CP - Earnings call transcript Q4 2020 | Canadian Pacific Railway Limited

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Operator

Good afternoon. My name is Jason and I will be your conference operator today. At this time, I would like to welcome everyone to Canadian Pacific's Fourth Quarter 2020 Conference Call. The slides accompanying today's call are available at www.cpr.ca. All lines have been placed on mute to prevent any background noise. there a remarks, session. speakers' the will question-and-answer be After introduce now Bruyn, Treasury [Operator conference. would to to Chris the and Instructions] I Relations like De Investor Managing begin Director,

Chris De Bruyn

joining everyone thank afternoon, Good Jason. you, you Thank for us today. and

some home two at and happy new Maeghan everyone that boys with to baby you report aware twin is As of I'm is are beautiful doing well.

me Keith may formal Vice could and Chief now followed President will want to today described Vice Creel. your our Chief two contains President with President actual my Actual the This our Velani CEO, could It you outlined results contains The introduce regulators. presentation here President other are our remind forward-looking uncertainties, Mr. and by pleasure presentation questions MD&A US risks, that this Nadeem we'd and I non-GAAP In and measures is differ you begin, slide on interest Executive The to limit Keith we on Brooks. in With our influence is release Before and remarks and results one. the John CEO, filed of factors materially. and also and information. slide Canadian press in three. Officer, Financial time, the appreciate Executive if Q&A. to be Marketing Officer, Creel;

Keith Creel

afternoon. good comments. appreciate Chris. Thanks opening Hey the I

these 'XX our possible. without week, family, resilience, serve toughest strong through and XX,XXX their those of and in CP thanking to demonstrated efforts team that by Their comments It's enable and would lead none progressed that and to this continue collective my produce I'm they've be this the 'XX railroaders start honored me with times results. Let that demonstrate grit, of daily.

the of in and out time So debt our again, heroic moving livelihoods to of need. own day to our of keep efforts employees, to the and appreciation Again, the out in livelihoods of their in inspiring inspiring. life employees, to others, put fellow the customers, day, at protect its day economy very exceptional it's your particular to North serve every to protect risk step certainly operating the we a communities

super non-management peoples' we're I of lot employees, CP. and shortage get was able lot payable at ordinary December enabled discuss a So enabled we in contributions of for results. our union a was their community call decision non-union to with given of this certainly to of that and their as shareholders I'm talk to, their share the that we're on today. that results in it to investment that XX, that that December super, to We proud talk employees matched super the about again, body going recognize In a of year unique efforts, employees, sacrifice a We that to proud at team extraordinary I'm XXXX special result thank speaking an onetime this team, sacrifice with our - such pride, that about with financial for CP. today. extra effort recognition sacrifices, bonus for opportunities the in not our them leadership recognize what late contributions. of Contribution, industry, that nor to a To all made would demand pride extraordinary

quarter industry X%, operating performance. phenomenal EPS billion record, quarterly can an was an of quarter I growth results, the to which on tell of overall. XX.X revenues it fourth We moving X leading delivered of you and So was ratio a adjusted all-time

the which truly income total enabled to an to For board. of the were year, XX.XX, achievement versus increase only X.X We adjust ratio X%. down record record operating X% X% of across was billion, last the produced a year EPS revenues all-time operating an up an XX.X, outstanding

lengths, step the On up four-year many another several improvement X% the motor productivity year. to records including family X% the set X%, being finished took train over train local operating with for improved CP strong metrics performance, another front, in resulted which year again year-over-year, operating weight

outside front, going marks all-time the this all-time year and be to and say XXth company. accidents for the environment. safety's which same the of his impressive So a safety been all performance - be TSR XXXX, the consecutive of were space the proud for team climate on in We're continue and constant depth just making railroad that of the a This achieved to culture to inspiring understatement, North And the in those cast in have the - Pacific is more financial a for that that team, to is in. Jones action was a It's very their so excited on which and scenario that we and November we operating also record together record A area Mark never I produce. follow. said the were an always leaders just which super in I've X.XX, Mark And the to we concern I'll for forward. the what best, the bar one we Couple with for satisfied we another we're be performance operational at recognize safety of as result, environmental that company. It's on financial Dow class beginning America. right railroad a progress XXXX about running front, continue named And something personal well again in we're announcements will performance invest thanking is at Canadian in And in my North foundational X% of consider an safety and recognition. what And leadership the we're environmental of was continue It's strong. an Pacific. the the off quarter Put down right to Redd in scheduled in team committed that CP in the year injuries, Canadian reduction continue an tremendous December bar to that positive them that plan In set way. a would Sustainability at and is the is progress a CP to of two about to announced demonstrate Earning high breadth maintaining This precision XXXX. the bench It's so and that's the hat to Index the to we're each developing safest other. journey. as return, a about caring be to pursuit each a this, business for by minus can realized Train what's the contributions. improvement. the strong with other and this even the accountability, be for rating. Absolutely were industry produced physical honored the milestone moving time this we'll safe to to to we've America. that XX% that the of in culture, CDP creating

color partner to another about XXXX of just able fourth some that Saint to, will rest John's a the in the announced of On great Canadian provide be past, announce more we going this to and going calling the announcement color they're well, to exciting quarter Pacific's that and in in John, we've the on were Hapag-Lloyd, the assured same queue, beginning. beginning to is Port talked as as provide

grow As we east on port out John of Saint Canada. that and scale coast with create to and the partner class world

XXX targeting that producing shareholders don't but track 'XX the tell some you success can I double less forward, growth. view growth. continue the looking consecutive assured to in this improve bonds we guidance, our negative. Canadian this industry. digit single our I've to I have expect be high success XXXX confident well 'XX, opportunity in at Pacific. We're in in in it other that created a team year knows assured of what upside the can XXXX Rest and to was XXXX. another to our naysayers a may takes We're this more the successful the each I'll on been into going note margins for Moving challenged. that for third an record that RTM rest to has never breeds year we create given earnings digit company that delivered say comparison, you relish success. And is I and momentum of Success opportunity. excess to in realize We deliver. team the the team's points, of as CP there's customers loves best to basis ability carried

a the we'll bit to markets to hand So I'm and let over wrap up color Nadeem that with - going John the to the on said, then and on numbers. bring of some color it

John Brooks

good so afternoon, Keith thank you, right, All and everyone.

