6 July 2009
Rates Established for Westbound Coal Through End of Q1 2010
Calgary Alberta - Canadian Pacific Railway Limited
today announced the results of rate proceedings between CP and Teck Coal Ltd. (Teck) addressing rate levels for export traffic moving
between Teck's southern BC mines and Vancouver area ports. Contract terms are confidential and expire on 7 Apr 2010.
As part of the rate process, Teck also secured a rate for routing some of the existing export coal traffic via an interchange with
another railway at Kamloops, BC. Traffic moving over the Kamloops interchange will not exceed 3.5 million metric tons between now and
1 Mar 2010. For CP this represents approximately 15% of historic annual total Teck coal shipping volumes.
For the total book of business with Teck, CP expects to move 17.5 to 19.5 million metric tons based on the latest
publicly-available data from Teck. At the top of the volume range and at today's fuel prices, revenues would be
approximately $360M for the period 8 Apr 2009 to 7 Apr 2010.
"The new arrangements will trigger changes in our operation," said Kathryn McQuade, CP Executive Vice President and CFO.
"We will adjust our model, cost structure, and associated resources accordingly and continue to pursue all efforts to ensure this
is the most cost effective move possible and that we maintain an efficient supply chain."
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