CALGARY — In advance of its Investor Conference in Toronto, Canadian Pacific said it is aiming for “greater efficiency.”
“Canadian Pacific is driving greater efficiency into all aspects of the business,” said Fred Green, President and Chief Executive Officer. “We are accelerating our efficiency efforts and will continue with our disciplined approach to pricing and yield to deliver value to our shareholders despite the uncertainty of the economic climate.”
“Canadian Pacific plans capital investment in 2009 consistent with the current economic conditions,” said Kathryn McQuade, Executive Vice President and Chief Financial Officer. “We are pacing our capital investments to match the needs of our customers, and this will result in a significant reduction in our 2009 capital spending when compared with previous years.”
Capital investment is expected to be in the range of $800 million to $820 million which is a reduction of approximately $200 million when compared with the combined CP and Dakota Minnesota & Eastern Railroad (DM&E) expected capital spend for the full year 2008. This outlook assumes an average currency exchange rate of $1.17 per U.S. dollar (US$0.85).
Included in this capital plan is basic renewal of track infrastructure and the locomotive fleet, year one of a multi year intermodal terminal build at Regina, as well as pilot technology projects linked to the Railway of the Future program. Also included is US $100 million for upgrading the DM&E infrastructure which is consistent with the plans that were announced with the acquisition.