Canadian Pacific Railway Limited
) introduced faster and swifter intermodal rail connectivity
between Toronto and Calgary. With the new service, customers can
save 20 hours of travel time between the two locations compared
to previous schedules.
This step will highly benefit its customers as the 2,112-mile
rail track interlinking Toronto and Calgary can now be covered in
64 hours. Customers can thus reach their key markets in a shorter
Prior to this, Canadian Pacific trimmed its transit time from
Vancouver to Chicago and Vancouver to Toronto. These initiatives
led to enhanced asset utilization and an improved supply-chain
system, and in turn greater customer satisfaction.
We appreciate Canadian Pacific's focus on upgrading its network
capabilities through various measures including consolidating and
repairing facilities that will enable it to operate longer and
heavier trains as well as deliver on-time performance. The
company projected long-term investment of nearly C$2.3 billion
Over the coming months, Canadian Pacific is poised to remain
favorable owing to the strength in Industrial and Consumer
business units. Growth driven by demand in the oil and gas
market, mostly in the Bakken and Alberta oil sands transport
business, will help the company to register high revenue.
However, the uncertainty in the global economy poses a major
threat. Additionally, the weak outlook for the coal sector and
less of forest product shipments will likely offset the positive
trends in the housing and construction market. Apart from these,
labor issues, commodity risk related to purchases of diesel fuel,
competition from other Canadian and U.S. firms and currency
fluctuations weigh on the company's performance.
Canadian Pacific - which operates with the likes of
Canadian National Railway Company
Kansas City Southern
Union Pacific Corporation
) - has a Zacks Rank #3 (Hold rating).
CDN NATL RY CO (CNI): Free Stock Analysis
CDN PAC RLWY (CP): Free Stock Analysis Report
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UNION PAC CORP (UNP): Free Stock Analysis
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