CALGARY, BC, Nov. 17,
2023 /CNW/ - Canadian Pacific Kansas City (TSX: CP)
(NYSE: CP) (CPKC) today issued the following statement on the draft
decree concerning passenger rail service in Mexico issued by the Mexican Federal
Government:
CPKC is reviewing the draft decree and remains directly engaged
with the Mexican Federal Government regarding potential passenger
rail service on certain existing freight rail corridors.
CPKC de México has previously reached an agreement with the
Mexican Federal Government to perform a study of what is required
for the proposed new passenger rail service on the right of way of
the corridor between Mexico City
and Querétaro.
The draft decree, which is expected to become effective by
November 20, 2023, also identifies
the San Luis Potosí-Monterrey-Laredo corridor for the proposed
passenger rail service. As required by our concession, CPKC de
México will work closely with the Mexican Federal Government to
evaluate passenger service on that corridor.
The draft decree emphasizes that the public freight rail service
will be respected and as such, we do not expect an adverse impact
on our concession. CPKC has extensive experience hosting passenger
rail services in multiple locations across its network in
the United States and Canada while efficiently managing freight
service.
Forward-looking information
This news release contains certain forward-looking information
and forward-looking statements (collectively, "forward-looking
information") within the meaning of applicable securities laws in
both the U.S. and Canada.
Forward-looking information 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",
"guidance", "should" or similar words suggesting future outcomes.
This news release contains forward-looking information relating,
but not limited, to statements about the rail concession in
Mexico and proposed passenger rail
service.
The forward-looking information in this news release is based on
current expectations, estimates, projections and assumptions,
having regard to CPKC's experience and its perception of historical
trends, and may include, among others, expectations, estimates,
projections and assumptions relating to: changes in business
strategies, North American and global economic growth and
conditions; commodity demand growth; sustainable industrial and
agricultural production; commodity prices and interest rates;
performance of our assets and equipment; sufficiency of our
budgeted capital expenditures in carrying out our business plan;
geopolitical conditions, applicable laws, regulations and
government policies; the availability and cost of labour, services
and infrastructure; the satisfaction by third parties of their
obligations to CPKC; and carbon markets, evolving sustainability
strategies, and scientific or technological developments. Although
CPKC believes the expectations, estimates, projections and
assumptions reflected in the forward-looking information presented
herein are reasonable as of the date hereof, there can be no
assurance that they will prove to be correct. Current conditions,
economic and otherwise, render assumptions, although reasonable
when made, subject to greater uncertainty.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially from those
expressed or implied by forward-looking information. By its nature,
CPKC's forward-looking information involves 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 and
strategic opportunities; general Canadian, U.S., Mexican and global
social, economic, political, credit and business conditions; risks
associated with agricultural production such as weather conditions
and insect populations; the availability and price of energy
commodities; the effects of competition and pricing pressures,
including competition from other rail carriers, trucking companies
and maritime shippers in Canada,
the U.S. and Mexico; North
American and global economic growth and conditions; industry
capacity; shifts in market demand; changes in commodity prices and
commodity demand; uncertainty surrounding timing and volumes of
commodities being shipped via CPKC; inflation; geopolitical
instability; changes in laws, regulations and government policies,
including regulation of rates; changes in taxes and tax rates;
potential increases in maintenance and operating costs; changes in
fuel prices; disruption in fuel supplies; uncertainties of
investigations, proceedings or other types of claims and
litigation; compliance with environmental regulations; labour
disputes including the impact of the port workers' strike and
resolution of the strike in British
Columbia; changes in labour costs and labour difficulties;
risks and liabilities arising from derailments; transportation of
dangerous goods; timing of completion of capital and maintenance
projects; sufficiency of budgeted capital expenditures in carrying
out business plans; services and infrastructure; the satisfaction
by third parties of their obligations; currency and interest rate
fluctuations; exchange rates; effects of changes in market
conditions and discount rates on the financial position of pension
plans and investments; trade restrictions or other changes to
international trade arrangements; the effects of current and future
multinational trade agreements on the level of trade among
Canada, the U.S. and Mexico; climate change and the market and
regulatory responses to climate change; anticipated in-service
dates; success of hedging activities; operational performance and
reliability; customer, regulatory and other stakeholder approvals
and support; regulatory and legislative decisions and actions; the
adverse impact of any termination or revocation by the Mexican
government of Kansas City Southern de México, S.A. de C.V.'s
Concession; public opinion; various events that could disrupt
operations, including severe weather, such as droughts, floods,
avalanches and earthquakes, and cybersecurity attacks, as well as
security threats and governmental response to them, and
technological changes; acts of terrorism, war or other acts of
violence or crime or risk of such activities; insurance coverage
limitations; material adverse changes in economic and industry
conditions, including the availability of short and long-term
financing; the pandemic created by the outbreak of COVID-19 and its
variants and resulting effects on economic conditions, the demand
environment for logistics requirements and energy prices,
restrictions imposed by public health authorities or governments,
fiscal and monetary policy responses by governments and financial
institutions, and disruptions to global supply chains; the
realization of anticipated benefits and synergies of the CP-KCS
transaction and the timing thereof; the satisfaction of the
conditions imposed by the U.S. Surface Transportation Board in its
March 15, 2023 final decision; the
success of integration plans for KCS; other disruptions arising
from the CP-KCS integration; estimated future dividends; financial
strength and flexibility; debt and equity market conditions,
including the ability to access capital markets on favourable terms
or at all; cost of debt and equity capital; improvement in data
collection and measuring systems; industry-driven changes to
methodologies; and the ability of the management of CPKC to execute
key priorities, including those in connection with the CP-KCS
transaction.
The foregoing list of factors is not exhaustive. These and other
factors are detailed from time to time in reports filed by CPKC
with securities regulators in Canada and the
United States. Reference should be made to "Item 1A – Risk
Factors" and "Item 7 – Management's Discussion and Analysis of
Financial Condition and Results of Operations – Forward Looking
Statements" in CPKC's annual and interim reports on Form 10-K and
10-Q.
Any forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CPKC
undertakes no obligation to update publicly or otherwise revise any
forward-looking information, or the foregoing assumptions and risks
affecting such forward-looking information, whether as a result of
new information, future events or otherwise.
About Canadian Pacific Kansas City
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line
transnational railway linking Canada, the United
States and México, with unrivaled access to major ports from
Vancouver to Atlantic Canada to the Gulf of México to
Lázaro Cárdenas, México. Stretching approximately 20,000 route
miles and employing 20,000 railroaders, CPKC provides North
American customers unparalleled rail service and network reach to
key markets across the continent. CPKC is growing with its
customers, offering a suite of freight transportation services,
logistics solutions and supply chain expertise. Visit cpkcr.com to
learn more about the rail advantages of CPKC. CP-IR
Contacts:
Media
MediaRelations@cpkcr.com
Investment Community
Chris de
Bruyn
Tel: 403-319-3591
investor@cpkcr.com
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content:https://www.prnewswire.com/news-releases/cpkc-statement-on-mexican-federal-government-draft-decree-on-passenger-service-301992255.html
SOURCE CPKC