CP continues to deliver goods safely and efficiently for its customers, shareholders, employees, communities and the broader economy.
We know that winter is coming each and every year, and we plan extensively for it. This year, however, we have experienced extreme cold and snow. The unusually harsh winter conditions we have dealt with require significant changes to our operating plan in order to operate safely. The weather challenges have been compounded by capacity issues our competitors are also having, specifically in the northern part of Canada; loss of pipeline capacity and other supply chain constraints; and unforeseen changes in market conditions that have driven demand upward. Despite this winter’s atypical conditions, CP has been able to able to perform at, or above, year-over-year levels in many respects, and we are continuing to build on this momentum. CP’s network is getting stronger and more fluid every day.
CP’s grain shipments vary greatly week to week depending on demand, weather and other factors. The annual closure of the St. Lawrence Seaway (indicated by red boxes above) removes the port terminals of Thunder Bay from ship-loading operations, forcing shipments to take longer routes to market and reducing overall grain throughput.
As the safest railway in North America, safety is the foundation of everything we do. As such, all current and any additional traffic needs to be handled with due care and attention. Incremental demand, particularly where it relates to the movement of dangerous commodities, needs to be accommodated ratably and responsibly, and not rushed. We owe that to our current customers, our future customers, our employees, shareholders and the 1,100 communities we operate through.
CP is adding more than 700 new employees (currently in various stages of training), as we work to proactively deal with high attrition rates and hiring in key locations across the network, and will add 100 additional locomotives, which will be integrated into the fleet through the summer.
CP continues to invest in service, productivity and safety and has earmarked between $1.35 billion to $1.5 billion in capital programs for 2018. From 2012-2017, CP invested nearly $7 billion in capital expenditures.
The Senate needs to swiftly pass Bill C-49 to bring more certainty to the entire supply chain.
An extraordinarily complex, interdependent supply chain requires collaboration and cooperation from all.
As noted in the Emerson report, "[N]ational railways are taking steps to improve their networks to haul historically high volumes of freight at high velocity, reduced cost, and with precise timing."
* Previously, it said that this winter was 60 percent colder and had 78 percent more days below -25 Celsius, that calculation was actually based on a subset of the network. In fact, for the period of Dec. 20, 2017 to Feb. 4, 2018, system-wide it was 46 percent colder (or approx. 6 degrees colder on average) with 167 percent more days below -25 Celsius (or approx. an additional 10 days below -25C during that period, as compared to the previous year).