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About Canadian Pacific Kansas City Limited (CPKC)
Canadian Pacific Kansas City Limited (CPKC) (TSX: CP, NYSE: CP) is a Class I freight railway company and the first and only single-line transnational railway seamlessly linking Canada, the United States, and Mexico. Headquartered in Calgary, Alberta, Canada, CPKC operates an expansive rail network spanning approximately 20,000 route miles, providing unparalleled access to major ports across North America, including Vancouver, Atlantic Canada, the Gulf of Mexico, and Lázaro Cárdenas, Mexico.
Core Operations and Revenue Streams
CPKC specializes in the transportation of a diverse range of goods, including:
- Bulk Commodities: Grain, fertilizer, potash, coal, and energy products such as crude oil and frac sand.
- Intermodal Freight: Containers carrying consumer goods, electronics, and other merchandise.
- Temperature-Controlled Logistics: Fresh and frozen food products transported via its TempPro™ intermodal containers.
- Automotive Products: Vehicles and parts for North America's automotive industry.
- Chemicals and Plastics: Industrial inputs vital to manufacturing and production.
Through strategic partnerships and investments, CPKC also offers comprehensive supply chain solutions, leveraging its logistics expertise to deliver reliable, efficient, and competitive services.
Strategic Significance and Competitive Edge
The 2023 merger of Canadian Pacific Railway and Kansas City Southern positioned CPKC as a critical player in North American trade, enabling single-linehaul services that connect Canada and the Upper Midwest to Texas, the Gulf of Mexico, and deep into Mexico. This unique network eliminates the need for interchanges, reducing transit times and enhancing supply chain reliability.
Key infrastructure projects, such as the Patrick J. Ottensmeyer International Railway Bridge and its growing fleet of refrigerated intermodal containers, further solidify its role in facilitating cross-border commerce and addressing inefficiencies in cold chain logistics.
Innovation and Sustainability
CPKC is a leader in adopting innovative technologies to enhance operational efficiency and sustainability. Its Hydrogen Locomotive Program exemplifies its commitment to decarbonizing rail transport. By retrofitting diesel locomotives with hydrogen fuel cells, the company aims to reduce greenhouse gas emissions while maintaining high performance. Additionally, CPKC's renewable energy initiatives, including solar-powered electrolyzers for hydrogen production, showcase its dedication to a greener future.
In its 2025 Climate Mileposts report, CPKC outlined its ongoing efforts to improve locomotive fuel efficiency and expand real-world hydrogen locomotive testing, reinforcing its position as an environmentally responsible freight carrier.
Market Position and Growth Prospects
CPKC's unmatched network reach and strategic partnerships with companies like Americold and Ballard Power Systems enable it to capitalize on growing demand for integrated, cross-border logistics solutions. Its investments in infrastructure, such as temperature-controlled facilities and expanded rail capacity, position the company to meet evolving market needs while driving long-term growth.
With a focus on operational excellence, safety, and customer service, CPKC continues to deliver value to stakeholders, making it a cornerstone of North American trade and commerce.
Challenges and Industry Dynamics
Operating in a highly competitive and regulated industry, CPKC faces challenges such as fluctuating commodity prices, labor negotiations, and environmental regulations. However, its proactive approach to innovation, sustainability, and strategic investments mitigates these risks, ensuring its resilience and adaptability in a dynamic market landscape.
Conclusion
Canadian Pacific Kansas City Limited is a transformative force in North American freight rail, offering unparalleled connectivity, innovative solutions, and a commitment to sustainability. Its strategic vision and operational excellence make it a pivotal player in enabling efficient trade across Canada, the United States, and Mexico.
CPKC (TSX: CP, NYSE: CP) and Lanco Group/Mi-Jack have sold the Panama Canal Railway Company (PCRC) to APM Terminals, a division of A.P. Moller - Maersk. PCRC, which generated US$77 million in revenue and US$36 million in EBITDA in 2024, has been operating as a 50/50 joint venture since 1998.
The railway operates a strategic 47-mile track along the Panama Canal, providing ocean-to-ocean freight and passenger services. This divestment aligns with CPKC's strategy to focus on its core North American rail operations spanning Canada, the United States, and Mexico.
APM Terminals, which operates 60 locations across 33 countries, views PCRC as an attractive infrastructure investment that complements their intermodal container movement services. The acquisition is expected to enhance their service offerings to global shipping customers.
Canadian Pacific Kansas City (CP) has announced the filing of its notice of meeting and management proxy circular for its 2025 annual and special meeting of shareholders with Canadian and U.S. securities regulators. The meeting will be held virtually on April 30, 2025, at 9 a.m. MT.
While in-person attendance won't be possible, the virtual format enables broader shareholder participation, including voting rights and question submission. Shareholders can vote either by proxy before the meeting or online during the event. Detailed participation instructions and a Virtual AGM User Guide are available on the company's investor website, and will be sent directly to shareholders.
