CALGARY, May 18, 2017 /PRNewswire/ - Canadian Pacific
(TSX: CP) (NYSE: CP) continues to review the Transportation
Modernization Act, or Bill C49, however the company believes
the proposed legislation reduces uncertainty and is cautiously
optimistic that it will lead to future development of the Canadian
transportation system.
"Like any piece of legislation, there are pieces that resonate with
certain groups and other pieces that do not," said CP's President
and Chief Executive Officer Keith
Creel. "We continue to review the details and will consult
with Transport Canada officials and other key stakeholders."
Of note, the Act mandates the installation and proactive usage of
Locomotive Voice and Video Recorders, replaces temporary extended
interswitching with long-haul interswitching (LHI), clarifies
language around "adequate and suitable" service and retains the
Maximum Revenue Entitlement (MRE) regime, with minor
modifications.
"The proposed changes to the Maximum Revenue Entitlement should
promote hopper car investments and that is good for the farmer,
good for CP and for all Canadian exporters," Creel said. "The
details on LHI need further review, however a move to commercial,
market-based fundamentals versus the current regulated approach to
extended interswitching is a step in the right direction. However
potential access to the Canadian network by U.S. based railroads
via LHI without reciprocity is not good public policy as it could
create an uneven playing field and disadvantage Canadian railways
vis-a-vis those in the U.S., with a negative impact on jobs and
investment."
In terms of service, CP believes the proposed legislation to be
balanced and focused on what service level is reasonable given the
specific facts and circumstances.
"We are committed to providing service that meets the needs of the
supply chain, from the farm all the way to the port - that remains
unchanged," Creel said.
Canadian railways are already recognized as providing some of the
best and lowest-cost railway shipping in the world. The amendments,
if they are to be considered successful over the long-term, must be
seen as improving the existing regulatory framework and enhancing
the supply chain in a way that is sustainable. The supply chain
needs to remain responsive to the realities of North American
transportation market forces.
"While it is too early to tell if there will be unintended
consequences from elements such as long-haul interswitching
and service requirements, overall, from a net-net perspective, we
believe the proposed legislation to be balanced," Creel said. "We
are supportive of anything that facilitates railway investment in
the supply chain to enable additional capacity and efficiency."
CP continues to review the full details of the Transportation
Modernization Act.
Forward Looking Statement
This news release contains certain forward-looking information
within the meaning of applicable securities laws relating, but not
limited to, proposed future legislative changes, railway and public
safety, our operations, priorities and plans, anticipated financial
performance, business prospects, planned capital expenditures,
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.
About Canadian Pacific
Canadian Pacific 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 cpr.ca to see the rail
advantages of CP.
SOURCE Canadian Pacific