Canadian  News

 Home
 
2005

 Off-site link
 
1 January 2005

Canadian Pacific Year End Message

As we close out 2004, I would like to thank all employees of CPR for their contribution in addressing a challenging and fascinating year for CPR.
 
The massive increases in customer demand, January cold snaps and the February avalanche together set up a very difficult Q1. The disappointment and frustration we all felt brought out our best qualities as resiliance, innovation, and determination soon took over.
 
During the course of the next three quarters CPR employees took their company to new heights, setting new records for volumes of goods transported and, perhaps of greatest importance, delivering a very fluid railway. This was very evident during November and December 2004, when all other Class 1 railways in North America ran at a slower average train speed than the same period in 2003, CPR employees led the industry by running over 7% faster while moving increased volumes. This is truly a remarkable accomplishment and much of this effort is a result of the commitment by all operating teams to our Integrated Operating Plan (IOP).
 
Our success goes much deeper.
 
Over the course of 2004 we undertook some significant change efforts:
  • TYES, our new yards system was rolled out across most of our Canadian network through the combined efforts of Operations and IS teams. We learned as we went, overcoming obstacles and delivering a new tool to operate our railway better. Quebec, the USNE and SOO territories will be rolled out in Q1 2005;
  • The "bill of lading to cash team" undertook a monster of a task to simplify this stream of work across many disciplines and departments;
  • The Intermodal team centralized dispatch into Toronto (COG) in anticipation of next years roll out of TRIEX, a new system for all aspects of Intermodal;
  • A solution to a long struggling D&H line was found after considerable effort. We are on track to providing solid economic improvement for CPR, a more stable working environment for our D&H employee team and strategically, the shortest and fastest route between Detroit and Chicago;
  • After many years of rate declines the M&S team successfully delivered on major rate increases reflecting a very focused effort and their leveraging the value that shippers are now placing on CPR's services. We will continue on this path going forward;
  • The senior leadership team undertook a very significant government advocacy campaign at all levels of government to position CPR as the engine of economic growth for in the territory we operate and to seek a stable regulatory climate which will encourage CPR to invest in network expansion. While our work is not complete, policy makers and politicians are listening seriously to us for the first time in decades;
  • You delivered a substantial improvement in personal injury ratio. Sadly, this accomplishment is overshadowed by the loss of three of our fellow employees in work related incidents. Our thoughts and sympathies go out to all those affected by the loss of our team mates:  David Rutherford, Edmonton, AB; Christopher Lewis, Toronto, ON; Gary Kinakin, Revelstoke, BC.
The list of accomplishments is long and the list of those who helped deliver this success includes more than 16,000 people. Each of you assisted in your own way. Thank you.
 
Our goal of becoming North America's most fluid railway is becoming very reachable through the combined efforts of all of us. 2005 arrives with your railway running very well following the move of our IT servers and mainframe and a great start up after Christmas Day; more than 600 new railroaders trained, ready and very much welcomed into our company; 75 new AC locomotives on the property; the commodity and transportation markets strong, and CPR's leadership working diligently to position our company to expand for the first time in 25 years.
 
For those of you who own CPR shares the markets seem to appreciate both your accomplishments and CPR's prospects with share price over $41(Cdn) and $34(US).
 
On behalf of my associates on the Executive Committee, please accept my thanks for a job well done in 2004. We wish you a safe and happy new year and with continued focus in 2005 we look forward to celebrating our success together as we become North America's most fluid railway - and all the rewards that it will bring with it!
 
Fred Green - Executive Vice-President and Chief Operating Officer
 
  OKthePK Victoria British Columbia Canada - www.okthepk.ca