Cash Flow

[Hopperbin]

Although I am open market on our grain I do have second and different thoughts on our rail industry. Contradictory of course but if our rails tracks were gov't owned like our highways I think we would have much better service. For instance in China if you did want to ship something although a diff animal it would be shipped the next day by rail. Not saying China is the way to go but our rails need improving. Ordering cars and getting cars within days should be an industry standard.

[sumdumguy]

Time for researchers to come up with a new
cash crop. I remember watching the first Lentil
field in our district. Pretty yellow with a few purple
thistles.

[TOM4CWB]

C.P. Mustard,

CN: CN targets C$1.7 billion in 2011 capital investments to maintain and improve its network and grow the business.

“CN's capital spending program is critical to these safety, growth and service objectives. In the last five years, CN spent almost C$8 billion on capital improvements. Such investments serve to build a quality network that, in turn, supports economic growth across Canada and the United States.”

http://www.cn.ca/en/media-news-capital-investments-20110209.htm

CP: Viterra and Canadian Pacific Sign New Service Agreement


Recent CP News

CALGARY, ALBERTA--(Marketwire - Dec. 19, 2011) - Viterra Inc. ("Viterra") (TSX:VT) (ASX:VTA) and Canadian Pacific ("CP") (TSX:CP) (NYSE:CP) today announced the signing of a new service improvement agreement to enhance supply chain efficiencies.

The agreement will empower Viterra and CP to work together on supply chain management, such as sharing performance benchmarks and evaluating opportunities as they arise. This proactive approach to further improve CP's rail-based supply chain will benefit not only Viterra, but growers and other industry stakeholders as well.

"Through our scheduled grain service, enhanced systems for car request management, new productivity tools, and customer service agreements, CP is further redefining its models for service reliability and operational efficiency," said Jane O'Hagan, CP's EVP & Chief Marketing Officer. "The results of this work are leading to increased carrying capacity for the railway to the mutual benefit of customers such as Viterra and the entire grain handling system."

"This agreement allows Viterra and CP to work together to ensure supply chain reliability and improve service for our grower and export customers. Viterra works closely with growers to market and handle their grain and provide timely delivery to domestic and international customers. Rail service reliability is a critical component, and with this agreement we believe that continuous supply chain improvements can be achieved," said Fran Malecha, Viterra's Chief Operating Officer, Grain. "Viterra and CP are committed to achieving further rail service efficiencies, which we believe will benefit all key stakeholders, making our sector even more vibrant."

Although confidential in nature, the agreement outlines the responsibilities of both parties regarding the movement of Viterra grain from origin to destination as well as dispute resolution provisions. Viterra is one of the largest bulk shippers on CP. Viterra benefits from an efficient network of train loading facilities across the Canadian Prairies and port terminals in Vancouver, Thunder Bay and Montreal.

http://investing.businessweek.com/research/stocks/news/article

North American railroad Canadian Pacific (CP) has completed its first year of infrastructure enhancements to the North Main Line between Winnipeg and Edmonton.

The C$250 million (US$242m) infrastructure programme is a three-year plan to upgrade 850 miles in three provinces. During the 2011 work season, CP completed 155 miles of track enhancements.

Improvements include rail and tie upgrades, new and extended sidings to handle more long trains and public crossing upgrades. In addition, CP will enhance efficiencies at CP yards in Saskatchewan.

The upgrades will enable CP to increase track speed and capacity and improve service reliability for freight customers in markets such as agriculture, fertiliser and energy production.

CP Executive VP of operations Mike Franczak said: “The investment provides flexibility and alternative route options with operating speeds equivalent to its southern Canadian route.”

“Not only will the North Main upgrade increase capacity and raise train speed, it will offer a more direct route for some bulk and intermodal traffic.”

In a related story, CP and the province of Manitoba have signed a 10-year memorandum of agreement to help improve the efficiency and effectiveness of the Manitoba transport system."

Sooooo

$$$Billions being spent to upgrade and make rail service better.

We need more capacity to meet the needs of our new marketing system... and the rail roads are improving the system.

[mustardman]

And we Need regulated Port Access so all players can use them not just a couple like Viterra

[bucket]

The re-balancing of acres is exciting, but the markets and prices will dictate how or when to sell.

Viterra has been putting specials in different points to move the grain at times to those points. Its called logistics. Fill an elevator with durum for late August delivery and have the train there at the same time and then move on to the other special.

There should be pricing within the next month and that may be why some companies are waiting, for later delivery. They may be looking at taking the march/april delivery, offering a premium to hold, and then going after special crop for the fall.

It all needs to be watched regularly. It should soon all wash out once the photo op contracts are done being signed.

Not all the players, including the new cwb, are bidding for grain yet so there is no sense in getting in a panic to sign.

Vitterra might be getting some business done but remember a horse that shits fast doesn't shit for long.

[notaredneck]

Once again Tom...high as a kite!!!!

[TOM4CWB]

notaredneck,

'Once again Tom...high as a kite!!!!'

I do try to look at issues from 10,000 feet at times... gives a better perspective... is that what you meant???

Cheers!

Merry Christmas!

All the best in 2012!!