Canadian Pacific announced its best-ever quarter and month for moving Canadian grain and grain products. The two records are the latest in a standout crop year of linking Canadian producers to worldwide markets. “The collaborative relationships CP has built with its customers, combined with responsive rail service, have contributed to another quarter of record-breaking grain movements,” said Joan Hardy, CP’s Vice-President Sales and Marketing, Grain and Fertilizers. “We thank our customers and CP family members who work safely and with purpose each day to keep this essential service moving in support of the Canadian agricultural industry. I am proud to be a CP railroader.”
During its second quarter ending June 30, CP moved 8.41 million metric tonnes (MMT) of Canadian grain and grain products. This broke the previous record of 7.9 MMT in the fourth quarter of 2019. During the month of June, CP moved 2.76 MMT of Canadian grain and grain products. This broke the previous June record of 2.4 MMT set in 2014.
CP has consistently delivered for Canadian farmers since the start of the 2019-2020 crop year amid high demand for transportation services. CP’s strong fall and winter performance established momentum going into spring. By March 31, CP was 6 per cent ahead of where it was at the same point in the record-setting 2018-2019 crop year, and has continued to build on that momentum. Crop-year volumes to date are now 8.8 per cent ahead of last year’s pace. “The strength of the CP network and operating model continue to show themselves in these achievements. We stand ready to meet what we expect will be strong demand in the final month of the 2019-2020 crop year,” Hardy said.
This year’s successes also attest to the efficiency of the 8,500-foot High Efficiency Product (HEP) train model. An 8,500-foot HEP train can carry in excess of 40 per cent more grain than the 7,000-foot train model when combined with the additional capacity of new high-capacity hopper cars. Customers are actively investing in their elevator networks to accommodate 8,500-foot trains. By year-end, more than 30 per cent of the CP-serviced unit train loaders will be 8,500-foot HEP qualified, increasing capacity and efficiency in the grain supply chain for customers and stakeholders. More than 2,700 new high-capacity hopper cars are now in service. These cars can carry 15 per cent more volume and 10 per cent more weight compared to the older Government of Canada cars they are replacing.
Shipping containers also played an important role in exporting Canada’s crop. This year, CP moved more than 650,000 metric tonnes of western Canadian grain to export markets in containers. With containerized grain included in the total, CP transported more than 30 MMT during the crop year.
CP also announced it hauled more Canadian grain and grain products in the 2019-2020 crop production year than any in its 139-year history. In total, CP moved 29.52 million metric tonnes (MMT) this crop year, exceeding last year’s record of 26.77 MMT by 2.75 MMT, or 10 per cent. “In this banner crop year, the men and women of CP proved again they’re more than ready for the task. I am immensely proud of the CP family and the entire grain supply chain in delivering a second consecutive crop-year record, and by such a significant margin. This truly shows the value of CP’s capacity for the movement of grain,” said Keith Creel, CP’s Chief Executive.
“Viterra depends on efficient, reliable transportation year-round,” said Kyle Jeworski, Viterra’s CEO. “With CP’s 8,500-foot HEP train model, Viterra can move more grain with each train, creating efficiencies for the whole supply chain. And CP’s reliable service throughout the crop year helped enable Viterra to meet our customers’ needs. I look forward to CP’s and Viterra’s shared success in meeting the demands of our Canadian farmers and global customers in the coming crop year.”