“Our ability to deliver sustainable, profitable growth has never been stronger,” Canadian Pacific (CP) President and CEO Keith Creel said during the railroad’s second-quarter 2021 earnings announcement.
Canadian Pacific (CP) on July 26 released its “first comprehensive climate strategy,” outlining how it is working to reduce greenhouse gas (GHG) emissions and adapt operations to the physical risks of climate change.
Canadian Pacific (CP) has elevated Pam Arpin to Vice President and Chief Information Officer. In addition, Portland, Ore.-based TriMet has named Rachelle Glazier Executive Director of Transportation Operations.
Canadian Pacific has responded to the Transportation Safety Board of Canada (TSB) investigation update concerning the June 30, 2021 fire in Lytton, B.C., which occurred in the vicinity of Mile 98.3 on CN’s Ashcroft Subdivision by stating that “railways are not a significant cause of wildfires in B.C., contrary to media and government speculation” and that “it is irresponsible and misleading to imply that railways are to blame for the fire.”
Kansas City Southern (KCS) on July 16 was the first Class I to report second-quarter 2021 earnings. For the possibly merger-bound railroad, revenue of $749.5 million grew 37% from the prior-year period ($547.9 million) based on higher carload volumes (up 31%), higher fuel surcharge, and the strengthening of the Mexican peso against the U.S. dollar. Service quality, however, was somewhat short of company expectations.
The cause of the wildfire in Lytton, British Columbia, is now under investigation.
A Canadian community in British Columbia, Canadian Pacific (CP) and CN are in the midst of support and recovery efforts, and Transport Canada has issued a Ministerial Order for the Class I railroads to cease area train movements for 48 hours, starting July 9.
Proposed merger partners CN and Kansas City Southern (KCS) have submitted to the Surface Transportation Board (STB) a reply to comments filed on the railroads’ voting trust agreement. They detailed why the trust should be approved. KCS rival merger partner Canadian Pacific (CP) is unconvinced.
At Cowen and Company, we are adjusting our rail models in advance of second-quarter earnings reports due later this month from the Class I railroads. The models reflect carloads in the quarter, mix, fuel, FX (foreign exchange) and cost implications as the supply chain remains tight.
Amtrak has asked the Surface Transportation Board (STB) to reject CN’s use of a voting trust in its proposed combination with Kansas City Southern (KCS). The passenger railroad’s comments were filed June 28, along with those from Canadian Pacific (CP), KCS’ rival merger partner.