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21 July 2004

CPR Claims Damages in Contract Dispute with Elk Valley Coal Partnership

Canadian Pacific Railway (TSX/NYSE: CP) said it has filed a statement of claim against defendant Elk Valley Coal Partnership. The claim is in respect of the defendant's failure to pay the full amount of rail freight charges, which are applicable pursuant to a transportation contract between CPR and Elk Valley Coal Partnership. The dispute relates to the shipment of coal from the defendant's Elk Valley mines in southeastern British Columbia to Vancouver area ports for overseas export. CPR's statement of claim is for $14.18 million to the end of June.
 
CPR's contract with Elk Valley Coal Partnership continues through to 31 Mar 2007. The dispute is not expected to affect the continued shipment of coal by CPR from the Elk Valley mines.