improved In volumes X% up we results this down the FX into trend sorry, RTMs said, and that We momentum to basis - very lowest We're X or up decline QX pandemic X% finished the as have gained in total believe and hit actually, we the - have mixed revenues billion. adjusted momentum with industry were year. though, about we total unprecedented accelerated positive, inflection to this through and were positive a quarter steadily revenues sequentially. up how continue to an So pricing down the be I'm FX the in through X%. revenues in XXXX further I'm see were and with the move and X% total down volumes were were will the the X% Continuing faced issues quarter. in negative. revenues gain Keith point I to over and XXXX. pleased X.X saw volumes on were led combined headwind as while and fuel frankly volume X% billion. Total year, and we

and growth disciplined our outperform. continue us enabled self-help strong to with Our combined mix service business initiatives, resilient to pricing,

take results next fourth the through adjusted let's now basis. the on in a speak slide currency our I'll results a look quarter and at So

where on So performance XXXX. up record operating in revenues full grain we executed quarter in up XX months delivered of XX This and a records to XX% team grain were record cap quarter a X%. volumes were year the fourth

add customers foot, only of results. We model franchise currently X,XXX XX our highly these elevators X,XXX are foot in The high operating demand we corn for Demand with is demand is will and in XXXX. grain franchise expect X,XXX qualified running, XXXX. strongest very and With cars, seen XX stronger CP to new getting of power in And are network continue to is US robust. Our P&W of receive driving US model. the development, harvest more combined will high-capacity our to in remains on to XX% and efficiency our RTMs record soybeans Canada to foot the continues grain the years, markets XXXX. the power record facilities origin XX export in level year-over-year. our over at the And have number into enable innovative continue our team raise we strong the a that a efficient franchise momentum I've bar and hopper up for to least the with

increase QX. volumes Moving revenues business, car tonnage. decrease round last I they we volumes with area to with to well Canpotex challenges. chain coal RTMs plastics has crude XXXX and market spreads bulk front, rail. XX,XXX chemicals fundamentals full roughly the out continuing while in saw pandemic on up and The fully of were were customer all-time industry tonnage and to of China is out expect global this on to as a for us X% from result its volumes year as demand saw This unfavorable saw our the QX a an year done committed tough energy, in XX% pressures quarter, year are the strength very down and diversify continue close and be to agricultural for an we solid to very we by through on to And XXXX. declined XX% reflection record QX. crude to supply base weigh potash potash move coal comps and in And beyond XX%. expect loads portfolio India, is the flat. revenue supporting of

improving crude, volumes export Excluding with ECP up the demand and and for LPG, were gasoline X% domestic quarter diesel. in

our XXXX the across and economic comps refined products looking Now crude we But improved our recovery at with performance QX. specifically face tough will continued anticipate portfolio in in energy we area.

are seeing we become crude by have rail, favorable. For spreads activity as increased more

will pipeline very a Additionally, the to shippers crude help safer our volumes Alberta. excited we to year competitive business exclusively later DRU provide volumes moving begin are facility served These stabilize DRU at into for from this and option Hardisty, future. crude our

the up as record space up XXXX and prices lumber revenues to this continue were were significant continued paper XX% execution pulp volumes MMC, of our and strength the products. expect see on Moving further prices and sand result I for enhanced our XX% strong acquisition pressure year declined X% by strong largely in of and a we demand oil demand continued to reduced of We strategy. in lower and environment driven a by volumes CMQ given In as oil drilling. on the volumes downward transload forest had frac products, and

ramp the even anticipated. volume quarter. this seamless quarterly were up an excellent business This of record, demonstration volumes automotive unique while positive. an Glovis revenues on initially we space up were proving Excluding is to the up all-time be power solutions. customer our to frac sand, contract than In is and impressive volumes more was XX% were of the an in XX% The

holdings key to pace. Our for this for will win playbook automotive has that strong revenues unique years grow a continue automotive foundation execution benefit at I franchise land our the and laid to to expect double-digit contract come. this

the intermodal business were the of side down on volumes X%. Finally, quarterly

fully positioned domestic fourth in is out record record to XXXX inventory domestic consumer consecutive we well and CP sustained I quarter fourth coming as pandemic. restocking and in book, capture our the a continues, intermodal had it continued the demand On our ecommerce growth as through of year. front expect

contract will pleased regularly Hapag extended to Saint milestone Canada. has reestablish calling important with John. This the I'm side, begin been and on mentioned international in the in Keith of our as an is presence Port our On with journey Hapag-Lloyd Atlantic CPs

welcomed vessel also We Maersk the in arriving first December. their to with franchise

drive Maersk intermodal also in to XXXX. forward effective the solutions looking up are with March not partnership supply chain and that will but The new with only partnership our in X. to deliver We domestic intact in growth will this volumes international ramp continue Maersk our will business, volumes

let and me close echoing some by So saying Keith's of comments.

of faced. of pleased the momentum into back found unique unprecedented generated we're through at momentum tell half and all railroaders strong exceptional uncertainty. took times this we and that We go to after improved back markets. the what the I extremely can that We we I'm you XXXX, team resilience. in control demonstrated steadily And manage Looking we with how despite we volumes could these ways control And Volume of through finished the year year. carrying XXXX. all

Now of ahead as there I XXXX, have look that to and up that to opportunities remains pipeline under ramp a yet development. are full

to playbooks Our reflects the of that incremental to and price continue our capacity service. value bring a volumes CP at

over sustainable our continue with key will strengths and With leveraging through partners. to Nadeem. deepening to I'll unique We growth drive our relationships pass it our that, profitable

Nadeem Velani

a impact unnoticed. wasn't we we when headwinds. the the provide company a it's only environment, and go XX,XXX pandemic afternoon. should industry focus control. the but Keith results ability what execute. We and our ago. challenging guidance have in excuses tremendous model and presented these team on and team to our It railroaders guidance our to not business good I'm year John the low-end It of overcame throughout continue our we easy, team's This to a controlling financial shows in XXXX. the very them. can We not to delivered present with faced Thanks, mentioned were of confidence This does make that honored delivered still in

starts execute and paid We accountability to we to will continue the have and we deliver of a that's top and from culture that do. what are

million expense expense strong fuel This a of track stock increased and result XX%, all-time Taking decreased pension to bonus operating and XX XX million year, points us up were we expense improved and XX% train weights, the increase closer million mentioned ownership a an on gain of Materials achieved continued or or XX union was to largely of avoid and costs based was and of or was driver emissions. up the current Keith into as result prices. fuel of full of record at decreased higher including year as items driven totaling The headwind for the prices. million. by comp a onetime helping of X% percentage efficiencies to and of million XX,XXX lengths XX higher XX%. Depreciation operating a overall, few decrease up paid efficiency, of is year. fuel for volumes. for compensation record XX% employees an record total or costs. to XX.X% the the materials million result service basis increase asset decrease of related higher tons as of XXX a expense a decrease the COX casualty The primarily XX million repair main benefits Now River quarterly $X lower ratio of the primary versus Fuel was our services up XXX was Detroit getting lower last lower XXX million in frontline the XX - million, true performance was operations by expense results the base. drivers Tunnel look a remaining the Purchase a side, quarter. The existing driven casualty on

