CALGARY, May 8, 2014 /CNW/ - Canadian Pacific (TSX: CP) (NYSE: CP) Chief
Executive Officer E. Hunter Harrison said today direct face-to-face
discussions based on facts are the best way to make progress on
strengthening Canada's grain handling and transportation system.
"We need constructive dialogue instead of the ongoing back and forth
that is happening in the media among various parties," said Harrison.
"CP has reached out to customers and other stakeholders, including the
Western Grain Elevator Association, and look forward to further
constructive dialogue in person, rather than through the media. This
way, stakeholders like the WGEA, would have a better understanding of
supply chain realities and everything CP is doing to continue to move
record amounts of grain."
Harrison noted some CP Canadian grain highlights:
CP continues to meet or exceed the Government of Canada's
Order-in-Council, which directed railways to move about 5,500 cars per
week. This level of service was what CP committed to in its open letter
of March 6th, before the federal government order.
Versus a 5-year average, CP has moved 15 per cent more grain from
September through April.
CP grain volumes from September, 2013 through April, 2014 are up 10 per
cent compared to the same period last year.
From March to April, 2014, after the extreme weather lifted, volumes
were up 11 per cent compared to last year and 14 per cent over the 5
Added capacity from Winnipeg to Chicago this spring, which is supporting
the strong demand for Canadian grain into the United States.
Harrison also responded to suggestions grain should have moved to the
United States during the extreme winter weather periods. He noted
sending grain cars to a congested terminal like Chicago during this
past winter would have significantly impacted the supply chain's
ability to move grain to the benefit of Canadian farmers.
2013 was a record crop for the grain supply chain. Harrison said at
close to 80 million metric tonnes (MMT), this crop is 27 per cent above
the previous 2008/2009 record and 37 per cent above the 5-year average.
This amounts to an incremental 22 MMT of grain that needs to be moved
to an export position in addition to the 33 to 34 MMT that normally
"The reality is that Canada's grain handling system is just not built to
handle this record amount of grain and CP is moving all the grain the
supply chain can currently handle," said Harrison. "CP is moving grain
in all available lanes but we need to move grain to fluid outlets with
strong cycle times to move as much grain as possible as quickly as
Harrison added, "This is a capacity problem and the Canadian supply
chain needs to be searching for a capacity solution. Rail is only one
element of the supply chain."
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 a low-cost provider that is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit www.cpr.ca to see the rail advantages of Canadian Pacific.
SOURCE: Canadian Pacific
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