CP’s planned 2018 capital program sees bump over 2017
Written by Mischa Wanek-Libman, editorCanadian Pacific Railway will target a capital program between CA$1.35 billion (US$1.08 billion) and CA$1.5 billion (US$1.2 billion) in 2018.
At the low end, the capital plan reflects an eight percent increase over 2017’s targeted CA$1.25 billion (US$955 million) capital plan, while at the high end, it could represent a 20% increase over 2017 numbers.
Nadeem Velani, CP’s chief financial officer, said during the railroad’s 2017 Q4 earnings call that the wide range is due to the possibility of the Class 1 investing to upgrade its grain hopper fleet. The decision to upgrade the fleet rests on the outcome of Canada’s Transportation Modernization Act (Bill C-49), which is a proposal that, among other things, would change the Maximum Revenue Entitlement in a way that would promote hopper car investments.
Keith Creel, president and CEO, also took time during the call to mention the railroad’s improved safety statistics pointing to a 16 percent reduction in personal injuries and a 21 percent reduction in train accidents.
“On a full year basis, our train accidents frequency finished at an all time low, marking the 12th consecutive year CP has lead the industry in this key safety metric,” said Creel.