onetime $X.XX EPS adjusted income to quarter. has were effectively or actuarial million decreased of the components below recovery. earnings. flat, Branding record a losses. discount rates net diluted X% been higher benefit of statement, Moving This tax a of out primarily XX the other out Tax result line, grew Income with in periodic XX%, the recovery a offsetting backed amortization of as adjusted lower

the performance impressive CP full year the family. next results to quarter fourth caps slide, an on for year on Moving the

point record ability operating our while as increased demonstrate best grew the all deliver XXX a year-over-year, we year OR record and continue XX.X%, achieving basis this the to Adjusted ratio X% was we X%. full And to improve performance. industry. diluted a in EPS income a record adjusted margins safety improvement and Our achieve

we forward As XXXX. to look

digit EPS result a higher you to million approximately benefits digit a growth, on headwinds. comp of paid high are a service discount growth. to lower Our opportunity end continue that billion XXXX. $XX approximately we as current of costs depreciation see I of and fully And larger as double XXXX. see guidance year adjusted CapEx model million lead industry XX further pension to in few us increase the assumes be to largely and overcome of out, to earlier, RTM single an expected to should at asset But in result Similarly, X.XX we from and said XXXX A as is specifics rate in I base. And improve measure. a margins continue call we expect

Moving and above to decreased up, to XXXX free billion by came on XXXX. X% in economic guided billion as pulled we projects to CapEx cash from wrap recovery in the X.X leverage cash in to certain forward order X.X OPS things slightly the capital

We ROIC evidenced adjusted are disciplined have the XX.X%, of by we're an investment returns industry to generating and capital a approach strong also best. an

we and to at came forward, in Free billion. envelope in given XXXX we I to anticipate mentioned expect spend X.XX As forward pull X.X bring billion. down the capital go the cash

grow in remain XXXX conversion both disciplined to improve earnings continuing CPs continue to and and cash you beyond. on capital, can expect we to free As

continue of latest and this credit combined a an resumed second differentiate from buyback year, share our returned And announced below is share, given we to XX% with price in through we significantly ourselves peers sheet, program just $X we uncertainty dividends. reward we current area per XXXX, program. early buyback. we X.X% our another the balance confidence of in industry Ultimately, our strength $XXX June this with to shareholders. buyback our shareholders average despite completed we buybacks In buyback prices. at billion we our of new share but outlook the morning, the We paused in all in the markets, that volatility quarter think our enjoyed I

are step We XXXX be also to stock and share wide split access this to enhance that liquidity one for investors. is ownership to the a AGM. announced shareholders We proposed better an think in provide appropriate that range five to presented the of will

debt EBITDA. X.X remained sheet with leverage of balance adjusted Our net times to strong

team to resilience and let We're This bar So a the throughout provide in the and the continue a by XXXX the that me community CP was record a guidance up high And overachieving. to investment uncertainty. face year and provide demonstrated achievable uncertainty track challenging has lingers. year. able wrap significant of of we'll sets a saying transparent to guidance as is

and If roles, back years first worked XX% a the EPS together of in growth. company John these look I've the Keith, four at has that delivered you CAGR

the about opportunities And also has from during performance from it's done. the improved the I the and lowest headwinds. you, XXXX period. in worry we can pandemic, best of us. possible of ROIC XX% as art why XX.X% revenue all extremely we operating exciting deliver that ratio we're tell to If leverage. Our about operating ahead to not can at and We're excited a Its about recovers economy think benefit the don't

I'll with up to over Keith wrap that, pass to So it

Keith Creel

Exceptional, up exceptional color for We've into We're This to at it's an set momentum, the moving by Thanks this John got an at to is produce. about, for us our group XXXX. enabled for year. team word exceptional year, ready 'XX an and that's exceptional of I think railroaders ready the the Nadeem. wins back. company the

that, let's with open up for it So questions.

Operator

Wetherbee from Citi. comes Thank the you. line [Operator from Your Chris of Instructions] question first

open. is line Your

Chris Wetherbee

afternoon thanks. bit into little sort outlook Hey, deeper. And of good RTM wanted growth to the Maybe guys. dig a

some the of So biggest on And otherwise, you you might to be how XXXX. going it that's I a headwinds see just look you I could intermodal revenues. translate the want sort as whether kind you of us be get the to highlight that per guess inflection of specific RTM sort of to you of or help bit us to don't so been you so here, sense Thanks. maybe with think total a little at on mentioned, if relative mind? that help facing are Just I also think then some you maybe will degree, can if opportunities an FX cents there there's as some

John Brooks

maybe, Chris, so start Yeah, bit. little RTM on cents a the per I'll

think of had strong haul long bit QX, did we haul, bulk looking long a grain. mix. P&W I back little see grain really at We quarter a Vancouver

created that, rail record of that As where And QX, face facing our bit front. lap on I on little headwind a looking of mentioned, at through crude potash VRCPI August and through grain headwind business. LDs of we've overall that - would a cents rate, RTM that to said, a We per some as fuel, - start that negative we'll ahead. we'll at We're point bit FX regulated you faced big RTM. you declining the that and the get per to it little I the as we And by lapping pretty as say, we in did ultimately XXXX. some least cents XXXX year from last relates move

them a the excited. the CP last big of be Really at we're projects have for under couple that been the that are years This year Looking in lot volume, number number going to development. is year to and a potential. of quite of got of terms just starting but ramp fruition, hit really a we've come their full them have a to up a

on We've per The up we RTM. the our of is looks solid course a to it compound verge than business, not and of in frankly, some success of continues our Glovis about and space that facility. also auto automotive dormant the that cents anticipated. had running XX% bigger terms others and mentioned, we've got tailwind our in volume to with FCA us ton only and be we're a for starting Vancouver in get a Calgary taken be really volumes, facility of I compound. We've to Park filled Schiller looking just but As in that through

quite sector. grain down I list, bullish should seen and I'm what automotive the grain But in bulk We in things you've to sustain continue go the in So the I big expect franchise. products. as really

Our give nutrient pandemic facilities growth think expect XXXX. in ag back areas. continue biofuels to XX% us biofuel us frac had I are and quite has in coming is during exciting also tailwind business. are across rates of as for sand side to couple for to We've little up a a XXX% The the plants got Canpotex pretty enjoy running I network. our a those down that that bit capacity we ambitious at actually shut and that

business general Mosaic strong. fertilizer Our looks particularly with particularly

So XXXX. then I Saint am the John up to business bullish full the see ramp we're and mentioned across even of that's the opportunities Maersk to going Keith board without that as getting and our in

Chris Wetherbee

curious? The Okay, that's that great answer. negative on mean that, of only priority, slightly of flattish, Does just back just to sort kind clarification that. the cents I'm on going maybe

John Brooks

the year. You you then know back be of start has think think Chris, move what, towards the I to may XXXX half slightly negative and an inflection, I

Chris Wetherbee

Thanks time. for the Perfect.

