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CP - Canadian Pacific Railway News Story

C$388.36 -3.2  -0.8%

Last Trade - 13/08/20

Sector
Industrials
Size
Large Cap
Market Cap £30.74bn
Enterprise Value £36.12bn
Revenue £4.57bn
Position in Universe 12th / 2676

Canadian grain exports flowing fast as pandemic lock-downs clear railway space

Wed 17th June, 2020 4:22pm
By Rod Nickel
    WINNIPEG, Manitoba, June 17 (Reuters) - Canadian grain
exporters are boosting sales in a slumping global economy, as
demand for commodities like oil weakens and frees up railway
space.
    Brisk crop movement in a country that relies heavily on rail
is a bright spot during pandemic lockdowns, which have hammered
most industries.
    "We've had an almost unlimited supply of rail cars and
power. We're shipping off the map," said John Heimbecker, chief
executive of grain handler Parrish & Heimbecker. 
    Canada exported a record 959,900 tonnes of wheat in the week
ended May 10, although year-to-date volumes from Aug. 1 are
behind. Canola exports are 8% ahead of the year-ago pace.
    Major exporters include Richardson International, Viterra
and Cargill  CARGIL.UL .
    In the 2019-20 crop year to date, shippers have unloaded
more than 19 million tonnes of grain at Vancouver, up 6% from
average, despite a disruptive rail strike and protests earlier,
according to Quorum Corp.
    Declining coal and crude volumes and Canadian National
Railway Co's  CNR.TO  recent purchases of locomotives and hopper
cars have driven up grain shipments, said Sean Finn, CN
executive vice president of corporate services.
    "We've been shipping grain like there's no tomorrow," he
said.
    Timely rail service is critical for farmers' cash flow, said
Bill Campbell, president of Keystone Agricultural Producers.
    "It has been a pleasant surprise for producers to haul all
their commodities when they want to."
    A tougher test will come in autumn and winter, when a new
harvest is ready and as other sectors may recover, said Wade
Sobkowich, executive director of Western Grain Elevator
Association.
    By then, Canadian Pacific Railway  CP.TO  will be running
additional high-volume grain trains to handle another big
potential harvest, as part of its long-term upgrades, said Joan
Hardy, CP's vice president of grain and fertilizer sales.
    "There's a great crop in the ground and our customers are
telling us conditions look really good," Hardy said. 

 (Reporting by Rod Nickel in Winnipeg, Manitoba; Editing by
Bernadette Baum)
 ((rod.nickel@tr.com; Twitter: @RodNickel_Rtrs;
1-204-230-6043;))
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