Yesterday Canadian Pacific (NYSE: CP) (TSX: CP) and Hapag-Lloyd AG (XETR: HLAG) (FWB: HLG) announced they have extended their long-term rail service agreement to the end of 2025. Additionally, after successful calls to the Port of Saint John, N.B., this summer, Hapag-Lloyd will begin regular service via CP and this key Atlantic Canada port starting in 2021.
“It’s a special day when we get to announce the renewal of a contract with Hapag-Lloyd, our largest customer by volume and a world-class ocean carrier,” said CP President and Chief Executive Officer Keith Creel. “It’s through our network reach and disciplined execution of the precision scheduled railroading model that we can offer a caliber of service capable of winning our customers’ support in this way. With our expanded reach to the deep-water port at Saint John, we are proud to offer Hapag-Lloyd another reason to use our services.”
CP regained access to the Port of Saint John in June 2020 with the acquisition of the Central Maine & Quebec Railway and through connections with the Eastern Maine and New Brunswick Southern railways.
“The return of CP was a transformational development for our region,” said New Brunswick Premier Blaine Higgs. “This agreement with Hapag-Lloyd is another critical step for our province. Port Saint John offers a competitive advantage, and this will lead to more jobs and more investment in New Brunswick.”
CP also serves Hapag-Lloyd through ports at Vancouver and Montréal.
“Having Hapag-Lloyd call the Port of Saint John regularly is the first step in the port becoming a world-class gateway,” Creel said. “Through the Port of Saint John, CP enjoys about a 200-mile advantage over our competition into Montréal, Toronto and Chicago. This East Coast advantage bodes well for businesses in Atlantic Canada, customers across our network, and for the broader supply chain. We are only just starting to unlock the potential that exists at the Port of Saint John.”
Note on forward-looking information
This news release contains certain forward-looking information and forward-looking statements (collectively, “forward-looking information”) within the meaning of applicable securities laws. Forward-looking information includes, but is not limited to, statements concerning expectations, beliefs, plans, goals, objectives, assumptions and statements about possible future events, conditions, and results of operations or performance. Forward-looking information may contain statements with words or headings such as “will”, “anticipate”, “believe”, “expect”, “plan”, “should” or similar words suggesting future outcomes.
This news release contains forward-looking information relating, but not limited, to, our operations, priorities and plans, the anticipated timely performance by us and Hapag-Lloyd AG of our respective obligations, the anticipated timing and use of, and impacts and benefits to, the Port of Saint John by Hapag-Lloyd AG and the anticipated and future benefits of CP’s rail network from the Port of Saint John to businesses in Atlantic Canada, CP’s customers and the supply chain.
Source: Canadian Pacific