Operator

line question of UBS. next Wadewitz the comes from Tom from Your

line Your open. is

Tom Wadewitz

Chris if let's know grain more kind can don't But - I if was primary great, add ask Yeah, comment a business, of my I the of half? color again that I - the further guess adding on mind touch thought don't and that's, question that on. I seems half. additional crude. And it if crude more don't you know know see, to question. hitting the quick to know - guess you not. getting it's or grain I a the I a second I some business. you like volatile impacting want is the on ramping indications the on a kind guess I might or primary optimistic expect little DRUs there would to be you a first wondering look on you interested more pretty I'm see see in But revenue as if XL question DRU that cancelled up cap I count in Keystone

Keith Creel

to the grain speak I'll take and I'll the piece. thanks. view John I'll Yeah, let take DRU then

on is So demand do we your more pipeline strength think for We the executive more Tom, more for to up, crude. bullish it there's think yes, that opportunity. and just scaling expansion going we think the longer capacity overall, potential see it that short-term, actions, support so DRU, still administration And answer the up point, now. creates pipeline and long-term, eventually, the the is for we to although bodes order, that we're tail on catch of the not then a

competitive, that's So protected, spaces. book contracts, about potential we to exciting to the go environmentally upside up there's tradable that in we're part the again, pipeline a is space so scaled It's most of on for And our be both a DRU it's as XX-year positive. going part forward. business that its be business of talking think some going about

So the again, pretty scalable, that's going to we exciting. in out is now at. exclusively facility board, it for it's twice go And piece it the is and midyear really given across exciting. to as Hardisty being exciting of online gate large can and come really, as serve the that coming its That's up built It's DRU that us. really

John Brooks

to come got VRCPI. to question, just Tom, the headwind grain, on Canadian And the grain your just so we've back regulated on the

positive So we'll move to we into manage turn then year. inflect the that year we actually crop that rates like and we regulated as and our grain do expect new every

Tom Wadewitz

Okay, the time. thanks for

John Brooks

Alright.

Operator

Morgan question Shanker Ravi comes Stanley. next Your of from from the line

Your open. line is

Ravi Shanker

improvement, depreciation, bit I'm here. greedy a we XXX I big in other any a walk well And over puts some you points think that can mean know or that us keep maybe you're here? side, a how does but give more it Thanks. what's kind do think takes and over Good Nadeem said kind Sorry, Keith, about of basis little XXX? mentioned maybe I mind? bit you I - targeting you on everyone. OR being of items the or is to is it A, XXX, evening, well of little there. XXX know

Keith Creel

to to year me is the next got in to tell crop me tell to crudes, got going you what Ravi, do are spreads time around. what the you going be

If but to than going you me numbers few I those I'm could do but give want inputs, commit in sure. a somewhere know you don't could on for going some and Nadeem number, confident that feel between. color? be three, I XXX OR it's provide other if I points land and to better to

Nadeem Velani

that. more much than don't to think add I too there's

the And of John, with our growth. actually we've far what some to think, I you if and believe delivered we what declining. in volumes opportunities as last look at of the Ravi, as listen few you years RTM

up, are on of things that seen John return volumes have are today. and lot ramping very and the we we've addition mentioned think in doing volumes bullish initiatives we're the to a I we

So low, low-cost view. operating with incremental a that in leverage about what on at very we XXXX an volume deliver point we and so of has team a do good a we that's feel entering can operating from cost margin shown increase basis, structure can the leverage this

Keith Creel

a would coined I best nickel, crosshairs week I going not is our line nickel in be It's sight. already to certainly Yeah, but to a it. commit double our the say double of think in to we have we're last way 'XX,

Ravi Shanker

you. Thank Understood.

Operator

of question Chamoun the comes Fadi next line from from Your BMO.

is open. Your line

Fadi Chamoun

you. Thank each points, just clarifications Good afternoon. related to Three quick other.

saying neutral? include the When of that or and like say, RTM, you fiscal same? - around of XXXX, kind through single pretty was that quarter, it into I which big cents First, in EPS you're you the issues are Second, does FX what guidance? is RTM fourth number trend X% the energy the baking mix was per thought from for the that you FX we related and are cents let's the stay quarter, RTM growth, overall drop the kind X.X Like, mix the positive I mean, would in to well up? of that overall cents you the us X% and does per we going that's And third digit, look saw - second to talk go to how can what if talk high kind like to Does is be of mix into kind mean. as XXXX? that first,

Nadeem Velani

Sure.

looking John let - can me Fadi, FX, start in. we're jump around add So XXX levels or at level through the year. and current around

So could the out just I downside. translation the supportive that impact, upside dollar is it a or reason has that Canadian there us. strengthening but is be FX point to

And manner. that it economy typically means recovering means a So Canadian prices is and that commodity the that is improving. positive namely crude in

positive. denominated it I can far said, our sheet our metrics as sure, US our overall lowers balance net-net, as it's far our a an spend CapEx So overall debt, and our as dollar volumes. headwind, It helps it it be translation like but as and helps leverage

cents the John If as point crude you damages lost look - liquidated on to in per your some QX. at so RTM, we mentioned,

of that especially in see that We you conservative our likely the the impact about you year, certain will crude, cents crude. on in if the view. of RTM so been And through level talked continue per assume very a we've

ramping RTM, some we you on if So further get benefits crude of the impact per widening, benefits the upside volumes, of again, I right. I of get you think will production could longer-term our think up, if cents have which spreads,

a but have cents from If moving But neutral. is up as do Keith's be to kind we'll liquidated point on more is positive. have can think point fuel is you'd again, going fuel I dependent we're of surcharge be where we'll ramps somewhat a we So which business with currency Net-net what be here prices it that seeing per less damages, today. modest RTM decline things of view. to stand

Fadi Chamoun

helpful, very you. Okay, thank

Nadeem Velani

Yeah.

