CP commits to support Amtrak service expansions
in two U.S. regions
WASHINGTON, D.C. and
CALGARY, AB, Jan. 6, 2022 /PRNewswire/ - Amtrak and Canadian
Pacific Railway Limited (CP) (TSX: CP) (NYSE: CP) today announced
an agreement with Amtrak supporting the proposed combination of CP
and Kansas City Southern (KCS) railways.
"CP has been an excellent host of Amtrak intercity passenger
service year after year and has established itself as a leader in
the railroad industry," said Stephen J.
Gardner, Amtrak President. "We welcome CP's commitment to
our efforts with states and others to expand Amtrak service and are
pleased to have reached an agreement formalizing CP's support of
Amtrak expansion in the Midwest and the South.
"Given CP's consistent record as an Amtrak host, we support CP's
proposal to expand its network," Gardner added. "This is exactly
what Congress and the Administration are seeking: Amtrak and the
freight railroads working together to benefit freight customers,
Amtrak passengers, our state/regional partners and the general
public."
"We are proud of the success we have achieved as a host railroad
providing industry-leading service to Amtrak on our lines," said
Keith Creel, CP President and Chief
Executive Officer. "We thank Amtrak for its support of our historic
combination, which will have no adverse effects on intercity
passenger service. CP is pleased to continue to support Amtrak and
its infrastructure projects to provide capacity needed to
accommodate additional service."
CP has consistently received an A rating from Amtrak in its
annual host railroad report card, recognizing its industry-leading
on-time performance record. CP is also the first Class I
railroad to complete 100 percent certification of its Amtrak
schedules to the U.S. Surface Transportation Board (STB).
CP has committed to maintaining its industry-leading role as a
host railroad and to cooperating with Amtrak to implement its
long-term strategic vision to bring new and expanded intercity
passenger rail service to more North Americans, including:
- Increased frequency on the Hiawatha Service between
Chicago and Milwaukee.
- Extending Hiawatha Service from Milwaukee to St.
Paul, Minn., to create a second round-trip on the Twin Cities-Milwaukee-Chicago corridor.
- Passenger service through the Detroit River Tunnel between
Michigan and Ontario to Windsor and Toronto (with connections to VIA Rail
Canada).
Subject to CP's application for control of KCS being approved by
the STB, the agreement also includes CP's commitment to support
Amtrak efforts to work with the Southern Rail Commission (SRC)
and others for the first service in more than 50 years on two U.S.
routes:
- Establish Amtrak service between New
Orleans and Baton Rouge,
La.
- Study the potential for Amtrak service between Meridian, Miss., and Dallas.
"We appreciate Amtrak's efforts to provide additional intercity
passenger rail service that will benefit the people and economies
of both Minnesota and Wisconsin," said Minnesota Department of
Transportation Commissioner Margaret
Anderson Kelliher. "Once complete, the second daily round
trip between Saint Paul and
Chicago is expected to improve
existing infrastructure and provide increased choice for residents
traveling between some of our major cities - with stops in towns
and cities of all sizes along the way."
"WisDOT looks forward to continue working with Minnesota DOT,
Illinois DOT, Amtrak, CP, and the Federal Railroad Administration
(FRA) to implement planned additional daily passenger trains on
the Twin Cities-Milwaukee-Chicago and Milwaukee-Chicago Amtrak
Hiawatha Service routes," said Wisconsin Department of
Transportation (WisDOT) Secretary Craig
Thompson. "The agreement between Amtrak and CP facilitates
the realization of the full benefits of WisDOT's FRA grants for the
Twin Cities-Milwaukee Chicago Intercity Passenger Rail Project and
the Muskego Yard Freight Bypass of Milwaukee Intermodal Station
Project. Amtrak and CP continue to be strong partners in our
efforts to achieve improved transportation options for rural and
urban areas across Wisconsin."
"We appreciate the work Amtrak is doing to unite more of the
south with passenger trains, from Mobile to New Orleans to Baton
Rouge and now opening the door in this agreement to directly
connect Mississippi and
Louisiana with Texas on the I-20 Corridor," said SRC Chairman
Knox Ross of Mississippi. "The SRC
continues to be impressed by CP welcoming the start of new Amtrak
service west of New Orleans to
Baton Rouge, while other railroads
have fought new Amtrak service."
Amtrak and CP will file their agreement as part of the docket in
the CP-KCS proceeding at the STB.
FORWARD LOOKING STATEMENTS AND INFORMATION
This news release contains certain forward looking statements
and forward looking information (collectively, "FLI") relating to
CP 's relationship with Amtrak, including plans relating to the
expansion of existing passenger services and creation of new
service routes. FLI is typically identified by words such as
"anticipate", "expect", "project", "estimate", "forecast", "plan",
"intend", "will", "target", "believe", "likely" and similar words
suggesting future outcomes or statements regarding an outlook. All
statements other than statements of historical fact may be FLI.
Although we believe that the FLI is reasonable based on the
information available today and processes used to prepare it, such
statements are not guarantees of future performance and you are
cautioned against placing undue reliance on FLI. By its nature, FLI
involves a variety of assumptions, which are based upon factors
that may be difficult to predict and that may involve known and
unknown risks and uncertainties and other factors which may cause
actual results, levels of activity and achievements to differ
materially from those expressed or implied by these FLI, including,
but not limited to, the following: the realization of anticipated
benefits and synergies of the CP-KCS transaction and the timing
thereof; the success of integration plans; the focus of management
time and attention on the CP-KCS transaction and other disruptions
arising from the CP-KCS transaction; changes in business strategy
and strategic opportunities; 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;; the ability of
management of CP, its subsidiaries and affiliates to execute key
priorities, including those in connection with the transaction;
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; industry capacity; shifts in market demand;
changes in commodity prices and commodity demand; uncertainty
surrounding timing and volumes of commodities being shipped;
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; 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;
ability to achieve commitments and aspirations relating to reducing
greenhouse gas emissions and other climate-related objectives;
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
Mexico, S.A. de C.V.'s Concession;
public opinion; various events that could disrupt operations,
including severe weather events, 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; and 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.
We caution that the foregoing list of factors is not exhaustive
and is made as of the date hereof. Additional information about
these and other assumptions, risks and uncertainties can be found
in reports and filings by CP and KCS with Canadian and U.S.
securities regulators, including any proxy statement, prospectus,
material change report, management information circular or
registration statement to be filed in connection with the CP-KCS
transaction. Reference should be made to "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations—Forward Looking Statements" in CP's and KCS's
annual and interim reports on Form 10-K and 10-Q. Due to the
interdependencies and correlation of these factors, as well as
other factors, the impact of any one assumption, risk or
uncertainty on FLI cannot be determined with certainty.
Except to the extent required by law, we assume no obligation to
publicly update or revise any FLI, whether as a result of new
information, future events or otherwise. All FLI in this news
release is expressly qualified in its entirety by these cautionary
statements.
About Amtrak®
For 50 years, Amtrak has connected
America and transformed transportation by modernizing train travel
and building for the future. Amtrak will continue to play an
important role in the national transportation network for the next
50 years and beyond by operating a safe, environmentally efficient
and fiscally responsible business by providing travelers with an
experience that sets a new standard. Book travel, check train
status, access your eTicket and more through the Amtrak app.
Learn more at Amtrak.com and connect with us
on Twitter, Instagram, Facebook and LinkedIn.
About Canadian Pacific
Canadian Pacific (TSX: CP)
(NYSE: CP) is a transcontinental railway in Canada and the
United States with direct links to major ports on the west
and east coasts. CP provides 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
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SOURCE Canadian Pacific