Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced a new partnership with Genesee & Wyoming Inc. (G&W) (NYSE: GWR) and Bluegrass Farms of Ohio that will open up the Ohio Valley to CP customers and further extend CP's reach into key North American markets.
CP has an exclusive agreement with Bluegrass Farms of Ohio to use its 90-acre intermodal facility in Jeffersonville, Ohio located strategically on the I-71 corridor with the ability to serve the Columbus, Cincinnati and Dayton markets. The farm consortium will continue to own the facility, and will operate it on behalf of CP. CP has also come to an agreement with G&W, which services the site through its Indiana & Ohio (IORY) line.
"Through strategic partnerships and innovative thinking, we are expanding our reach and increasing optionality for our customers," said Keith Creel, CP President and Chief Executive Officer. "This service allows our international intermodal customers to come through the Port of Vancouver and access markets deep in the Ohio Valley. The unique site also creates better round trip economics for our customers by enabling the empty containers to be re-loaded with agriculture products and shipped back overseas."
The site offers CP and G&W a ready-made intermodal facility on the IORY line that is able to accommodate intermodal and bulk shipments, along with the ability to provide transloading services of bulk agricultural products into containers. The secure site also features extensive container and trailer storage and the ability to grow with current and future customers.
"Our partnership with Canadian Pacific is an excellent example of how short line railroads can extend the reach of the Class 1 network," said Jack Hellmann, G&W Chairman, President and Chief Executive Officer. "This intermodal terminal not only offers a new rail option to and from the Ohio Valley, but was purpose built to provide backhaul opportunities that will enable customers to reduce overall transportation costs and enhance their competitive advantage."
"We are excited to be working closely with CP and have always believed that this is the perfect site to not only reach into the Ohio Valley with imports, but to deliver high-quality, sustainable agricultural products back on the export side," said Dave Martin, President of Bluegrass Farms of Ohio.
The new service is another in a suite of options that CP has created to better meet the needs of the marketplace and leverages its innovative live-lift operation at Portal, North Dakota and its best-in-class daily service between Vancouver and Chicago.
CP is also expanding its sales and marketing presence in Asia, with key positions being added in China and Singapore.
"We are putting more dots on the map, expanding our reach and working with current and potential customers to sustainably grow our business and theirs," Creel said.
Above: CP today announced a new partnership with Genesee & Wyoming Inc. and Bluegrass Farms of Ohio that will open up the Ohio Valley to CP customers and further extend CP's reach into key North American markets.
Canadian Pacific Railway Limited (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 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 CP. CP-IR.
This news release contains certain forward-looking information within the meaning of applicable securities laws relating, but not limited, to the implementation and results of CP's marketing and operations initiatives, priorities and plans, anticipated performance, business prospects, programs and strategies. This forward-looking information also 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 "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "should" or similar words suggesting future outcomes.
Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CP's forward-looking information involves numerous assumptions, 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 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; changes in commodity prices; uncertainty surrounding timing and volumes of commodities being shipped via CP; 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; 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. 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 Information" in CP's annual and interim reports on Form 10-K and 10-Q.
Readers are cautioned not to place undue reliance on forward-looking information. Forward looking information is based on current expectations, estimates and projections and it is possible that predictions, forecasts, projections, and other forms of forward-looking information will not be achieved by CP. 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.