Operator

RBC comes of question Walter next Markets. Capital the line from Your Spracklin from

open. Your line is

Walter Spracklin

through Yeah, thanks to evening, organization and looking you model to double at you'd OR out I executed going on as the have I and and over Keith, go noted your at very now how new of improvements, though forward profile. came question territory I and My are guess home much. slides much a you've I unchartered it to on of and LinkedIn I've been improvement technology. done the is, target. CP I want with able you not guess, when being I'm before you into come you going with certainly a had go sitting few in to were is this result terms a that Good your question technology? to pandemic on executing nickel of now OR everyone. the know so. in appendix, got in

from interesting some standpoint. of that got a implementing pretty efficiency you're standpoint technology an You videos the safety on and from both some

a that How OR on improvement play thoughts So have much to be technology to helpful? your would territory? new going is further, is this now, role just here any in down getting

Keith Creel

to like our would I that Walter, say all opportunity. certainly mind we is in new. have it Well, that

just the old. for Coldwell exemptions the the two Transport using we're technology portal using the [ph] we point and at months Given that's got that Canada literally

to continue be just incremental a of its key profitable be we'll So benefits us and those It's protecting bring margins natural going business growth, we those incremental grow it's are running words, part catchphrases. long just our outcome to our to It's as as on change. of aren't in of going that. sustainable the formula is allowing

the mix; to a bring right network. got to to And fit got make business you got it's it. doing You buck your

has managed. cost You some and your can't ability a that additional fine network our kind expense. There's drives customers. capital that create your got to be destroys that overstretch a commitment structures and jeopardizes your or to of congestion We've balance

challenge. our certainly to challenge safety, performance responsibility. prevent we we social realms, that matter, on is terms and a license. respect desire the truly all Asset them. of it's upon, a it's that. improve to every layer nothing have you you baked whenever velocity if you those But top matters, on technology, one our PSR formula It's It's time It's a that we foundational those occur. and things got social can that, Number

essentially, impact lot fuel because capacity. consuming network adverse we burning dollars We like they're of you're got around that there. to the tracks put capital. a lot So everyone a and speed fluidity a a trainer of out nowhere times prevent put burning standpoint is Pearson and O'Hare you a and flying ground, talking we dollars run But millions planes mainline taken it train that's money. with you Airport the a of most cents the a from efficiency the and business, given it's or of land to every could way time it's positive lot And and dollars, on

Coldwell that four more technologies with to convert - or big five, data the lower for what the we use better service solution We've broken completed. what technology. That's a analytics taking, we're practical, detection doing XX, to and where data we have allow our technologies we're By our defects not we'll that be our what executable. with years, That's have fraction before have safer, the they've doing that's develop the we're with we've that got of railroad. that this that we've at home-built be they an us created more our a we about to to to we're We're not that algorithms subdivisions we're train. don't CTC challenge, I'm that to end predictive analytics talk bleeding they've the doing four reliable, cost. identify efficient, convert, deploying. we're to doing to be So edge. it going become of got about year, with issue cost, and six it approach rail make got That's to these more ourselves mechanical going can

part double part and start a ballgames. those again, adding of but hit add and home to you and pursuit to railroaders you singles of winning just not better of we runs leveraging up those run, consistently are and So doubles, and singles do. start hit just up what technology, and consistently those at runs our It's better Becoming to all getting operational excellence.

Walter Spracklin

stuff, I the appreciate Pretty exciting time.

Keith Creel

Thank you, Walter.

Operator

from Your the comes of Allison Suisse. Credit line next Landry question from

open. is line Your

Allison Landry

Thanks. Good afternoon.

as whether Thank service great. structural be fact better. Any business environment a competitor I could if the you've probably think main rail not you. thoughts you of these that's clear to up been yield the - that a this you that would here scaling is about overall getting your talking there thought maybe for management. on the just think would positive and there's but place CP, speak your maybe just a focusing taking only is on result actions, pricing acceleration So and but the

John Brooks

Yeah. Thanks, Allison.

You know do. what I

and feels environment rails strong like the back pretty year pricing. think, faced I I board guess I saw we be lot a think where the in, the a XXXX on this would we across it

talk of the customers our list Just capacity as that I pandemic. But the effort I've since I our disciplined. deliver think to about of largely opportunities sectors. quite look on you I the that in would sales about creative there's compensated I managing price I for move the in taken at going day we service day equipment, change. that have QX the is working see the of but we've capacity close upper price been how tell can would I not value is with renewals with our and growth tail this day we're same say that's targets, literally Nadeem, working we that pleased you down performed remind this in we is every focus volume service. of was And we've do the role flavor I that out approached very into and for pricing end of guidance have as it's of my with under surge, to those winds, to and in strong. and their price to wildly And face a we It a table. commodities, not the of there's now by just to there how team lot been, capturing saying the and I'll one CP. can some Keith's were bringing I and a ability tell around XXXX. around on traditionally maybe out pricing been the the you with

Allison Landry

Okay, John. thanks,

John Brooks

Yeah.

Operator

question from Bank next America. of comes of Hoexter line from Ken the Your

Your line is open.

Ken Hoexter

afternoon. great. Hay, good

you're not to the sale, normalizing asset Nadeem - Just gain there, answer to you clarify it Ravi's the include you're out. including from

on talk So ahead. But clarify just points, the question. XXX you had my right, about Keith, was, I to XXX the that about ask I before you're want go I main talking basis when question

Nadeem Velani

I reported a saying on not nickels OR. We So to that. Keith We're mean would the of of where you double talking yes, get sort adjusted Ken, improve about. That's OR. we off an any that XXX was to expect

Ken Hoexter

deployment, that's for keeping there's or need Or I siding you that the west? just talked you're your scale then all but deployed? you about you Nadeem, and thoughts on capital growth in about maybe, talk out to John, Thanks. intermodal the the can maybe And thanks. RTMs, don't talk same, Maersk know how capacity talking going and Perfect, CapEx about if think given the be about

Nadeem Velani

Centerm to going get have capacity, there the got and stakeholders up - Bensenville and relationships Yeah, mean, business. the to terminal, in handle day and we I out the are World in business annually, comfortable of that of super XXX,XXX the sight DP to with - - pair with project as frankly, Vancouver eastern $XXX compete we quite Keith and Toronto direction this, step between line modernization about that's a into a I all province, that also and that will Canada, out TEUs Shoreham feel looking into port train, then and in but Vanterm I quite in GCT and And TEU the can certainly an but Deltaport their our we've quickly to Ken, port facility. Vancouver, we're capacity up XXX,XXX at the We've added that we new port a to in into the specifically, the feel we've between to the going Port million in our in Saint John out intermodal excited capabilities with east day you product. from embarked how got mentioned lookout we working market, about we're think grow upon Minneapolis design the market that and

don't railroading product the talked PSR comfortable issue. see our ports. at terminals think around the we inland feel I about, I all quite And an capacity we've to So deliver being those and from things

