Canadian Pacific Kansas City Limited (TSX: CP, NYSE: CP) (“CPKC”)
and Teck Resources Limited (TSX: TECK.A and TECK.B, NYSE: TECK)
(“Teck”) announced today that CPKC and Teck Coal Limited have
entered into a long-term rail agreement for the transportation of
steelmaking coal from Teck’s four operations in southeastern B.C.
The agreement builds on existing services in place and runs until
the end of 2026.
In support of building green transportation corridors and as a
shared commitment to sustainability, CPKC and Teck intend to
collaboratively develop a unique pilot program that integrates the
use of CPKC’s hydrogen locomotives into Teck’s steelmaking coal
supply chain. It is anticipated that this effort will reduce
greenhouse gas emissions, with testing commencing in early
2024.
The companies will also work together to increase the resiliency
of the Canadian supply chain with investment in infrastructure and
technology from origin through to destination.
“This collaboration with CPKC to pioneer hydrogen locomotive
technology supports our climate action strategy and our objective
of achieving net zero by 2050,” said Jonathan Price, CEO, Teck.
“The agreement complements our Neptune Terminals investment and
other secured West Coast port capacity to support the efficient
movement of our high-quality Canadian steelmaking coal to our
global customers.”
“We are pleased to have reached this agreement continuing our
long history of success providing safe and efficient transportation
solutions to Teck,” said Keith Creel, CPKC President and Chief
Executive Officer. “CPKC is proud to work with organizations such
as Teck that share our passion to be leaders for a sustainable
future as we look to take the next step in the development of our
innovative hydrogen locomotive program.”
This agreement reflects both companies’ commitments to work
together to reduce emissions and enhance supply-chain reliability
to supply the resources required for a low carbon future.
Forward looking informationThis 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 steelmaking coal transportation of Teck
Resources Limited (“Teck”), the pilot program that integrates
hydrogen locomotives into Teck’s steelmaking coal supply chain,
future growth of the business with Teck, and related matters
associated with the long-term agreement between Teck and CPKC.
The forward-looking information contained in this news release
is based on current expectations, estimates, projections and
assumptions, having regard to CPKC's and Teck’s experience and
their perception of historical trends, and includes, but is not
limited to, expectations, estimates, projections and assumptions
relating to: changes in business strategies; the fuel efficiency of
railways and CPKC's operations; the impacts of existing and planned
capital investments; North American and global economic growth;
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;
carbon markets, evolving sustainability strategies, and scientific
or technological developments; and capital investments by third
parties. Although CPKC and Teck believe 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,
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: the ability to develop and the
performance and cost of hydrogen locomotive technology; 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; 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 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 decision; the success of integration plans for
KCS; the focus of management time and attention on the CP-KCS
transaction and 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 CPKCWith 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
About TeckAs one of Canada’s leading mining
companies, Teck is committed to responsible mining and mineral
development with major business units focused on copper, zinc, and
steelmaking coal. Copper, zinc and high-quality steelmaking coal
are required for the transition to a low-carbon world.
Headquartered in Vancouver, Canada, Teck’s shares are listed on the
Toronto Stock Exchange under the symbols TECK.A and TECK.B and the
New York Stock Exchange under the symbol TECK. Learn more about
Teck at www.teck.com or follow @TeckResources.
Contacts:CPMediamediarelations@cpkcr.com
Investment CommunityChris De Bruyn
403-319-3591investor@cpkcr.com
TeckInvestor Contact:Fraser
PhillipsSenior Vice President, Investor Relations & Strategic
Analysis604.699.4621fraser.phillips@teck.com
Media Contact:Chris Stannell Public
Relations Manager604.699.4368chris.stannell@teck.com
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