CP CEO calls for face-to-face discussions to address Canadian grain supply chain issues

CP CEO calls for face-to-face discussions to address Canadian grain supply 
chain issues 
CALGARY, May 8, 2014 /CNW/ - 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 6th, before the federal government
        --  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 average.
        --  Added capacity from Winnipeg to Chicago this spring, which is
            supporting the strong demand for Canadian grain into the United

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 
supply chain."

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 
Media Ed Greenberg Tel.: 612-849-4717 24/7 Media Pager: 855-242-3674 
Investment Community Nadeem Velani Tel.: 403-319-3591 email:investor@cpr.ca 
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CO: Canadian Pacific
ST: Alberta
-0- May/08/2014 20:15 GMT
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