CALGARY,
AB, May 31, 2022 /CNW/ - Canadian Pacific
(TSX: CP) (NYSE: CP) today announced a new multi-year agreement
with CMA CGM Group, a world leader in shipping and logistics. CP
will become CMA CGM's primary rail provider in Canada, servicing the ports of Vancouver, Montreal and Saint
John, N.B.
"CP is proud to provide CMA CGM with safe and reliable service
that includes the shortest route miles to key markets," said
John Brooks, CP Executive
Vice-President and Chief Marketing Officer. "CP's dedication to
best-in-class service is enabling supply chain recovery that will
drive future growth opportunities for the North American
economy."
CP's strategic alignment with CMA CGM creates natural synergies
supporting sustainability and innovation, which will add density to
key lanes and strengthen operational efficiency.
CP's world-class access to the Port of Vancouver and Port of Montreal, combined with CP's strategic
connection to Port Saint John via New Brunswick Southern Railway,
will enable CP to move the majority of CMA CGM's freight from
Canadian ports to key Canadian and US Midwest inland markets.
This agreement also recognizes the future growth opportunities
connected to CP's proposed combination with the Kansas City
Southern, which remains subject to approval by the Surface
Transportation Board, bringing expanded market reach and creating
new efficiencies.
Note on 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.
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",
"will", "anticipate", "believe", "expect", "plan", "should",
"commit" or similar words suggesting future outcomes.
This news release contains forward-looking information relating,
but not limited, to, the delivery of goods from CMA CGM by CP, the
future growth of the business with CMA CGM and related matters
associated with the multi-year agreement between CP and CMA
CGM.
The forward-looking information contained in this news release
is based on current expectations, estimates, projections and
assumptions, having regard to CP's experience and its perception of
historical trends, and includes, but is not limited to,
expectations, estimates, projections and assumptions relating to:
the fuel efficiency of railways and CP's operations; the impacts of
existing and planned capital investments; North American and global
economic growth; commodity demand growth; agricultural production;
commodity prices and interest rates; performance of our assets and
equipment; applicable laws, regulations and government policies;
the availability and cost of labour on the timelines anticipated
and with the capabilities required, as well as the availability and
cost of services and infrastructure; the satisfaction by third
parties of their obligations to CP; the anticipated impacts of the
novel strain of coronavirus (and the disease known as COVID-19) and
its variants; and capital investments by third parties. Although CP
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,
CP'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; general
North American and global economic, 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; industry
capacity; shifts in market demand; changes in commodity prices;
uncertainty surrounding timing and volumes of commodities being
shipped; inflation; geopolitical stability; 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; 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; 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 and the U.S.; climate
change and the market and regulatory responses to climate changes;
anticipated in-service dates; success of hedging activities;
operational performance and reliability; regulatory and legislative
decisions and actions; 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; 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 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 Statements" in CP's
annual and interim reports on Form 10-K and 10-Q.
The forward-looking information contained in this news release
is made as of the date hereof. Except as required by law, CP
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
Canadian Pacific 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 cpr.ca to see the rail advantages of CP.
CP-IR
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SOURCE Canadian Pacific