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CP’s planned 2018 capital program sees bump over 2017

Canadian Pacific Railway will target a capital program between CA$1.35 billion (US$1.08 billion) and CA$1.5 billion (US$1.2 billion) in 2018.

At the low end, the capital plan reflects an eight percent increase over 2017's targeted CA$1.25 billion (US$955 million) capital plan, while at the high end, it could represent a 20% increase over 2017 numbers.

Nadeem Velani, CP's chief financial officer, said during the railroad's 2017 Q4 earnings call that the wide range is due to the possibility of the Class 1 investing to upgrade its grain hopper fleet. The decision to upgrade the fleet rests on the outcome of Canada's Transportation Modernization Act (Bill C-49), which is a proposal that, among other things, would change the Maximum Revenue Entitlement in a way that would promote hopper car investments.

Keith Creel, president and CEO, also took time during the call to mention the railroad's improved safety statistics pointing to a 16 percent reduction in personal injuries and a 21 percent reduction in train accidents.

"On a full year basis, our train accidents frequency finished at an all time low, marking the 12th consecutive year CP has lead the industry in this key safety metric," said Creel.

Original author: Mischa Wanek-Libman, editor

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