CP CEO calls for face-to-face discussions to address Canadian grain supply chain issues

CP CEO calls for face-to-face discussions to address Canadian grain supply chain issues

Information contained on this page is provided by an independent third-party content provider. WorldNow and this Station make no warranties or representations in connection therewith. If you have any questions or comments about this page please contact pressreleases@worldnow.com.

SOURCE Canadian Pacific

CALGARY, May 8, 2014 /PRNewswire/ - Canadian Pacific (TSX: CP) (NYSE: CP) Chief Executive Officer E. Hunter Harrison said today direct face-to-face discussions based on facts are the best way to make progress on strengthening Canada's grain handling and transportation system.

"We need constructive dialogue instead of the ongoing back and forth that is happening in the media among various parties," said Harrison. "CP has reached out to customers and other stakeholders, including the Western Grain Elevator Association, and look forward to further constructive dialogue in person, rather than through the media. This way, stakeholders like the WGEA, would have a better understanding of supply chain realities and everything CP is doing to continue to move record amounts of grain."

Harrison noted some CP Canadian grain highlights:

  • CP continues to meet or exceed the Government of Canada's Order-in-Council, which directed railways to move about 5,500 cars per week. This level of service was what CP committed to in its open letter of March 6th, before the federal government order.
  • Versus a 5-year average, CP has moved 15 per cent more grain from September through April.
  • CP grain volumes from September, 2013 through April, 2014 are up 10 per cent compared to the same period last year.
  • From March to April, 2014, after the extreme weather lifted, volumes were up 11 per cent compared to last year and 14 per cent over the 5 year average.
  • Added capacity from Winnipeg to Chicago this spring, which is supporting the strong demand for Canadian grain into the United States.

Harrison also responded to suggestions grain should have moved to the United States during the extreme winter weather periods. He noted sending grain cars to a congested terminal like Chicago during this past winter would have significantly impacted the supply chain's ability to move grain to the benefit of Canadian farmers.

2013 was a record crop for the grain supply chain.  Harrison said at close to 80 million metric tonnes (MMT), this crop is 27 per cent above the previous 2008/2009 record and 37 per cent above the 5-year average. This amounts to an incremental 22 MMT of grain that needs to be moved to an export position in addition to the 33 to 34 MMT that normally moves.

"The reality is that Canada's grain handling system is just not built to handle this record amount of grain and CP is moving all the grain the supply chain can currently handle," said Harrison.  "CP is moving grain in all available lanes but we need to move grain to fluid outlets with strong cycle times to move as much grain as possible as quickly as possible."

Harrison added, "This is a capacity problem and the Canadian supply chain needs to be searching for a capacity solution. Rail is only one element of the supply chain."

About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) 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 a low-cost provider that 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 Canadian Pacific.

©2012 PR Newswire. All Rights Reserved.

  • Most Popular StoriesMost Popular StoriesMore>>

  • National

    Obama warns of delay in social sec. checks and veteran's benefits

    Obama warns of delay in social sec. checks and veteran's benefits

    Web Producer: Lucy Valencia, Assignment Desk Editor WASHINGTON (AP) -- Declaring "we are not a deadbeat nation," President Obama warned on Monday that Social Security checks and veterans' benefits willMore >>
    Declaring "we are not a deadbeat nation," President Obama warned on Monday that Social Security checks and veterans' benefits will be delayed if congressional Republicans fail to increase the government's borrowing authority in a looming showdown over the nation's debt and spending.More >>
  • Your aging eyes

    Your aging eyes

    As more Americans head toward retirement and beyond, scientists expect the number of people with age-related eye problems to rise dramatically. But you can take steps to ensure you minimize those problems.More >>
  • Mercury rising

    Mercury rising

    Living in the southwest, warm temps are just part of life; but, lately as the mercury begins to rise it has proven to be too much for some. Emergency crews have been called out fordehydrations calls and area utilities have recorded larger than normal power uses. Some companies have opened their doors offering passer by’s a cool zone and even the Salvation Army has scoured the city looking for people in aide to help them get hydrated and get some shelter from the sun.More >>
    Living in the southwest, warm temps are just part of life; but, lately as the mercury begins to rise it has proven to be too much for some. Emergency crews have been called out fordehydrations calls and area utilities have recorded larger than normal power uses. Some companies have opened their doors offering passer by’s a cool zone and even the Salvation Army has scoured the city looking for people in aide to help them get hydrated and get some shelter from the sun.More >>
  • Resort fires 3 after pool water dumped in S. Tahoe

    Resort fires 3 after pool water dumped in S. Tahoe

    Officials at a South Lake Tahoe resort say they fired three employees who improperly drained about 15,000 to 20,000 gallons of chlorinated pool water into a stormwater basin.More >>
    Officials at a South Lake Tahoe resort say they fired three employees who improperly drained about 15,000 to 20,000 gallons of chlorinated pool water into a stormwater basin.More >>
  • Coming soon...Wal-Mart

    Coming soon...Wal-Mart

    On Wednesday the Yuma City Council voted to change the zoning designation on the proposed land acquired by Wal-Mart. The property located near the intersection of Avenue B and 8th Street was the home of a mobile home park as zones for residential use; the new designation changes that to mixed which will allow the new store to move in to the property. The new store will be the fifth Wal-Mart for Yuma County.More >>
    On Wednesday the Yuma City Council voted to change the zoning designation on the proposed land acquired by Wal-Mart. The property located near the intersection of Avenue B and 8th Street was the home of a mobile home park as zones for residential use; the new designation changes that to mixed which will allow the new store to move in to the property. The new store will be the fifth Wal-Mart for Yuma County.More >>
  • Father beats accused child abuser, Daytona police say

    Father beats accused child abuser, Daytona police say

    Police say a Daytona Beach father beat an 18-year-old man unconscious after finding him sexually abusing his son. Authorities say the father called 911 early Friday after he walked in on the alleged abuse.Frolander motionless on the living room floor. He had several knots on his face and was bleeding from the mouth. Police said the father -- who was not identified -- told investigators he walked in as Frolander was abusing the boy. Police did not release the boy's age, but Frolander is charge...More >>
    Police say a Daytona Beach father beat an 18-year-old man unconscious after finding him sexually abusing his son. Authorities say the father called 911 early Friday after he walked in on the alleged abuse.Frolander motionless on the living room floor. He had several knots on his face and was bleeding from the mouth. Police said the father -- who was not identified -- told investigators he walked in as Frolander was abusing the boy. Police did not release the boy's age, but Frolander is charge...More >>
  • "Graying" Population of Infertility Patients Brings New Challenges to Medical Practice and Society, Study at Center for Human Reproduction Finds

    "Graying" Population of Infertility Patients Brings New Challenges to Medical Practice and Society, Study at Center for Human Reproduction Finds

    As women seek fertility treatment later and later in life, even in their 50s, medical practice and society at large face new challenges, according to a new study...More >>
    As women seek fertility treatment later and later in life, even in their 50s, medical practice and society at large face new challenges, according to a new study published...More >>
  • Online Holiday Shopping

    Online Holiday Shopping

    Doesn’t online shopping sound rather serene this season, given gas prices and the feel-good knowledge that fewer mall trips can help the environment? What’s more, online shopping alleviates holiday shoppingMore >>