CP

CP: TSB Fire Allegations ‘Irresponsible and Misleading’

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.”

“KCS delivered strong second-quarter volume growth, as our franchise benefited from unique growth drivers and the economy recovered from the COVID-19 downturn,” KCS President and CEO Patrick J. Ottensmeyer said. “Although we are pleased with the strong volume growth, we fell short of our own expectations for customer service.”

KCS 2Q21: Strong Volume; Service ‘Short of Expectations’ (Updated, Cowen)

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.