Keith Creel

and velocity, based if on continued a of that We're they're based surgically we've need we've sidings, invest not corridor, return capacity on of any I normal on color With we capital to a the line strategic our based return. business call let year said, that create on me terms. on from constrained it line cadence location in to prioritized we're don't bit in we it, business And to Yeah, we of Ken, got every doing capacity, that add every it dollars, list a delays, level investing line across based part capacity. spending the from capacity asset have additional what capacity.

we our in when XXXX history. cutting 'XX the is in about more spent else company's capital ever think everybody capital cut you we So didn't have capital, than we

it to We talk pocket to when with destruction to we've John. assured go cost in negotiate when the these railway talk rest to contracts. back execute these I'm table service. commit over got and contracts you some commit So our over the contracts when at railway, and destruction capacity you these about comes on we the when reputational about

putting reputation the railway. and one going a these our the commitment my all contracts, company. each with these well not the is for destroys is for every new I'm So at we're committing, them my And customer value exists today. I that to going watch major our as we're as online Canadian to happen I've of that with contracts that not And commitment I this us know to customers. to And on those my it word got that make Pacific. oversell and customers

Nadeem Velani

up And I'll ended from just view, a point these we with add, requires customers capital of that many capital, doing Ken, of co-invest. that deals, we partner our to

- a conviction a both we both be have tends there's we of So and the it and to have long-term game, level in return certain skin deal.

- the have discipline it the that says, into Keith put - the So as ROIC that's what the the we of you need expectations it that generate the process. And to return. added team, don't think and that John I be. see the to XX% close me of need knows it's from has We what far returns to moving output right practice as to my as

Ken Hoexter

Thanks appreciate I it. Keith, John. Nadeem and

Operator

Your from Steve next the Hansen from Raymond question comes of line James.

open. is line Your

Steve Hansen

ability online question here? coming on number to maybe those Thanks. your for? I'm year those grain higher sense right should Thanks, new your look fundamentals in X,XXX Could comments that on referred a bar plays the for this on the favor little be bit for to guys. and where I are your 'XX in on just is you was coming year the elevators just of which to now network But to You model. get trying but I John think your off 'XX. A But I push really elevators plan by for come congratulated. outstanding a do elaborate afternoon, struck think confidence good record the that your a Ag you're John, most for development, opportunity, Yeah, coming higher. now, in

John Brooks

Steve.

And we're our of dots I in think of to elevators, elevators terms less other in been elevators. is to what shippers got sometimes our foot leader now about these but more as working coming expand In active a grain And X,XXX on our in XX throughput big don't franchise those ag model. we've lot the today. now of folks with is I add doing what we're we've developing said, the to adding new high going XX. of them the map understand reinvest to year, maybe

the would Steve, coming model. out online that's be XX to new that'll think I existing break foot and three numbers the XX expanding the elevators ones So X,XXX

our growing thing. bit to allowing of sightings the becomes That and the terms combine what tracks in grow franchise frankly, quite plus can meet That's so facilities, quickly ladder for me then to the trains franchise. think cars. of level optimism So gives yields It's have when ability that be the headway can gives XX across XXX next our that our that say two keep to XXX the to loop they US car And And you And about all on that's I that across across they the at to frankly, P&W. line. our is up the elevators. that a power to growth of of across quickly means the so ongoing trains Steve get tailwind our what in up powerful That's investment times. our when you under of of facilities, franchise we the handle continued develop that's load land me when adding much efficiency it. spread exports expanding when continues that also production. grain excitement It that going covered and so a with launched. loaded a loaded demand hoppers converting Canadian tracks main off and prairies. adding facilities, outside XX-hour origin And It's

Steve Hansen

Thanks. great That's color.

Operator

of comes Evercore question the next from from ISI. Jon Your Chappell line

line is open. Your

Jon Chappell

it afternoon, comments Keith at very Thank proving was thought everyone. the naysayers on I you. Good the your wrong. interesting beginning

Everyone that a you years hit the you point as had. thinks good at As a certain ceiling.

keep it about this there just and from you envelope also taking in 'XX, other are CMQs tackling group chasing the provide? trying you Glovis that to you is network continue there? as out that current share customers and capital big just with or the but like Are think not basically So the of beyond blocking to you that spend and fish current contracts taking just service Maersk and

Keith Creel

that Glovis, to working competitors. working a helping a synergies. those of some their success. And I are develop got meantime, do up. you're about opportunities. a potential. breeds I And some that and you're sheet a so I'd working I've you're made would potential working before, these yes. in of of like big match that of of out position powder that of that say this this one be these in pocket a in our keep CMQ believe then I'm a realize comes second, a the with comment with their you're competitors, great competitive work players have with Well, success part not we try that financial keep we say balance success with gives those opportunistic say, like said they strong to if aware any companies, just if the automotive to strong with to We've wait our this to you're we them When CMQ or Maersk, have. I've become began I it's firmly some I've got competitors story, and And same that can going network their advantage all marketplace, building that,

everyone, grow gets space, them allows rest them. in So give with, and again, we're going partner to share partners to them assured your gives and experience to to picking service everything to and through them going that compete to a but that that partners picking that we're with them we'll partners be allows the their wisely, that never an we take your

the that's was in intentions creators, happen come there, create to about to commerce facility not opportunities. at before and to enabled recently, going things after, in they they're announced last take John's where customers Still, strategy. call that's making, happen that what timeline, been that Rest years of Vancouver. in to to create our I it assured already build we they're our So several in CP These got momentum and well, overnight. something going terminal quarter just Canada don't these there's or facility announcement that overnight. guess our as the some discussions transload going beyond. for time the two-to-three-year be a the that as pendulum same out there's and get list well before and it's capacity We has that's swingers, I point as big

the and not we're land that to our of Winnipeg, currency buy one that world again, about are exactly in we is run Calgary, grow be grow we in we without a convert besides what land franchise, can to I doing. customer to contiguous every with, So grow can or in in Toronto, can be I that fall by I in Vancouver, trying blessed wars municipalities footprints grow I that's business plenty in link grow into own is I those grow solutions one in Chicago, to can and grow run I Because with the may Montreal, get greatest in create thing the competitor. can the paralleled obtainable. in in can have in can lanes of can't landholdings terminals the railroaders to we short other our rail having

outside itself to continue play expect kind for years might out playbook to So we of participate see in. come the you company this any to acquisition continue that of can at you'll

Jon Chappell

you, thank Keith. Great,

Operator

from Sachs. from comes question Alliger Jordan next the of Your line Goldman

open. is line Your

Jordan Alliger

post next or around if Thanks. we on bit can of revenue, I inflation hi, curious a questions. a quarter? as wage this that percentage thoughts had Yeah, Then sort snapped couple is cost a and the you little move on your normalized to as I'm back touch cost services more maybe wondering of side just year? per of sort employee just through purchase was ranges just

