BISMARCK, ND, March 25 /PRNewswire/ - Canadian Pacific (TSX: CP) (NYSE: CP) today announced the investment of $100 million in North Dakota between 2010 to 2012. The investment plan will expand network capacity and enhance rail service in order to meet increased traffic demands.
"North Dakota is a source of growth for CP and the Midwest's economy with its increased grain production, vast oil deposits in the Bakken Formation and the continued strength of ethanol," said Jane O'Hagan, Executive Vice-President, Marketing & Sales and Chief Marketing Officer. "CP has been a key part of North Dakota's economy for the past century. We look forward to providing service to our customers far into the future and know these improvements will help alleviate current concerns, and meet our customers' future demands for consistent, reliable rail transportation alternatives."
North Dakota Governor Jack Dalrymple said CP's announcement is a positive development for the state.
"This is another step forward in our continuing efforts to expand our market access for farmers, for oil production and other industry," the Governor stated.
Current year infrastructure investment will begin in the spring with a majority of work expected to be completed in Fall 2011.
CP's 2011 North Dakota investment plan includes:
- Hiring over 70 new employees to expand CP's train crew base in 2011, growing CP's workforce in North Dakota by 18 percent. - A new Superintendent of Operations territory focused on traffic between Enderlin and Portal. - Capacity expansion over the next two years on the Newtown, Portal and Carrington subdivisions including yard track extensions in Max and Flaxton, and installation of a new runaround track in Newtown. - Increased budget for maintenance work on the Newtown subdivision. Notably, the installation of over 17 miles of rail replacement between Drake and Max including upgrades to 41 crossings. - Strategic installation of snow fence and grading projects to reduce winter snow drifting between Drake and Max.
"CP strives to provide quality customer service and meet customer needs," added CP Vice-President U.S. Operations Doug McFarlane. "Enhanced infrastructure, increased employee base and improved fluidity will ensure continued growth in the region and at CP."
CP is currently recruiting new employees. Visit www.cpr.ca to apply.
Note on forward-looking information
This news release contains certain forward-looking statements relating but not limited to our operations, anticipated financial performance and business prospects. 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, including long-term floating rate notes; and various events that could disrupt operations, including severe weather conditions, security threats and governmental response to them, and technological changes.
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 (TSX: CP) (NYSE: CP) operates a North American transcontinental railroad providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency. Visit cpr.ca and see how Canadian Pacific is Driving the Digital Railway.
SOURCE Canadian Pacific