CALGARY, Aug. 21, 2017 /PRNewswire/ - Collaboration,
communication and coordination are front and centre as Canadian
Pacific (TSX: CP) (NYSE: CP) prepares to deliver best-in-class
service in the 2017-2018 crop year.
CP's service offering to grain customers is driven by maximizing
efficiency at the origin elevator and enhancing capabilities at the
export terminal, all driving velocity in the rail portion of the
complex grain supply chain.
"At CP, moving grain is embedded in our DNA and has been for
more than a century," said John
Brooks, CP Senior Vice-President and Chief Marketing
Officer. "While we have a long history of delivering for farmers,
shippers and the North American economy, we are more focused now
than ever on our relationships with our customers and on building
the world-class grain supply chain that will deliver for the next
century."
CP's Dedicated Train Program (DTP) will be more important than
ever in the 2017-18 crop-year, as more than 75 percent of CP's
grain service will use the innovative program. DTP provides
customers with greater clarity and control of car supply to manage
their supply chain. In the 2017-18 crop-year CP will look to
expand the DTP's power-on component, improving cycle times and
efficiency by ensuring locomotive power is available as soon as
loaded grain cars are ready to be moved.
"CP's Dedicated Train Program continues to add tremendous value
and create efficiencies for Viterra," said Kyle Jeworski, CEO of Viterra. "Working in close
collaboration with the CP sales and marketing team, we continue to
drive innovation, accountability and opportunity within the overall
grain supply chain."
Grain is CP's largest line of business. For the 2016-17
crop-year, CP's grain movements were consistent with the 2015-16
crop-year and 2 percent above our five-year average.
CP is driving towards a supply chain model capable of loading,
transporting, and unloading 8,500-foot long, power-on, unit trains
with a minimum of 134 hopper cars of export grain in Canada. Through infrastructure investment and
collaboration with grain companies and port operators, this
enhanced train model allows railways, elevators, and ports to
increase throughput and better utilize resources. Grain elevator
and port terminal infrastructure is being built and expanded to
load and unload 8,500-foot trains clear of the mainline track.
CP's investment in longer sidings and upgrades to its track
network enable these longer trains to move seamlessly between
elevators and ports. The 8,500-foot train model will carry a
minimum of 134 grain hopper cars based on industry-average car
lengths, 20 percent more grain than 112 car grain trains. As CP and
the industry move towards shorter, higher-capacity cars, CP will be
able to fit more cars and more grain on each 8,500-foot train. The
end result is more grain transported to market more efficiently
than ever before.
"Our dedicated sales and marketing team is working with our
customers to understand their needs and develop industry-leading
products and total transportation solutions that maximize supply
chain performance," Brooks said. "We are entering a phase of
sustainable growth where we are putting more dots on the map and
adding increased optionality for our customers – that's exciting
for us, for farmers, shippers and producers."
For less-than unit train customers, CP's Open Distribution is
segmented to better fulfill the shipping needs to these
end-markets. Customers who do not qualify for the DTP, or choose
not to sign up for the program, can order cars in the Open
Distribution program. Open Distribution allows shippers to input
orders for four weeks, and as orders are filled, new orders can be
placed.
CP has also launched an updated grain website at
www.cpr.ca/grain and will continue to publish its weekly supply
chain scorecard. These efforts are all part of on-going proactive
outreach highlighting CP's commitment to accountability and
transparency as it relates to the grain supply chain.
Forward Looking Statement
This news release contains
certain forward-looking information within the meaning of
applicable securities laws relating, but not limited, to the
implementation and results of CP's sales and marketing initiatives,
operations, priorities and plans, anticipated performance, business
prospects, programs and strategies. 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: 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
"Risk Factors" and "Management's Discussion and Analysis of
Financial Condition and Results of Operations - Forward-Looking
Information" in CP's annual and interim reports on Form 10-K and
10-Q.
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 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 CP.
CP-IR
SOURCE Canadian Pacific