CP Rail to purchase 1,000 grain cars to bolster supply chain network
Canadian Pacific Railway (CP Rail) has revealed that it will be investing more than CAD$500,000 in new grain hopper rail cars in the aim of bolstering the country’s agricultural sector by upscaling the capacity its grain supply chain.
The company forecasts that 500 of these new cars, acquire from rail manufacturing company Hamilton, will be in service before the year’s end, whilst the next four years could see a total 5,900 new cars purchased in total to overhaul its existing rail fleet.
“We know farmers depend on us to transport their product efficiently, safely and reliably to market,” said CP Rail President and CEO Keith Creel.
“It's the largest sector of CP's business by revenue, and we're committed to continuous improvement for the benefit of our customers and the North American economy. These new railcars will revitalize our fleet and help cement our status as an industry leader in grain transportation for decades to come.”
The new cars will be lighter, shorter, and carry more grain than the existing models that are set to be retired from CP Rail’s fleet.
Further, the order comes as CP Rail is working on a new 8,500-foot-long power-on model for its grain trains in the aim of expanding its total car capacity from 112 to 147, enhancing the efficiency of transportation.
“With our growing network of facilities capable of handling 8,500-foot trains, this highly efficient hopper car capacity will benefit our supply chain and support the growth in volumes that we are pursuing in the competitive western Canadian marketplace,” said CEO of Paterson GlobalFoods.