Canadian Pacific welcomes STB approval



    CALGARY, Sept. 30 /CNW/ - Canadian Pacific Railway Limited (TSX/NYSE:   CP)
announced today that it has received regulatory approval from the US Surface
Transportation Board (STB) to acquire control of the Dakota, Minnesota &
Eastern Railroad Corporation and its subsidiaries: Iowa, Chicago & Eastern
Railroad and Cedar American Rail Holdings. The STB denied all requests for
conditions other than those agreed to voluntarily by CP. The official
effective date of the final decision is October 30, 2008.
    "The DM&E is an excellent fit for Canadian Pacific making this a
strategic end-to-end addition to our network," said Fred Green, President and
Chief Executive Officer of CP. "This is also a positive development for CP,
DM&E and IC&E customers. CP customers will have direct single line access to
the Midwest US markets and the Kansas City gateway, which will improve
fluidity to and from the Southwest US and Mexico. DM&E and IC&E customers will
have access to single line haul opportunities to new markets and access to
CP's car fleets."
    CP's ability to provide single line service between DM&E and IC&E served
origins and CP destinations will enhance rail service, while its commitment to
make infrastructure investments across the DM&E and IC&E network will improve
safety and fluidity.
    "Together, we will build on the significant improvements the DM&E has
made in operating efficiency and safety over the past several years and remain
committed to our shareholders, our employees, our customers and the
communities we serve," said Kathryn McQuade, CP's Executive Vice President and
CFO.
    The DM&E is the largest regional railroad in the U.S. and the only Class
II railroad that connects and interchanges traffic with all seven Class I
railroads, connecting with Canadian Pacific at Minneapolis, Winona, MN and
Chicago. The DM&E is expected to deliver double digit top-line revenue growth
and EBITDA in 2008. It is headquartered in Sioux Falls, SD and has
approximately 1,100 employees, 2,500 miles of track, including approximately
500 miles of trackage rights, and rolling stock that includes 7,200 rail cars
and 150 locomotives. The DM&E serves eight states: Illinois, Iowa, Minnesota,
Missouri, Nebraska, South Dakota, Wisconsin and Wyoming with access to
Chicago, Minneapolis/St. Paul, Kansas City and key ports.
    "While this is a day to celebrate, it is also very important that the
qualities that have made the DM&E, IC&E and Cedar American so successful stay
as vibrant as they were before the acquisition," added Green. "I look forward
to building and strengthening our company, together."

    Note on forward-looking information

    This news release contains certain forward-looking statements relating
but not limited to the proposed acquisition transaction, 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, Canadian Pacific'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 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 laws
and regulations, including regulation of rates; changes in taxes and tax
rates; potential increases in maintenance and operating costs; uncertainties
of litigation; labour disputes; risks and liabilities arising from
derailments; timing of completion of capital and maintenance projects;
currency and interest rate fluctuations; effects of changes in market
conditions on the financial position of pension plans and investments, and
various events that could disrupt operations, including severe weather
conditions, security threats and governmental response to them, and
technological changes.
    There are factors that could cause actual results to differ from those
described in the forward-looking statements contained in this news release.
These more specific factors are identified and discussed in the Outlook
section and elsewhere in this news release with the particular forward-looking
statement in question.
    Except as required by law, Canadian Pacific 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, through the ingenuity of its employees located across
Canada and in the United States, remains committed to being the safest, most
fluid railway in North America. Our people are the key to delivering
innovative transportation solutions to our customers and to ensuring the safe
operation of our trains through the more than 900 communities where we
operate. Come and visit us at www.cpr.ca to see how we can put our ingenuity
to work for you. Canadian Pacific is proud to be the official rail freight
services provider for the Vancouver 2010 Olympic and Paralympic Winter Games.





For further information:

For further information: Media, Leslie Pidcock, Tel.: (403) 319-6878,
e-mail: leslie_pidcock@cpr.ca; Investment Community, Janet Weiss, Assistant
Vice-President Investor Relations, Tel.: (403) 319-3591, e-mail:
investor@cpr.ca


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