Canadian Pacific Railway Limited (TSE:CP, Mkt cap 28.27B, P/E 19.08, Div/yield 0.50/1.04, EPS 10.07, Shares 146.32M) reported this week that October was its best-ever month for Western Canadian grain movement to Vancouver, despite a weather-delayed harvest.
A record 15,865 carloads were transported to West Coast ports last month, overtaking the previous record of 15,449 carloads in March 2016. Total Western Canadian grain movements in the month climbed 3.9% over last year.
The company has invested millions of dollars over the past three years. This, together with new investment by its supply chain partners on grain country elevator capacity and port capacity, has already begun to fulfill the promise of greater efficiency, fluidity and velocity, CP said.
“I am proud of the CP team and applaud the efforts and early success of our supply chain partners as the crop season begins to accelerate into the colder months,” commented CP president and chief operating officer Keith Creel. “We continue to focus on providing best-in-class service to our customers and look forward to moving more Western Canadian grain to market for the benefit of farmers, shippers and the Canadian economy.”
CP also criticized what it described as “finger-pointing” at any single component of the complex supply chain.
It said that “misleading and inaccurate data published by the Ag Transport Coalition” promoted the notion that there is an adversarial relationship between the railways and Canada’s farm community.
More than three-quarters of CP’s Western Canadian grain business uses the Dedicated Train Program (DTP), which allows customers to control their own train assets for a period of 12 months or more. This means that customers use the capacity they need when they need it, the company explained.
“Trying to compare DTP performance to an ‘order fulfillment’ model, as the Ag Transport Coalition does, simply does not work,” CP concluded.
Canadian Pacific Railway Limited (TSE:CP), head-quartered in Calgary AB, operates railways in Canada and the United States and provides logistics and supply chain expertise. CP provides rail and intermodal transportation services over a network of approximately 13,700 miles, serving the principal business centers of Canada from Montreal, Quebec, to Vancouver, British Columbia (B.C.), and the United States Northeast and Midwest regions. The Company transports bulk commodities, merchandise freight and intermodal traffic. More from Reuters »
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