Canadian Pacific (CP) has announced that it is ready to move this year's western Canadian grain crop, and is calling on all supply chain partners to work collaboratively to move the product to market. The 2016-2017 crop year is forecast to be significantly larger than the five-year average.
"To ensure success during this crop-year, the broader supply chain must work together to collectively harness our energy so that the entire Canadian economy can reap the maximum benefit," said E. Hunter Harrison, CP's chief executive officer. "We have been preparing for this crop year for months and we are ready."
The rail supply chain has returned to normal since the extraordinary crop of 2013-14, with CP moving record amounts of grain in the 2013-14, 2014-15 and 2015-16 crop-years. There is now excess capacity in the supply chain, including thousands of rail cars in storage ready to move the latest crop.
CP continues to make significant investments in its infrastructure to move grain more efficiently. Recent supply chain partners have also invested in infrastructure, especially in grain country elevator capacity and port capacity. These investments are critical to an efficient and reliable system that has the capacity to move Canada's grain crop each year.
In order for the system to move record volumes of grain, CP noted that it is essential that port terminals such as Vancouver operate on a 24/7 basis, remain fluid and that the seaway, especially the Port of Thunder Bay, be utilized to take pressure off Vancouver.
CP's development of its Dedicated Train Program (DTP) provides customers with a guaranteed amount of rail capacity to manage their supply chain. Shippers who do not qualify for the DTP, or choose not to sign up for the program, can order cars in the open distribution program. Open distribution allows shippers to input orders for four times the car spot capacity at each facility at one time. As orders are filled new orders can be placed.
Harrison added, "With innovative programs, a better-than-ever network, and a commitment to be the best we look forward to meeting the needs of our customers – we hope the rest of the supply chain is ready to do the same."
CP has also sent a letter to the federal ministers of transportation and agriculture outlining preparation for the crop year and calling for supply chain collaboration.
Grain is CP's largest line of business. Grain movement for the 2015-16 crop year was relatively flat compared to 2014-15, 4.7 percent higher than CP's three-year average and 11.6 percent above the railroads five-year average.