Canadian Pacific Railway president credits the record grain loading volume to the entire supply chain working together
CALGARY — Canadian Pacific Railway reported revenues of about $1.6 billion in the three-month period ending Sept. 30 and net income of $510 million, up 47 percent from $347 million in the third quarter of 2016.
Year-to-date revenue at the Calgary-based railway company was $4.841 billion as of Sept. 30, compared to $4.595 billion during the same period in 2016.
Canadian grain shipments were up four percent in the quarter, while U.S. grain shipments were down 24 percent amid weak market conditions, CP executives said.
Despite a slow start to Canadian grain shipping in the 2017-18 crop year, the company saw record grain car loadings in Canada in September.
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The company shipped more than 2.34 million tonnes in the four weeks from Sept. 3 to Sept. 30.
“On the grain front, although we did start a bit slow … we gained momentum, we established a rhythm and in September, on the Canadian side, we set an all-time record for grain loading for this company, an accomplishment that was entirely supply chain driven….” said CP president Keith Creel.
This is something “we should all be very proud of, working in concert both with the ports as well as our partners in business, the grain shippers.”
The company also reported strong volumes in coal and potash, where quarterly volumes were up 27 percent compared to 2016.
John Brooks, CP’s chief marketing officer, said bulk commodities including potash performed very well, especially in light of the later-than-expected start-up at the K+S Legacy mine in south-central Saskatchewan.
CP moved its first train load of K+S potash in late September and expects increasing volumes as that facility increases operations over the next few months.
Brooks also pointed to optimism on the Canadian grain front, where the latest production estimates from Statistics Canada predict total grain production around 66 million tonnes, which is in line with the three- to five-year average.
“We’re off to a strong start (in Canadian grain)…,” Brooks said.
“We set an all-time record in September and I can tell you that our dedicated (grain) trains are cycling about 16 percent faster, year-over-year, in our key lanes.”
During the first nine months of 2017, CP earned $1.107 billion in freight revenue from grain movement, up $66 million from $1.041 billion in 2016.
Year-to-date freight revenues from potash were also up sharply at $310 million, compared to $242 million in 2016.
Creel said the company is well-positioned to take advantage of expected improved shipper demand in the coming months.
CP recently reached a partnership agreement with Genesee & Wyoming Inc., and Bluegrass Farms of Ohio that will give CP access to a 90-acre intermodal shipping facility at Jeffersonville, Ohio.
The deal will allow CP to serve new shipping customers in the Jeffersonville, Columbus, Dayton and Cincinnati areas and will accommodate trade between the Ohio Valley and key markets in Asia and other parts of North America.
“This service allows our international intermodal customers to come through the Port of Vancouver and access markets deep in the Ohio Valley. The unique site also creates better round-trip economics for our customers by enabling the empty containers to be re-loaded with agriculture products and shipped back overseas.”
