex
Limited. Under the agreement, CP will be Canpotex's principal Canadian
railway, transporting a large majority of potash shipments to
Canpotex's main terminal in Vancouver, British Columbia. In addition,
in conjunction with Union Pacific, CP will transport all Canpotex
potash shipments to Portland, Oregon.
To move Canpotex's potash more efficiently and reliably, CP has enhanced
the infrastructure of its north main line and western corridor, which
handle potash service originating from 10 Saskatchewan mines.
Improvements made under CP's Multi-Year Plan are reducing average route
miles and improving the capacity and responsiveness of the CP network.
CP's infrastructure enhancements are part of its four-year capital
investment program, approved by the Board of Directors in the fall of
"Selection of CP to move the majority of our product to port is a
reflection of the strength of our partnership and CP's ongoing
commitment to efficiency in the supply chain and in helping to realize
our growth objectives," said Steve Dechka, Canpotex's President and
"By upgrading our network, and through the ongoing implementation of our
long train strategy, CP is continuing to strengthen our world class
potash supply chain," said CP's President and CEO Fred Green. "We are
now running potash trains up to 170 railcars in length, further
improving service, capacity and efficiency."
"CP is pleased to provide the resource and infrastructure commitments
necessary to support Canpotex's continued growth," added Mr. Green. "To
better serve key customers like Canpotex, CP recently announced a $1.1
billion to $1.2 billion capital program for 2012 that includes the
second phase of our $250 million north main line project. These
value-enhancing investments position Canadian Pacific for long-term
growth with strategic customers."
The 10-year agreement between CP and Canpotex commences July 1, 2012.
Terms and conditions of the agreement are confidential. The agreement
improves unit revenues for CP, including a fully responsive fuel
mechanism, to support investments for continued excellence in service
execution and capacity for further growth. The agreement also reflects
increased efficiencies and cycle time benefits realized from the fewer
miles to port and a new "hook and haul" arrangement.
Note on forward-looking information
This news release contains certain forward-looking statements relating
but not limited to our operations, anticipated financial performance
and business prospects. Undue reliance should not be placed on
forward-looking information as actual results may differ materially.
By its nature, CP's forward-looking information involves numerous
assumptions, inherent risks and uncertainties, including but not
limited to the following factors: 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; 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,
including long-term floating rate notes; 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. Other risks 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.
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) operates a North American
transcontinental railway providing freight transportation services,
logistics solutions and supply chain expertise. Incorporating
best-in-class technology and environmental practices, CP is re-defining
itself as a modern 21st century transportation company built on safety,
service reliability and operational efficiency. Visit cpr.ca and see how Canadian Pacific is Driving the Digital Railway.
SOURCE Canadian Pacific
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