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8/1/2023
Canadian Pacific Kansas City yesterday published its 2023-2024 Grain Service Outlook Report, which outlines the railroad’s plan to transport Canada’s grain crop for export to international markets.
The report is the first to include CPKC’s position in serving Canada’s agricultural sector via a single-line connection between Canada, the United States and Mexico.
The result of the merger between Canadian Pacific and Kansas City Southern, the new network will provide grain shippers access across the continent, including a number of new markets in Mexico and enhanced routing options for shipping grain and grain products overseas, CPKC officials said in a press release.
Morever, CPKC has invested more than $500 million to purchase 5,900 new higher capacity grain hopper cars.
CPKC officials say several factors are constraining or could constrain Canada’s export-driven grain supply chain, including:• the prolonged strike at port terminals in British Columbia, including the Port of Vancouver, which could impact grain transportation this fall as the supply chain recovery stretches into 2024;• the challenge of offloading grain onto vessels during periods of rain or snow in Vancouver;• low demand for Canadian grain transportation at certain times during the 2022-2023 crop year, and in particular throughout the spring period, that resulted in significant unused capacity on CPKC's rail network; and• certain Canadian government actions, such as a plan to introduce legislation that would prohibit replacement workers by 2023’s end and the decision to resurrect extended interswitching on the prairies.