Canadian Pacific Announces Multi-Year Agreement with CMA CGM
CALGARY, Alta., May 31, 2022 /PRNewswire/ – Canadian Pacific (TSX: CP) (NYSE: CP) today announced a new multi-year agreement with the CMA CGM Group, a world leader in shipping and logistics. CP will become CMA CGM’s primary rail supplier by Canadaserving the ports of Vancouver, Montreal and Saint John, NB
“CP is proud to provide CMA CGM with a safe and reliable service that includes the shortest route miles to key markets,” said John Brooks, executive vice president and chief marketing officer of CP. “CP’s commitment to best-in-class service is enabling the supply chain recovery that will drive future growth opportunities for the North American economy.
CP’s strategic alignment with CMA CGM creates natural synergies supporting sustainability and innovation, which will add density to core lanes and enhance operational efficiency.
CP’s world-class port access to Vancouver and port of Montrealcombined with CP’s strategic connection to Port Saint John via New Brunswick Southern Railway, will enable CP to move the majority of CMA CGM’s freight from Canadian ports to major inland markets in Canada and the US Midwest.
This agreement also recognizes future growth opportunities related to CP’s proposed combination with Kansas City Southern, which remains subject to Surface Transportation Board approval, expanding market reach and creating new savings.
Note on forward-looking information
This press release contains certain forward-looking information and forward-looking statements (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, statements regarding expectations, beliefs, plans, goals, objectives, assumptions, and statements regarding possible future events, conditions, and results of operations or performance. . Forward-looking information may contain statements with words or titles such as “financial expectations”, “key assumptions”, “will”, “anticipate”, “believe”, “expect”, “plan”, “should ‘, ‘commit’ or similar words suggesting future results.
This press release contains forward-looking information regarding, but not limited to, the delivery of CMA CGM goods by CP, future business growth with CMA CGM and related matters associated with the multi-year agreement between CP and CMA-CGM.
The forward-looking information contained in this press release is based on current expectations, estimates, projections and assumptions, given CP’s experience and its perception of historical trends, and includes, but is not limited to, expectations , estimates, projections and assumptions regarding: energy efficiency of CP’s railways and operations; the impacts of existing and planned capital investments; North American and global economic growth; growth in demand for raw materials; agricultural production; commodity prices and interest rates; the performance of our assets and equipment; applicable laws, regulations and government policies; the availability and cost of labor on schedule and with the required capacities, as well as the availability and cost of services and infrastructure; the fulfillment by third parties of their obligations to CP; the anticipated impacts of the new strain of coronavirus (and the disease known as COVID-19) and its variants; and capital investments by third parties. Although CP believes that the expectations, estimates, projections and assumptions reflected in the forward-looking information presented herein are reasonable as of the date hereof, there can be no assurance that they will prove to be correct. Current economic and other conditions render assumptions, while reasonable when made, subject to greater uncertainty.
Undue reliance should not be placed on forward-looking information, as actual results may differ materially from those expressed or implied by the forward-looking information. By its nature, CP’s forward-looking information involves inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including, but not limited to, the following factors: changes in strategies commercial; general economic, credit and business conditions in North America and around the world; risks associated with agricultural production, such as weather conditions and insect populations; the availability and price of energy products; the effects of competition and pricing pressures, including competition from other rail carriers; industry capacity; changes in market demand; changes in commodity prices; uncertainty surrounding the timing and volumes of products shipped; inflation; geopolitical stability; changes in laws, regulations and governmental policies, including rate regulation; changes in taxes and tax rates; potential increases in maintenance and operating costs; changes in fuel prices; interruption of fuel supply; uncertainties of investigations, proceedings or other types of claims and litigation; labor disputes; changes in labor costs and labor difficulties; risks and liabilities arising from derailments; transport of dangerous goods; schedule for completion of capital and maintenance projects; currency and interest rate fluctuations; exchange rate; the effects of changes in market conditions and discount rates on the financial condition of pension plans and investments; trade restrictions or other changes in international trade agreements; the effects of current and future multinational trade agreements on the level of trade between Canada and the United States; climate change and market and regulatory responses to climate change; planned commissioning dates; the success of hedging activities; operational performance and reliability; regulatory and legislative decisions and actions; public opinion; various events that could disrupt operations, including severe weather events, such as droughts, floods, avalanches and earthquakes, and cybersecurity attacks, as well as security threats and government response to those these, and technological changes; acts of terrorism, war or other acts of violence or crime or risk of such activities; the limits of insurance cover; material adverse changes in economic and industry conditions, including the availability of short- and long-term financing; the pandemic created by the outbreak of COVID-19 and its variants and the resulting effects on economic conditions, the demand environment for logistics needs and energy prices, restrictions imposed by the authorities of public health or governments, fiscal and monetary policy responses of governments and financial institutions, and disruptions to global supply chains. The foregoing list of factors is not exhaustive. These and other factors are detailed from time to time in reports filed by CP with the securities regulators of Canada and United States. See “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Forward-Looking Statements” in CP’s annual and interim reports on Forms 10-K and 10-Q.
The forward-looking information contained in this press release is made as of the date hereof. Except as required by law, CP undertakes no obligation to publicly update or otherwise revise any forward-looking information, or the foregoing assumptions and risks affecting such forward-looking information, whether as a result of new information, future events or otherwise.
About Canadian Pacific
Canadian Pacific is a transcontinental railway in Canada and United States with direct connections to major ports on the west and east coasts. CP offers its North American customers competitive rail service with access to key markets around the world. CP grows with its customers, offering a range of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see CP rail benefits. CP-IR
SOURCE Canadian Pacific