CP Repurchasing 21,365,000 shares ($4B)

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Canadian Pacific Expresses Extreme Disappointment with Canadian Government Legislation
March 27, 2014 /Calgary, AB

Proposed interswitching rules could have serious damaging consequences to Canada's competitiveness and the Canadian economy

Canadian Pacific (TSX: CP) (NYSE: CP) today expressed its extreme disappointment with the legislation tabled yesterday afternoon in Ottawa by the Government of Canada.

"CP believes that the government has unfortunately chosen to introduce legislation which will do nothing to increase supply chain capacity in the grain handling system, will not move more grain to markets more quickly, and has the potential to cause great damage to the Canadian rail transportation system that is unquestionably the best in the world," said CP Chief Executive Officer E. Hunter Harrison. "Targeting the railways when our dedicated men and women are working 24/7 to recover from some of the harshest winter operating conditions ever seen, is not only ineffective but grossly unfair. "

CP also believes that the expansion of regulated interswitching could seriously impact Canada's competitiveness as it effectively transfers traffic that normally would move over Canadian railways and ports, to U.S. railroads and ports, potentially resulting in job losses, reduced investment and the dampening of the Canadian economy. Interswitching will also lead to double handling of grain shipments which will slow down the grain supply chain negatively impacting transit times.

The supply chain challenges with moving this exceptional crop need to be recognized. At close to 80 million metric tonnes (MMT), this crop is 27% above the previous 2008/2009 record and 37% above the 5-year average. While the production increase is dramatic, the scope of the supply chain challenge has been exacerbated by the fact that the increase is almost entirely for export, meaning there is more than 20 MMT additional volume to be moved over and above the 33 to 34 MMT exported in a typical year. This record grain crop is far beyond the overall grain supply chain's capacity in a single year and as a result will be moved over the remainder of this year and into next.

"Canada's grain handling system is just not built to handle this record amount of grain," said Harrison. "While it is easy to blame the railways for 'dropping the ball', it ignores the facts."

Rail is only one element of the supply chain and this year's challenges relate to all elements including farm storage, country elevator capacity, rail capacity, terminal capacity, overall port capacity and winter weather related challenges within the North American rail network.

To date, even with some of the harshest operating conditions we have ever seen, CP continues to move record amounts of grain. Obviously, this performance is dependent on all of the players in the supply chain performing in a way that maximizes all available capacity including full 24/7 operations, something CP is still not seeing in the supply chain on a consistent basis.

"We are very concerned about the speed and lack of consultation by the government in making such significant changes to the rail transportation system that could result in unintended consequences for all stakeholders," added Harrison. "We need to move away from reactionary legislative interventions that target unfairly one participant and potentially damage the Canadian economy. Instead we should all focus on commercial solutions to maximize overall capacity in the grain supply chain. This is especially important if these larger crops become the new normal as has been suggested. If this is true, a system grounded in commercial principles, not regulation, is required to address the capacity constraints and the significant investments required, including replacing Canada's aging grain hopper fleet."

Note on forward-looking information

This news release contains certain forward-looking information within the meaning of applicable securities laws relating, but not limited to, the entering into of the Plan, purchases of common shares for cancellation under CP's share repurchase program and future sources of capital. This forward-looking information also includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "should" or similar words suggesting future outcomes.

Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CP's forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in commodity prices; uncertainty surrounding timing and volumes of commodities being shipped via CP; inflation; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes as well as security threats and governmental response to them, and technological changes. The foregoing list of factors is not exhaustive.

These and other factors are detailed from time to time in reports filed by CP with securities regulators in Canada and the United States. Reference should be made to "Management's Discussion and Analysis" in CP's annual and interim reports, Annual Information Form and Form 40-F. Readers are cautioned not to place undue reliance on forward-looking information. Forward-looking information is based on current expectations, estimates and projections and it is possible that predictions, forecasts, projections, and other forms of forward-looking information will not be achieved by CP. Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.

About Canadian Pacific

Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway in Canada and the United States with direct links to eight major ports, including Vancouver and Montreal, providing North American customers a competitive rail service with access to key markets in every corner of the globe. CP is a low-cost provider that is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit www.cpr.ca to see the rail advantages of Canadian Pacific."​

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Daphne Bramham: Is Vancouver's Arbutus corridor worth $100 million?

Vancouver City and CPRailway $80 million apart in negotiations for sale of the 11-km long path

By Daphne Bramham, Vancouver Sun July 28, 2014

Daphne Bramham: Is Vancouver's Arbutus corridor worth $100 million?

