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3 May 2007

Canadian Pacific - Transport Canada Complete Negotiations on Hopper Car Operating Agreement

Canadian Pacific today announced it has completed negotiations with Transport Canada on a new operating agreement for the 6,300 federally owned hopper cars in CP service.
 
Subject to final federal government approvals, this agreement has been negotiated as a result of Government of Canada's 4 May 2006 announcement stating it would retain ownership of the cars and would negotiate a new operating agreement and rail car refurbishment program with Canadian Pacific and CN to ensure the cars remained in safe and efficient operating condition.
 
Under the agreement with Transport Canada, CP will, in addition to its normal maintenance practices, undertake over the next five years an extensive hopper car inspection and refurbishment program to ensure a quality fleet. This will include the replacement of poor-performing discharge gates with technologically superior units as well as a general refurbishment program for the other gates on these cars.
 
"Canadian Pacific is pleased to have completed these extended negotiations with the federal government as it will ensure a secure hopper car supply for farmers and enhance operational fluidity," said Fred Green, President and CEO. "This initiative will also strongly support our wildlife protection efforts by reducing grain and other wildlife attractants along our tracks."
 
The Government of Canada purchased 13,000 hopper cars in the 1970s and 1980s to support the movement of Western Canadian grain to export markets.
 
 
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