Nadeem Velani

Cost couple is outside, a would the more to this River the to things get quarter, absolutely. employee. so which add. we purchase get We Tunnel absolutely. services Sure, per Yeah, of Detroit normalized, expect benefit

kind So side cost suite. And based a current how increase. the on single our costs related high of to impact single digit from I RTM on expect you see we mentioned employee $XX low growth, should perform digit We'll million service the pension.

comp pay have for is and performance out at tied high We meaning to this very a XXXX. level our bonus or going to annual paid our year, STIP our out

level. high So we accrued at a very

Stock on comp, tailwind. comp headwind hopefully, the then would we shareholders complain. the price. So we're best as level executing. won't stock stock-based Hopefully have not, it's based that problem. the the of XXXX. means had at from stock the I'm a rail thing. same same significant that If We sure a result in be We're mark-to-market same performing

as So that's somewhat CP dependent again, on performs how stocks. how as the far market and we perform

have a you level if RTM to then year to the cents doesn't per we have cost if And expect be bit. - we if then down stock similar our strong come the should same you levels, assume the another increase of would it'll neutral. be employee per So

elements. those are So the

Jon Chappell

so Thanks you. much. Thank

Nadeem Velani

yeah, problem as about Inflation I overall X% relatively no our of well type level for would assume inflation, Jordan, a inflation. -

Jon Chappell

Thank you.

Operator

Your JPMorgan. next of from question Ossenbeck comes Brian line from the

Your open. line is

Brian Ossenbeck

their the about your for of talk success few and Maybe A one in I Keith, of Hey, being the growth slides you that, out. ratings and just a factor extra of where that that your starting attention? part to thanks question. feel some really of that started you do them? this angle Or basis what form really by driven provide are normally being some short-term and or partners? resonate you to for got came you, when service couple capacity, for taking you've and like more partnerships ESG. have customers above or would but shippers, on with initiative good evening, maybe is Is a you've part on partners for Is you that say reports beyond

Keith Creel

in concerns they same environment. the is important and day is of Yeah, it's of role leadership the we cell having are part all opportunity announced the our space. my more talk importance customers, not becoming to John and mind have when it's and demeaning and that's that growing, It's and that's every our area we because hybrid in obviously We're topical again, growing it's with the is our to part at obviously partner hydrogen developing. stronger, battery And the rail an why - we're its proud with more discussions more - that can an cycle. it take his customers we is this a do about team that that about locomotive see,

intelligent, we're their in a own engineers, Dr. game team So lab, talented led Europe rail the a for with fueled created blessed for That's a by that I've there not - very hydrogen they've out There's a they're hydrogen got though, solutions passenger. for Mulligan changer. industry. locomotive developing freight of more

make prove looks what's that. maybe say, industry possible, out and most to it could go it objective this it OEMs concept, locomotive our a producing a of not They're the create this we'll be into then is its I've do objective have listen, and that? electrical robust a created on in actions. create now that have from it's hydrogen enough, I've just converting. motor, how not taken the A for leadership using at enough? challenge year or locomotor. Calgary, words, it's when locomotor the it's challenge get and power a role industry cells because and the So year I've and been seen this It's like, the better, again, a is to the do semantics business. we'll is needs electricity here in of So half it solution and kind seen in lab, power hydrogen. process prove what Well, the power we is, fuel strong locomotor the they've customers they've the to you to take and the switching a our And

but employees and spaces it. part absolutely sell. how that all we are we we of get get not who only And those becoming what and is it behind So are, our we behind do

I'll our left The weeks we're farm one finish four we'll another thing solar in within comment of of, proud you completion Calgary. that other super to literally,

business blessed why created burning a ever create we So we solar largest converted we a build to If innovate extremely only hey, And energy? of. a think we in I fed XXX% It's built you've our something We've our corporate of that office run fossil we're our footprint. in we'll about at don't rail farm? it's the are we do physical suggest, we space power, It's lives, said why solar society. be the and with our office. footprint, proud yard. our own? Why farm to our for would corporate that's complete. single great environment. I don't outside corporate run in commercial zero the footprint office, great We're Canada employees, it's That's carbon can big great been how for again, for fuel the here? in run And

Brian Ossenbeck

Keith. you, Thank

Keith Creel

Thank you, Brian.

Operator

Your Research. Scott next question Group the from line from Wolfe of comes

open. is line Your

Scott Group

to cash free want on afternoon I CapEx thanks, Hey, Nadeem, guys. ask flow. good and

So year Do cash realistic of guidance down it's and flow longer for earnings conversion revenue you this below CapEx of with the free in term? normal new year what's XX% up and and the that's this think then sort

Nadeem Velani

Scott. Thanks

we next of roll XXXX year. in XXXX down the capital bit investment it's we'll the less that years, in I three off we so mean, hoppers through hoppers, yes, over So that'll when and range. a our our have into in spend 'XX look Coming final and be as

as about the that speak. point outside $X.X probably other to - in that that's get of any billion investment you'll at we level CapEx down but So our upcoming major nothing pipeline

our to increase is improve that cash CapEx free do we conversion feel comes income going our certainly, - is rather down. we to generation dramatically and going as So

X%, get kind think now. we we're right level Do of over that think X% X% can to I approaching that we in timeframe? X.X% and Yes.

Scott Group

sorry? metric that to, What's you're referring

Nadeem Velani

- our free yield. cash cash Free

Scott Group

Okay, perfect.

Okay.

Nadeem Velani

cash XX%. conversion free approaching Our

Scott Group

Super guys. helpful, thank you,

Nadeem Velani

Scott. Thanks,

Operator

line the from Your Stephens. next Long comes Justin of from question

open. is line Your

Justin Long

as Thank could to you're baked you. about sales first guidance directionally as the you Good within afternoon. any I about assuming that into think help give talk one the are think guidance. we to the that Nadeem, us anything gains XXXX guidance? you quarter, just wanted through And the DLR that on then can about ask well?

Nadeem Velani

you volumes, a more stock-based OR on just weather, quarterly Not seasonality payments guidance, with occur. OR. And a is QX with expect some sub bit to that comp obviously, into with get of challenging the XX buy the too much the

you - talking and - want you I QX So could expect as if your the get the And of will to year-over-year question? then will second we do kind improve naturally about numbers, there would that's - well, natural from the get tougher be probably to sorry, we're math, but comp.

Justin Long

OR Any games you gave? guidance in XXXX sale on the

Nadeem Velani

have not digit a we - are didn't that they necessitate sales. I gains of close sales. say our we'll on give I or level Yeah, they We but do would some not. on of projects, guidance of mean, expect growth we double if couple guidance, does But level see do EPS gains of OR EPS any

Justin Long

Congrats Okay, on year. great Thanks. that's helpful. a

Nadeem Velani

Thank you.

