CALGARY, June 29 /PRNewswire-FirstCall/ - Canadian Pacific (TSX/NYSE: CP) today announced that the section of the CP main line east of Medicine Hat, AB that has been closed since June 18 is now open to traffic. This follows the reopening of the southern line between Lethbridge, AB and Swift Current, SK.
The one in 100 year rainfall event (one in 500 year event in some locations) that washed out portions of the CP main line in Southeastern Alberta and Southwestern Saskatchewan caused widespread flooding and resulted in the closure of the TransCanada Highway and the declaration of states of emergency in nine municipal jurisdictions.
During the 11 day outage CP utilized both secondary network routes and detour routes on other railways to minimize impacts to domestic and international supply chains. With the resumption of normal traffic routing CP will work closely with its customers and supply chain partners to reschedule and expedite shipments that may have been delayed by the temporary outage.
It is currently estimated that the impact of the main line closure will reduce Q2 earnings per share by 10 to 13 cents. It is also estimated that a majority of the deferred shipments will be moved in Q3.
Note on forward-looking information
This news release contains certain forward-looking statements. Undue reliance should not be placed on forward-looking information as actual results may differ materially.
By its nature, CP's forward-looking information involves numerous assumptions, inherent risks and uncertainties, including, but not limited to, the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods, timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather conditions, security threats and governmental response to them, and technological changes.
There are factors that could cause actual results to differ from those described in the forward-looking statements contained in this news release.
Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.
About Canadian Pacific:
Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America. Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 1,100 communities where we operate. Come and visit us at www.cpr.ca to see how we can put our ingenuity to work for you.
SOURCE Canadian Pacific