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
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
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
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