A woman walks her dog along the Arbutus corridor near the 6th Avenue Community Garden. Canadian Pacific Railway is looking at bringing the tracks, dormant for more than a decade, back to life for the movement of freight.

Photograph by: ian smith , vancouver sun


VANCOUVER -- There’s no question that the hodgepodge of gardens along CP Rail’s Arbutus corridor are charming and no doubt that homeowners prefer gardens and a leafy walkway to trains.

But are Vancouverites willing to pay $100 million for it? Because that’s how much Canadian Pacific Railway wants for the 66-foot-wide right-of-way that runs for 11 kilometres from the Fraser River almost to False Creek.

Sources familiar with the negotiations confirmed that there is an $80-million gap between what the railway wants and what the city has offered. The vast discrepancy between how the railway and the city value the land is like chalk and cheese and reflects two completely different views of the land’s value.

It’s zoned as a transportation corridor, which is how the city reached its evaluation. It’s likely that the assessment took into account the fact that four years ago, the City of Richmond bought 14.5 acres of the old interurban line from CP Rail for $5 million.

But, because the Arbutus corridor cuts through some of the most expensive residential property in Canada, CP believes it’s worth five times more than what the city has offered to pay.





It’s been 13 years since the last train ran down the line. CP has been pretty patient. After all, hosting everything from gardens to used car dealerships for no benefit doesn’t exactly fit any corporate strategy, let alone that of a company with a CEO mandated to shed costs and wasted assets in its drive to maximize shareholder profits.

CP denies that the timing of the squatter gardener evictions on July 31 is anything but coincidental. But even if it is intentional, the railway deserves at least grudging credit for cleverness.

Three-and-a-half months before a civic election, how better to get politicians’ attention than to have citizens raising the stakes by confronting city council with a petition signed by more than 4,000 people and heartwarming videos and photos of straw-hatted mothers gardening with their daughters and retirees walking the tracks?

For politicians, it’s a bit of a nightmare.

Consider how generous taxpayers may feel toward one of the city’s wealthiest neighbourhoods, a community that already has more green space than most others and where, little more than a decade ago, resident Pamela Sauder declared herself and her neighbours to be Vancouver’s “crème de la crème.”

Consider that the Vision-dominated council’s top priority is ending homelessness. This year, it allocated $16.6 million in its capital budget toward that.

Do the arithmetic. Mayor Gregor Robertson and his colleagues are being asked to spend six times that amount to preserve the Arbutus corridor.

Homes for the homeless or parks for the privileged? That’s how any agreement would likely be spun by at least a couple of Vision’s competitors.

As for CP, images of the wanton destruction of vegetable patches just before harvest or trains navigating through posh neighbourhoods are unlikely to puncture the resolve of E. Hunter Harrison. He may not be meaner than a junkyard dog, but Harrison’s not a man to back away from a fight. He came out of retirement in 2012 to turn around the worst-performing railroad on the continent and maximizing full value of existing and anticipated surplus real estate holdings was among the goals he highlighted soon after his appointment


“When you go to a new location, in a railroad or whatever, you’ve got to find the meanest son of a bitch and whip his ass — you get a lot of attention,” Harrison told the Globe and Mail in April. He went on to say that where a big bully has always got his way, “you take care of the big bully and a lot of things come together.”

Since CP lost its court battle with the city to sell the Arbutus corridor a decade ago, it’s possible that Harrison sees Vancouver as a bully.

Under pressure, it’s not clear how much local politicians might be willing to spend in a neighbourhood where residents generally have more influence and are more inclined to vote than in others. Nor is it clear just how much taxpayers might be willing to pay or whether these privileged residents might ever willingly give up their free gardens, even for rapid-transit or bus lines.

In a utopian world, every neighbourhood would be spared the messy stuff of industry and urban life whether it’s freight trains, training trains or SkyTrains. But this is the real world where often it’s less about fairness and quality of life than it is about politics and money.

dbramham@vancouversun.com

Timeline:

1886 — Arbutus corridor given to the Canadian Pacific Railway by the province, just a few months before the City of Vancouver was incorporated.

1902 — Vancouver and Lulu Island Railway Company, a CP subsidiary, builds rail line from False Creek to Steveston.

1905-1950s — Electric locomotives shuttle freight along the corridor, while passengers were transported on interurban coaches.