Canadian Pacific Kansas City (CP) announced that the United Steelworkers (USW), representing about 600 clerical and intermodal employees in Canada, has ratified a new four-year collective agreement. This marks the third collective agreement ratified by CPKC employees in Canada this year.
The agreement provides long-term labor stability, increased wages, and improved benefits. Earlier in February, two other agreements were ratified: one with Teamsters Canada Rail Conference Maintenance of Way Employees Division (representing approximately 2,300 engineering services employees) and another with Unifor (representing about 1,200 mechanical employees).
Canadian Pacific Kansas City (CP) has announced that its subsidiary, Canadian Pacific Railway Company, is issuing a US$1.2 billion debt offering, split between US$600 million of 4.800% Notes due 2030 and US$600 million of 5.200% Notes due 2035. The offering, expected to close on March 17, 2025, will be guaranteed by CPKC.
The net proceeds will be primarily used for refinancing existing debt and general corporate purposes. Until utilized, the funds may be invested in short-term investment grade securities or bank deposits. The offering is being managed by a syndicate led by Wells Fargo Securities, BofA Securities, Goldman Sachs, and Morgan Stanley as joint active bookrunners.
Canadian Pacific Kansas City (CP) has announced its Grain Elevator of the Year awards for 2023-2024, recognizing Cargill Elva in Canada and Elbow Lake Co-op Grain in the United States for their exceptional performance in grain handling operations.
Cargill Elva, located in Melita, Manitoba, is a first-time winner, having moved over 450,000 metric tonnes of grain with efficient and safe loading operations. Elbow Lake Co-op Grain in Minnesota secured the award for the third consecutive year, achieving the highest tonnage across the U.S. north network with more than 543,000 metric tonnes, showing an increase from the previous year. The facility has also expanded its operations by shipping multiple corn trains to Mexico through CPKC's network.
Canadian Pacific Kansas City (CP) has announced the completion of its 2024 annual report filing on Form 10-K with the U.S. Securities and Exchange Commission and Canadian securities regulators. The filing includes annual audited financial statements and management's discussion and analysis.
The company has made the report accessible to investors through their investor relations website. Shareholders can request printed copies of the complete 2024 audited financial statements at no cost via email or regular mail.
Canadian Pacific Kansas City (CP) has announced a new share repurchase program approved by the Toronto Stock Exchange. The company plans to buy back up to 37,348,539 common shares, representing approximately 4% of its issued and outstanding shares as of February 18, 2025.
The Normal Course Issuer Bid (NCIB) will run from March 3, 2025, to March 2, 2026. Purchases will be made through the TSX, NYSE, and alternative trading systems. CEO Keith Creel highlighted that this program follows the successful strengthening of the company's balance sheet after the CP-KCS merger, citing strong free cash flow generation and growth opportunities as key factors enabling the buyback.
The company will limit daily purchases to 351,655 shares on TSX and 25% of average daily trading volume on NYSE. All acquired shares will be immediately cancelled. CPKC plans to implement an automatic purchase plan to allow share purchases during internal quarterly blackout periods.
Canadian Pacific Kansas City (CP) has announced that President and CEO Keith Creel will be presenting at the 2025 J.P. Morgan Industrials Conference. The presentation is scheduled for March 13, 2025, at 8:15 a.m. ET. The company will provide a live audio webcast of the presentation through their investor relations website at investor.cpkcr.com, with a replay option available after the event.
Canadian Pacific Kansas City (CP) announced that Unifor, representing approximately 1,200 mechanical employees across Canada, has ratified a new four-year collective agreement. The agreement provides improved wages and benefits for mechanics, labourers, diesel service attendants, and mechanical support staff.
CPKC CEO Keith Creel highlighted that the agreement, which received strong support among mechanical employees, ensures long-term labor stability while maintaining safe and efficient customer service. This marks the second collective agreement ratification in 2025 for CPKC, following an earlier agreement with Teamsters Canada Rail Conference Maintenance of Way Employees Division, which represents about 2,300 engineering services employees.
Canadian Pacific Kansas City (CP) has released its 2025 Climate Mileposts report, outlining key sustainability initiatives. The company is advancing its Hydrogen Locomotive Program, which achieved over 6,000 miles in freight service testing by end of 2024. CPKC plans to expand its hydrogen test fleet with seven additional locomotives and a tender car throughout 2025.
The company conducted over 1,100 fueling events in 2024 as part of its B20 locomotive biofuel trial in British Columbia, testing advanced renewable biofuel blends. Additionally, CPKC is preparing to receive 100 Tier 4 diesel-electric locomotives in 2025, designed to reduce emissions and improve fuel efficiency.
CEO Keith Creel emphasized rail transport's superior fuel efficiency for land-based freight movement and reaffirmed CPKC's commitment to improving locomotive operating efficiency and hydrogen locomotive testing.
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