CP CEO calls for face-to-face discussions to address Canadian grain supply
CALGARY, May 8, 2014
CALGARY, May 8, 2014 /PRNewswire/ - Canadian Pacific (TSX: CP) (NYSE: CP)
Chief Executive Officer E. Hunter Harrison said today direct face-to-face
discussions based on facts are the best way to make progress on strengthening
Canada's grain handling and transportation system.
"We need constructive dialogue instead of the ongoing back and forth that is
happening in the media among various parties," said Harrison. "CP has reached
out to customers and other stakeholders, including the Western Grain Elevator
Association, and look forward to further constructive dialogue in person,
rather than through the media. This way, stakeholders like the WGEA, would
have a better understanding of supply chain realities and everything CP is
doing to continue to move record amounts of grain."
Harrison noted some CP Canadian grain highlights:
*CP continues to meet or exceed the Government of Canada's
Order-in-Council, which directed railways to move about 5,500 cars per
week. This level of service was what CP committed to in its open letter of
March 6^th, before the federal government order.
*Versus a 5-year average, CP has moved 15 per cent more grain from
September through April.
*CP grain volumes from September, 2013 through April, 2014 are up 10 per
cent compared to the same period last year.
*From March to April, 2014, after the extreme weather lifted, volumes were
up 11 per cent compared to last year and 14 per cent over the 5 year
*Added capacity from Winnipeg to Chicago this spring, which is supporting
the strong demand for Canadian grain into the United States.
Harrison also responded to suggestions grain should have moved to the United
States during the extreme winter weather periods. He noted sending grain cars
to a congested terminal like Chicago during this past winter would have
significantly impacted the supply chain's ability to move grain to the benefit
of Canadian farmers.
2013 was a record crop for the grain supply chain. Harrison said at close to
80 million metric tonnes (MMT), this crop is 27 per cent above the previous
2008/2009 record and 37 per cent above the 5-year average. This amounts to an
incremental 22 MMT of grain that needs to be moved to an export position in
addition to the 33 to 34 MMT that normally moves.
"The reality is that Canada's grain handling system is just not built to
handle this record amount of grain and CP is moving all the grain the supply
chain can currently handle," said Harrison. "CP is moving grain in all
available lanes but we need to move grain to fluid outlets with strong cycle
times to move as much grain as possible as quickly as possible."
Harrison added, "This is a capacity problem and the Canadian supply chain
needs to be searching for a capacity solution. Rail is only one element of the
About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) 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 a low-cost
provider that is growing with its customers, offering a suite of freight
transportation services, logistics solutions and supply chain expertise. Visit
www.cpr.ca to see the rail advantages of Canadian Pacific.
SOURCE Canadian Pacific
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