CP reports new record January for Canadian grain transport

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Feb 02, 2023, 09:00 ET

CALGARY, AB, Feb. 2, 2023 /PRNewswire/ - Canadian Pacific (TSX: CP) (NYSE: CP) moved 2.29 million metric tonnes (MMT) of Canadian grain and grain products in January 2023, setting a new record for the month. CP has moved more than 15 MMT of Canadian grain and grain products thus far in the 2022-2023 crop year, exceeding the amount shipped by this time in the 2021-2022 crop year by more than 45 percent.

"CP's grain performance through January demonstrates the strength of our customers' supply chains, and the strong resiliency of our railway operations and effective winter planning, allowing CP to deliver for our customers," said Joan Hardy, CP Vice-President Sales and Marketing, Grain and Fertilizers. "CP, our customers and other supply chain participants were able to ship nearly double the volume of grain and grain products compared to January 2022, despite slowed grain vessel loading because of rain in Vancouver, holiday closures and periods of extreme winter operating conditions."

"CP is dedicated to grain; we have invested more than $500 million in new high-capacity hopper cars, and we are working with our customers to boost supply chain capacity," added Hardy. "We are pleased to see a strong crop for Canadian farmers and the Canadian economy."

CP has called on the government and industry to improve the ability to load grain vessels in the rain at west coast terminals. This problem in Vancouver is causing significant capacity constraints for Canada's export of grain and agricultural products. Persistent rain delays in Vancouver disrupt the efficient, balanced cycling of rail cars from the Port of Vancouver back to the in-country grain elevators on the Prairies, where they are re-loaded with grain and transported back to the West Coast. These delays unavoidably reduce the grain supply chain's velocity and export capacity.

"CP appreciates the attention of both government and industry to this matter, and looks forward to stakeholders finding pragmatic and safe solutions to maximize throughput for Canada's export grain supply chain," said Hardy.

CP voluntarily publishes a weekly Canadian grain and grain product supply chain scorecard. The scorecard outlines CP's performance for the previous grain week and includes detailed information on any internal or external factors affecting grain movement. More information is available on CP's website.

Effective crop year and winter planning helps prepare CP to serve the needs of its customers, and by extension, the broader economy. CP has outlined its grain service outlook and its winter contingency measures in plans available on cpr.ca.

Note on forward-looking information

This news release contains certain forward-looking information and forward-looking statements (collectively, "forward-looking information") within the meaning of applicable securities laws. Forward-looking information 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 "will", "anticipate", "believe", "expect", "plan", "should" or similar words suggesting future outcomes.

This news release contains forward-looking information relating, but not limited to, our operations, priorities and plans, anticipated growth in our high-capacity hopper car fleet, and capital expenditures, shipment capacity and completion.

The forward-looking information contained in this news release is based on current expectations, estimates, projections and assumptions, having regard to CP's experience and its perception of historical trends, and includes, but is not limited to, expectations, estimates, projections and assumptions relating to: North American and global economic growth; commodity demand growth; agricultural production; commodity prices and interest rates; performance of our assets and equipment; sufficiency of our budgeted capital expenditures in carrying out our business plan; our ability to complete our capital and maintenance projects on the timelines anticipated; applicable laws, regulations and government policies; the availability and cost of labour, services and infrastructure; the satisfaction by third parties of their obligations to CP; and capital investments by third parties. Although CP believes the expectations, estimates, projections and assumptions reflected in the forward-looking information presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current conditions, economic and otherwise, render assumptions, although reasonable when made, subject to greater uncertainty.

Undue reliance should not be placed on forward-looking information as actual results may differ materially from those expressed or implied by forward-looking information. By its nature, CP's forward-looking information involves 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 associated with 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, regulations and government policies, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; 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; trade restrictions or other changes to international trade arrangements; climate change; various events that could disrupt operations, including severe weather, such as droughts, floods, avalanches and earthquakes, and cybersecurity attacks, as well as security threats and governmental response to them, and technological changes; the demand environment for logistics requirements and energy prices, fiscal and monetary policy responses by governments and financial institutions, and disruptions to global supply chains. 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 Statements" in CP's annual and interim reports on Form 10-K and 10-Q.

The forward-looking information contained in this news release is made as of the date hereof. Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such 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 major ports on the west and east coasts. CP provides 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