Canadian Pacific Railway Limited announces plans to invest between $950 million and $1.05 billion for capital projects in 2011.

“CP is focused on continuously improving service reliability, asset velocity, and productivity. With strong demand projected in many of our commodity based businesses, this capital plan will enable us to meet our customer’s needs and continue to lower our operating ratio to create a stronger franchise for the future,” said CP Chief Financial Officer, Kathryn McQuade.

The 2011 Capital Plan will focus on:

  -  Making strategic and targeted capacity investments to ensure that the
    efficiencies gained through our long train strategy, repair facility
    and yard consolidations are sustained as business levels return;
  -  Investing in fast payback productivity and technology projects to
    further our lean and process re-engineering efforts thereby further
    improving shipment reliability and customer service;
  -  Pursuing growth and market based opportunities, such as our transload,
    intermodal and energy projects which produce compelling returns; and
  -  Continuing to invest in our “Digital Railway” technologies to lift
    efficiency, service and safety to new levels.

Major investment categories include the following approximate amounts:

  -  $680 million for basic track infrastructure renewal;
  -  $200 million for volume growth, productivity initiatives, and network
    enhancements;
  -  $80 million to strengthen and upgrade IT systems to enhance shipment
    visibility and information needs, and
  -  $40 million to address capital regulated by governments, principally
    train control.

“Our first priority is to re-invest in the business keeping our core franchise safe and well maintained. The improving economy creates opportunities to capture growth more efficiently through infrastructure and technology investments,” said, Kathryn McQuade.

Note on forward-looking information

This news release contains certain forward-looking statements relating but not limited to our operations, anticipated financial performance and business prospects. Undue reliance should not be placed on forward-looking information as actual results may differ materially.

By its nature, CP’s forward-looking information involves numerous assumptions, inherent risks and uncertainties, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods, timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments, including long-term floating rate notes; and various events that could disrupt operations, including severe weather conditions, security threats and governmental response to them, and technological changes.

Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.