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            july 20, 2019

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CP moves 1pc more Canadian grain in 2017-18 crop year to reach 25.8m tonnes


Canadian Pacific (CP) moved 25.8 million tonnes of western Canadian grain and grain products, soybeans and other crops during the 2017-2018 crop year, an increase of one per cent year on year, achieved by working closely with and listening to customers and supply chain partners, according to Shipping Gazette.
In its July 31 letter to Minister of Transport Marc Garneau, CP published a detailed plan to move this year's crop. CP is closely watching crop forecasts for the railway's service area and is in regular communication with customers and supply chain partners to validate forecasts for the upcoming crop size.
CP's current estimate of the western Canadian crop size, based on Statistics Canada data, is 70.8 million tonnes. When adding potential carry-in into the 2018/19 crop year production, the total crop to move is estimated to be 83.4 million tonnes, five per cent higher than the previous five-year average.
Based on current forecasts, CP's operating team plans to consistently spot 5,500 hopper cars for Canadian grain weekly through autumn, until the closure of the port of Thunder Bay on the St Lawrence Seaway. When the seaway closes, the company plans to supply 4,000 cars per week.
"CP has been moving grain for over a century and today, more than ever, we're focused on driving the future of grain transportation for the benefit of the entire supply chain," said CP's vice president sales and marketing Joan Hardy.
The company is undertaking a number of innovative steps to further improve the efficiency and capacity of the grain supply chain.
The highlights include plans to invest US$500 million in new high-capacity grain hoppers to replace the aging low-capacity government of Canada fleet. The new hoppers will efficiently carry up to 10 per cent more grain per car and the shorter design will allow five per cent more cars per train, resulting in 15 per cent more grain per train.
The railway will add 500 of these cars by the end of the calendar year and 1,000 by the end of the first quarter of 2019 as part of its plan to purchase 5,900 new hoppers over the next four years.
The development of the 8,500-foot train model continues in collaboration with customers that operate elevators and destination terminals handling the trains. These trains will be able to haul up to 20 per cent more grain per train than the current 7,000-foot model, and up to 44 per cent more grain per train when combined with new high-capacity hoppers.

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