July 1952 — Passenger service ends.

1995 — CP severs connection between Arbutus corridor and Science World by selling a single lot at 1500 W 2nd Ave., which becomes a Starbucks.

1999 — CP discontinues the railway apart from service to Molson brewery and starts working on plans for residential and commercial development and offers to sell the corridor.

2000 — City passes an Official Development Plan that restricts development on the corridor. CP sues city for limiting its use of the property to unprofitable rail service. The company claims the bylaw amounted to taking the property without compensation. Also, some Kerrisdale residents oppose use of corridor for rapid transit.

2001 — Last train runs.

2002 — B.C. Supreme Court judge rules the bylaw was not within the city’s powers. Separately, the B.C. Court of Appeal reverts northernmost 10 acres of the unused corridor to the Squamish Nation.

2004 — B.C. Court of Appeal overturns lower court decision, preserving the city’s bylaw.

2006 — Supreme Court of Canada unanimously rules that the city is within its rights to make decisions about land use and it does not need to compensate CP for any loss of value, real or perceived.

2007-2014 — Residents plant community gardens along the line and use the space for recreation and transportation.

May 2014 — CP sends letters to schools, residents and businesses along the corridor advising that since April its crews have been using brush cutters in preparation for a land survey and the running of trains along the 11 kilometres of track.

June 2014 — CP sends a notice to residents asking those with “any personal items, such as sheds or other structures, vehicles, storage containers and/or gardens, to please remove anything within the margins of CP land no later than July 31, 2014.”

July 31, 2014 — Deadline set by CP for gardeners and businesses using the Arbutus corridor to remove everything from the 66-foot-wide, right of way.

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E. Hunter Harrison to remain with Canadian Pacific until 2017

News May 7, 2014 /Calgary, AB

The Board of Directors for Canadian Pacific Railway Limited (TSX: CP) (NYSE: CP) today announced CP Chief Executive Officer E. Hunter Harrison has agreed to a contract extension with the railway for an additional year.

"When Hunter was brought in to lead the transformational change of this iconic company, the agreement was for four years, plus an option for an additional year," said CP Board of Directors Chairman, Gary Colter. "In seeing CP's rapid turnaround under Hunter's leadership, the Board was unanimous in wanting him to stay on until 2017 and we are extremely pleased he has accepted."

Harrison officially joined CP in June, 2012.

"I am honoured the Board of Directors asked me to remain in a leadership role for an extra year," said Harrison. "Even though CP has experienced phenomenal success in a short period of time, there remains a lot to accomplish over the next three years to grow this company even further with our customers and shareholders."

Colter added, "Hunter is arguably the most respected and successful leader in the rail industry and Canadian Pacific's evolution is stronger than ever with an outstanding senior leadership team and a railway operating model that will take CP to levels it has not achieved in its 133-year history."

Note on forward-looking information

This news release contains certain forward-looking information within the meaning of applicable securities laws relating, but not limited, to our operations, priorities and plans, anticipated financial performance, purchases of common shares for cancellation under CP's share repurchase program, future sources of capital, business prospects, planned capital expenditures, programs and strategies. This forward-looking information also includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as "financial expectations", "key assumptions", "anticipate", "believe", "expect", "plan", "will", "outlook", "should" or similar words suggesting future outcomes.

Undue reliance should not be placed on forward-looking information as actual results may differ materially from the forward-looking information. Forward-looking information is not a guarantee of future performance. By its nature, CP's forward-looking information involves numerous assumptions, inherent risks and uncertainties that could cause actual results to differ materially from the forward-looking information, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in commodity prices; uncertainty surrounding timing and volumes of commodities being shipped via CP; inflation; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments; and various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes as well as security threats and governmental response to them, and technological changes. The foregoing list of factors is not exhaustive.

These and other factors are detailed from time to time in reports filed by CP with securities regulators in Canada and the United States. Reference should be made to "Management's Discussion and Analysis" in CP's annual and interim reports, Annual Information Form and Form 40-F. Readers are cautioned not to place undue reliance on forward-looking information.

Forward-looking information is based on current expectations, estimates and projections and it is possible that predictions, forecasts, projections, and other forms of forward-looking information will not be achieved by CP. Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.

About Canadian Pacific

Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway in Canada and the United States with direct links to eight major ports, including Vancouver and Montreal, providing North American customers a competitive rail service with access to key markets in every corner of the globe. CP is a low-cost provider that is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of Canadian Pacific."​