DME SD40-2 number 6364 heads an ethanol train eastbound under a signal bridge in Buffalo, New York - 20 Jun 2012 Steve Sloan.

3 December 2012

Canadian Pacific to Write-Down Powder River Basin Option

Calgary Alberta - Canadian Pacific today announced it will take a fourth quarter pre-tax, non-cash charge of approximately $180 million ($107 million after tax) on its option to build into the Powder River Basin (PRB).
 
When CP acquired the Dakota Minnesota & Eastern railroad in 2007, it also acquired the option to build a 260-mile extension of its network into coal mines in the PRB.
 
Components of the charge include the option, engineering design costs, land, and capitalized interest.
 
It is CP's intention to defer indefinitely plans to extend its rail network into the PRB coal mines based on continued deterioration in the market for domestic thermal coal, including a sharp deterioration in 2012.
 
Author unknown.