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Canadian Pacific Railway and CP Ships Secure Long-Term Agreement
| 15.11.01 Calgary, Canada & London, UK (15 November 2001) - Canadian Pacific Railway (NYSE/TSE:CP) and CP Ships have reached a long-term agreement that will see CPR continue as the shipping company's exclusive Montreal Gateway rail carrier well into the future. The two companies have extended their existing agreement, originally due to run until 2004, for another 10 years to 2014. The new agreement secures CPR's position as the leading rail service provider in the Port of Montreal, handling the majority of the port's containerized rail traffic. CPR and CP Ships had agreed in principle to the terms of the agreement before their recent spin-off from Canadian Pacific Limited. "This long-term partnership preserves CPR's strong and secure position in one of North America's busiest container ports," said Rob Ritchie, CPR's President and CEO. "Because of the success of our past association with CP Ships, we were able to reach an agreement that will support the continued growth and success of both companies. This long-term contract provides the stability we need for continued investment in infrastructure and capacity." "By guaranteeing the continuation of this strong and historic business relationship, CP Ships will be able to further develop its already-extensive Montreal Gateway intermodal network and secure its position as the North Atlantic market's leading carrier," commented Ray Miles, CEO of CP Ships. CPR operates 45 trains a week between the Port of Montreal and major centres in the northeastern and midwestern U.S., including Chicago, and central and western Canada. CP Ships traffic through the Port of Montreal consists mainly of import and export cargo moving between North America and North and Mediterranean Europe. CPR's Montreal-Chicago-Detroit corridor is part of the most direct route between Europe and the U.S. Midwest. More TransAtlantic container traffic moves through this corridor than any other rail-to-port routing in North America. -ends- |
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