Canadian Pacific boosts 2013 capex budget

Canadian Pacific yesterday announced plans to increase 2013 capital spending by an additional $75 million to $100 million. In December 2012, the Class I announced a 2013 capex budget of up to $1.1 billion.

The budget is increasing because certain capital spending projects originally targeted for 2014 will be advanced into 2013, funded by a higher-than-anticipated cash-flow projection for this year, CP officials said in a press release.

The projects include track upgrades on the North Main Line between Winnipeg, Manitoba, and Edmonton, Alberta; upgrades to signaling systems on a mainline between Moose Jaw, Saskatchewan, and Chicago; and acquisitions of core assets that otherwise would be leased.

"As our railway continues to transform, we see opportunities to accelerate enhancements to key sections of our North American system," said CP Chief Executive Officer E. Hunter Harrison. "By taking these opportunities now to further improve our operations, we will be better positioned to respond to our customers' shipping needs."