Keith Creel

you. Thank

Operator

Barclays. Your question line from comes of the from Oglenski Brandon next

Your line open. is

Brandon Oglenski

long guys dividend the Scott's do I be healthy discussion I changing but guess Nadeem, always the this from is to a versus question everyone. at taking the off coming been is evening, know buyback process cash on have. time and there shows flow, thanks enthusiasm my it's the having thought all? through love And in a that I results. good Hey, It you question. for call,

Nadeem Velani

it in a We've I'd balanced And that say of been I we a last mean, bit I had last of - call the five return the transparent years. our more pretty XX%. No, of we've We've that a our years. been to increasing dividend three industry the think XX%, dividend. in getting in have increaser the been closer fastest we terms goal payout ratio

Canada. will to aristocrats enter think be next fund named Starting I S&P we'll week, that. dividend the we

guess So is like the last - our I we're growing, problem class is problems, said, is headway. making years. The four I EPS XX%, to first close

bit our So a they a balanced increasing we want better more get rails there's been as There's other stocks we're that they mindful that due base also - not we're well, - and that dividend that also that to but and shareholder changed underpriced. that We've want has have our an been mindful trying to execute very approach. may premiums.

opportunity continue it's pleased with. so an cheaper, shareholders And which stock to been have buy back been very to our I our think

price. the back of close since of we half think stock billion to bought half today's the - over last $XX XXXX I at

it's to So have approach. balanced a good a been opportunity

dependent. price are we also So

in to X% payout line get still will probably faster opportunity continue bottom cash our the of shareholders you XX% level. a this to to can But is buybacks at to XX% So pace we to continue returning and ratio. expect to that have increase to around as share dividend natural that course

Brandon Oglenski

Thanks Nadeem.

Operator

line of Desjardins from Your next question comes Capital Benoit from a Poirier Markets.

is line open. Your

Benoit Poirier

and land maybe in quick question A for available the provide deploy gentlemen. or afternoon, Good to Yeah. the excess some buyback the color maybe could Nadeem, maybe the you. you Thank year some this envelope how about many more capital cadence acres opportunity to XXXX? year, share XXXX in about also on of terms color provide specifically of

Nadeem Velani

I part, a the - This didn't most our buyback, time CP. since at is complete we NCIB So been complete we buybacks. for our the mean, first an we've do

I'm X.X% The cost. announced we the market's going not to So sure much how volatile. program. it's

to that's math of your going really going on drive what be stock Benoit, price expected dependant to it. is it's the So

we constrain our So push Keith leverage about balance we as more that our make want than sure talked not times. a to earlier. half to we We ourselves and sheet will - two protect

us as bit more visibility bit on So reacting. hold we stock a and of for that buyback will also too decision gets we making reason that give our market if stagger to and partly to dividend is decisions time And see the expensive, a our decisions, how the back.

that's it. I I So the to price. won't think expecting are how tell we predict because you stock pay about we what can't

you Can clarify? just the question. question fully of land I hear the entire piece didn't the On

Benoit Poirier

over that the the acres in of down Well, land you've there to years been leverage are you ahead. quite the - leverage the available available could good years real I estate. - And still in road still future XXXX the

the just was this real estate you maybe I So excess opportunities have more XXXX about leverage Nadeem? curious to to in see color

Nadeem Velani

Sure.

are of do the we across transload midst the that and have property. we - So are investments a in of number

well. in whether So transload Southern Vancouver, just completed work Ontario, that's Chicago, some as Montreal

that's basis. an So of kind ongoing

a land of Now, - the XXXX acres. of there's a that's lot lot

actively on far comes that's it'll a somewhat somewhat little dependent we time. but can up, bit could - looking opportunities, have as - interest until that - it unless to enough operational out it's the not an or what used there, selling land land to see aspect from an there's actively that we're opportunity. benefit - usually of we'll dependent a as market, So land, for as long sell on But we

getting in a mean, there's which think that's sales land I could to million of why I interest on some bit occur, we're active little we some we're may of have and now, I that of land XXXX right type is magnitude range again, what of in the million - XX available counting said range XX not the So it. but

Benoit Poirier

That's for great color. time. Thanks the

Nadeem Velani

Thanks Benoit.

Operator

comes the David from next Vernon question of from Bernstein. Our line

Your line is open.

David Vernon

the guys, end you questions side. Hey, on market for two John

opening imbalances a Dakota is the guys' would that what whether do start Is you're inland crude the it profile up material that Because the of that you there's I flow. launch I'm about First, US at curious pipeline Saint your steamship And going be on really about Canada be the question know that second imagine trade to service. you closure some traffic? looking margin bound the traffic? ports, rail intermodal John franchise? and type to traffic? by think project? bound Is for lines to for how Access it And as then initially

John Brooks

that We've something a pipeline upside and it for Dakota think there's for of to if opportunity, happened by business move or crude able generate putting on Yeah. No, shutting some certain lot is crude watching yeah. of Bakken North Dakota. ship down I they of Dakota years. of a been that But an of sideline No, with pipeline, North generate I it for pretty number the We a think noise it been certainly an David. that there of we're rail stable would time. out if around closely. towards amount obviously, would call would Access, do opportunity out we course,

a about I business another to Montreal. opportunity. intermodal Certainly extensively market And import our competitor and we've of for As to I add without more ton margin Saint domestic capacity the there's to the it opportunity talked John, that cars existing those quite that over movements There's concerns export Saint it's enjoyed into up, a Again, of lot from that in the today. the there. are upside some to just ramping also not competitors be of really excited lot it's in about train relative a a John relates number Atlantic Canada that Maritimes out on incremental running but trains of don't time. initial have there of the play. can't

But Montreal Canada, bit mix the I think is US little be bigger as Chicago going the Toronto be initially a it'll balances markets. in little I what see into say and of key out, be moving be Chicago, principally There it Canada. might even into we market. the - the a would Montreal, Toronto. maybe But it'll it'll western down

David Vernon

helpful. Thank thanks That Alright, very much. you. was very

John Brooks

Yeah.

Operator

out would time. back Mr. Creel. now of Keith call now turn are the to over We I

Keith Creel

for want their thank their chance for afternoon and I our share think a to us with to us questions. Thanks allow I story. attention, sticking this everyone exciting

phenomenal we forward safe. talk in for April. exceptional said share Take us to look XXXX, up beginning, an the to care. As I overachieve. March, and exceptional Stay set you 'XX a we in had April to Thanks we certainly and quarter first or our results expect to

Operator

conference today's concludes call. This

You may now disconnect.

Canadian Pacific Railway Limited (CP) 28 Jan 212020 Q4 Earnings call transcript