Steady as She Goes: In Uncertain Times, Canadian Pacific Remains Focused on Long-Term Strategies

This profile of Canadian Pacific Railway (CP) examines the line’s focus on long-term strategies in maintaining a steady pattern of growth and a history of being the only major Nothern American railroad (except for the Great Northern) to never undergo receivership or bankruptcy. An icon of Canadian transportation, it dates back 127 years. While there have not been any major acquisitions, the road operates its system of 14,000 miles of track according to a plan that optimizes every aspect of the organization. On October 27, it reported earnings that exceeded analysts’ expectations. But 2008 has been a challenging year, with severe flooding in the U.S. Midwest, and a cold and snowy winter all across Canada, in addition to the deteriorating economic climate. Getting the most out of existing assets and capital projects is the key to the CP formula. Additionally, diversification helps. While automotive and forest products have softened, steel remains fairly strong, thanks to demand from China. CP is succeeding by adding capacity without adding investment by making best use of its assets. “Clock-like” consistency is the approach, which is used in train priorities, planning, spacing, and staging. Trades crews are better coordinated, and engineering service work times are used more effectively. The result was a double-digit percentage increase in train speeds on grueling mountain crossings. In additional to faster trains, CP is making up longer trains. It is negotiating with workers to implement run-through and boosting tonnage. Additional programs involve switching gears and new track on existing lines. Finally, its acquisition of DM&E has been completed with a successful $1.75 billion debt offering.

• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/1586268
• Authors:
  • Gormick, Greg
• Publication Date: 2008-11

Language

• English

Media Info

• Media Type: Print
• Features: Photos;
• Pagination: pp 24-26, 28, 31-32
• Serial:
  • Railway Age
  • Volume: 209
  • Issue Number: 11
  • Publisher: Simmons-Boardman Publishing Corporation
  • ISSN: 0033-8826
  • Serial URL: http://www.railwayage.com

Subject/Index Terms

• TRT Terms: Freight traffic; Freight transportation; Railroads
• Identifier Terms: Canadian Pacific Railway Company
• Subject Areas: Administration and Management; Railroads;

Filing Info

• Accession Number: 01122804
• Record Type: Publication
• Source Agency: UC Berkeley Transportation Library
• Files: BTRIS, TRIS
• Created Date: Feb 27 2009 7:55AM