Canadian Pacific announces new five year contract with Canadian Tire

CALGARY, Jan. 19, 2012 /PRNewswire/ - Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) announced today an agreement with Canadian Tire Corporation Limited (TSX: CTC.a) (TSX: CTC) which extends to early 2017 and awards the railway with the vast majority of Canadian Tire's domestic container traffic.

"We're delighted to renew our longstanding partnership with CP," said Pat Sinnott, Executive Vice-President, Supply Chain and Technology, Canadian Tire Corporation.  "We rely on rail extensively to get our goods to market.  Rail is the most efficient and sustainable way to move our products and CP is a trusted partner that will enable us to continue to deliver products reliably to over 1,700 Canadian Tire, Mark's and FGL Sports retail locations across the country."

"Our railway has been serving Canadian Tire, one of our largest intermodal customers, for more than eight decades and we will continue to execute on our solid operating plan to foster growth opportunities for both companies," said Jane O'Hagan, CMO and EVP Marketing & Sales, Canadian Pacific.

The agreement  builds on the shared successes the companies have had in efficiently servicing Canadian Tire's dealers and corporate stores. Recent rail network enhancements completed at CP, and the work already underway to further maximize efficiencies through a facility co-location strategy, will allow the companies to continue to develop and deliver supply chain solutions for Canadian Tire's growing retail business.

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.

About Canadian Pacific
Canadian Pacific (CP:TSX)(NYSE:CP) operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency. Visit cpr.ca and see how Canadian Pacific is Driving the Digital Railway.

SOURCE Canadian Pacific

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