Consistent with Multi-Year Plan, Enhanced Locomotive Reliability Centres Increase Efficiencies
CALGARY, Jan. 18, 2012 /CNW/ - Canadian Pacific (TSX:CP)(NYSE:CP) today announced the completion of the capital investments made to enhance the Locomotive Reliability Centre (LRC) in Toronto..
This now completes the second phase of CP's Locomotive Reliability Centre strategy which will reduce the number of locomotive repair facilities from eight to four highly efficient super shops with improved repair capabilities.
The Toronto LRC joins similar centres in Calgary, Winnipeg and St. Paul, Minnesota. Once all three phases of the strategy are complete CP will perform most of its scheduled and unscheduled locomotive repairs in these facilities.
"The upgraded, consolidated facilities coupled with the introduction of a lean continuous improvement approach, allows for standardized processes and practices and enables improvements in locomotive availability and reliability," said Mike Franczak, Executive Vice-President, Operations. "These locomotive repair centres operate 7/24 and are capable of doing all needed work for all locomotive types." "Additional benefits include reduced transit times to shops, quicker shop turn times and better quality repairs that drive a more consistent product to CP's customers at a lower cost to the railroad," Franczak added.
LRCs are comprehensive facilities that perform all locomotive maintenance including: traction motors, wheels and heavy repairs such as engine and turbo change outs. The four LRCs are geographically aligned with CP's major transportation hubs, ensuring steady supply of highly reliable locomotives for freight operations.
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.
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