CALGARY, Alta., March 8, 2022 /PRNewswire/ – Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) (“CP”) announced today that, in conjunction with Kansas City Southern (“KCS”) on an interline basis, it has successfully launched the first international dedicated intermodal train network between Lázaro Cárdenas and the American Midwest. This first Lázaro Cárdenas to Chicago train was born out of the need to avoid undue delays due to the unprecedented and ongoing supply chain challenges affecting North America Western coast.
The first train carrying containers unloaded at Lázaro Cárdenas arrived Tuesday morning at CP’s Bensenville Yard in the Chicago region. CP is pleased to report that the total transit time from vessel arrival at Lazaro to train arrival at Chicago was only seven days. CP and KCS have cooperated as interline carriers to offer a new intermodal service responding to market demand.
“This Mexico-to-Midwest train is a proof of concept and a sign of things to come if a combined Canadian Pacific Railway in Kansas City (“CPKC”) is approved by the Surface Transportation Board (“STB”),” said Keith Creel, President and CEO of CP. “With the STB’s approval, CPKC will work with our customers and invest in new rail infrastructure and services to unlock the full potential of the combined network to offer unrivaled supply chain alternatives and advantages over other options. rail through congested ports and a real alternative to the highway. I would consider creating a new Mexico Midwest Express interline service that could provide all of these benefits.”
If the STB approves the tie-up, CPKC would make the necessary investments to offer regular Lázaro Cárdenas to Chicago on a single line and support the enormous growth potential that would come from new, competitive and reliable rail transportation options for domestic shippers. With minimal platform downtime, smooth and seamless border crossing, and expedited rail service, there is an opportunity to create an end-to-end transit experience that will be unmatched on the West Coast if the merger is approved. . .
A CP-KCS combination will enable a host of new rail services offering an improved competitive alternative to existing rail service providers. The single integrated rail system would link major ports on the US Gulf, Atlantic and Pacific coasts to major foreign markets.
For more information on the transaction and the benefits it is expected to bring to all stakeholders, visit FutureForFreight.com.
FORWARD-LOOKING STATEMENTS AND INFORMATION
This press release contains certain forward-looking statements and forward-looking information (collectively, “FLI”) relating to the development of a new interline service from Lázaro Cárdenas to Chicago. FLI is usually identified by words such as “anticipate”, “expect”, “project”, “estimate”, “anticipate”, “plan”, “intend”, “will”, “target “, “believe”, “probable”. ” and similar words suggesting future results or statements regarding a prospect. All statements other than statements of historical fact may be FLI.
Although we believe the FLI to be reasonable based on the information available today and the processes used to prepare it, such statements are not guarantees of future performance and you are cautioned not to place undue reliance on the FLI. By its nature, the FLI involves a variety of assumptions, which are based on factors that may be difficult to predict and which may involve known and unknown risks and uncertainties and other factors which may cause actual results, activity levels and achievements differ materially from those expressed or implied by these FLIs, including, but not limited to, the following: the realization of the anticipated benefits and synergies of the transaction CP-KCS and its schedule; the success of integration plans; the concentration of management’s time and attention on the CP-KCS Transaction and other disruptions arising from the CP-KCS Transaction; changes in business strategy and strategic opportunities; estimated future dividends; financial strength and flexibility; debt and equity market conditions, including the ability to access capital markets on favorable terms or not at all; cost of debt and equity; the ability of management of CP, its subsidiaries and affiliates to execute on key priorities, including those related to the CP-KCS transaction; general social, economic, political, credit and business conditions in Canada, the United States, Mexico and around the world; risks associated with agricultural production such as weather conditions and insect populations; the availability and price of energy products; the effects of competition and pricing pressures, including competition from other rail carriers, trucking companies and ocean shippers in Canadathe United States and Mexico; North American and global economic growth; industry capacity; changes in market demand; changes in commodity prices and demand for commodities; uncertainty surrounding the timing and volumes of products shipped; inflation; geopolitical instability; changes in laws, regulations and governmental policies, including rate regulation; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; interruption of fuel supply; uncertainties of investigations, proceedings or other types of claims and litigation; compliance with environmental regulations; labor disputes; changes in labor costs and labor difficulties; risks and liabilities arising from derailments; transport of dangerous goods; schedule for completion of capital and maintenance projects; the adequacy of budgeted capital expenditures to achieve business plans; services and infrastructure; the fulfillment by third parties of their obligations; currency and interest rate fluctuations; change rate; the effects of changes in market conditions and discount rates on the financial condition of pension plans and investments; trade restrictions or other changes in international trade agreements; the effects of current and future multinational trade agreements on the level of trade between Canadathe United States and Mexico; climate change and market and regulatory responses to climate change; ability to achieve commitments and aspirations related to reducing greenhouse gas emissions and other climate-related goals; planned commissioning dates; the success of hedging activities; operational performance and reliability; approvals and support from customers, regulators and other stakeholders; regulatory and legislative decisions and actions; the adverse impact of any termination or revocation by the Mexican government of Kansas City Southern of Mexico, Concession of SA de CV; public opinion; various events that could disrupt operations, including severe weather events, such as droughts, floods, avalanches and earthquakes, and cybersecurity attacks, as well as security threats and government response to those these, and technological changes; acts of terrorism, war or other acts of violence or crime or risk of such activities; the limits of insurance cover; material adverse changes in economic and industry conditions, including the availability of short- and long-term financing; and the pandemic created by the outbreak of COVID-19 and its variants, and the resulting effects on economic conditions, the demand environment for logistics needs and energy prices, restrictions imposed by public health authorities or governments, fiscal and monetary policy responses of governments and financial institutions. institutions and disruptions to global supply chains.
We draw your attention to the fact that the above list of factors is not exhaustive and is established as of the date hereof. See “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 Forms 10-K and 10-Q. Due to the interdependencies and interrelationship of these and other factors, the impact of any assumption, risk or uncertainty on the FLI cannot be determined with certainty.
Except to the extent required by law, we undertake no obligation to publicly update or revise any FLI, whether as a result of new information, future events or otherwise. All FLIs in this press release are expressly qualified in their entirety by these caveats.
About Canadian Pacific
Canadian Pacific is a transcontinental railway in Canada and United States with direct connections to major ports on the west and east coasts. CP offers its North American customers competitive rail service with access to key markets around the world. CP grows with its customers, offering a range of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see CP rail benefits. CP-IR
SOURCE Canadian Pacific