Canadian Pacific Kansas City Limited (CPKC) is a premier Class I railway operating a transcontinental network across Canada, the United States, and Mexico. Headquartered in Calgary, Alberta, CPKC is the first and only single-line railway connecting North America’s three largest economies.
Formed through the historic merger of Canadian Pacific Railway and Kansas City Southern on April 14, 2023, CPKC operates approximately 20,000 miles of rail, employs around 20,000 people, and serves as a vital artery for freight transportation. The company facilitates the movement of goods and commodities, supporting industries such as agriculture, automotive, energy, and manufacturing, while driving economic growth and sustainability across the continent.
CPKC is publicly traded on the Toronto Stock Exchange (TSX: CP) and the New York Stock Exchange (NYSE: CP). With a market capitalization exceeding C$108 billion as of December 31, 2024, CPKC is a cornerstone of North American transportation infrastructure. The company emphasizes safety, operational efficiency, and environmental stewardship, leveraging advanced technology and infrastructure investments to deliver reliable and sustainable transportation solutions.
Business Segments
CPKC operates as a single integrated railway business, with its operations categorized into various freight service lines based on the commodities transported. Below is a detailed breakdown of CPKC’s business segments, including their revenue contributions for the year 2024.
Freight Service Lines
- Grain (19% of Total Revenue)
- Description: CPKC transports a wide range of grains, including wheat, canola, barley, and specialty crops, primarily from the Canadian Prairies and U.S. Midwest to domestic markets, export terminals, and processing facilities. The company’s extensive network connects key agricultural regions to global markets, ensuring efficient delivery for farmers and agribusinesses.
- Key Markets: Canada, U.S., and export markets via ports in Vancouver, Thunder Bay, and the Gulf of Mexico.
- Operational Details: CPKC operates dedicated grain trains and has long-term agreements with grain elevators and agribusinesses to ensure reliable supply chains. In 2024, the company moved significant volumes of Canadian and U.S. grain, supported by its High Efficiency Product (HEP) train model, which optimizes capacity and reduces transit times.
- Revenue Contribution: C$2.85 billion (19% of total freight revenue of C$15.02 billion).
- Coal (7% of Total Revenue)
- Description: CPKC transports metallurgical and thermal coal for steel production and power generation, primarily from mines in Western Canada to export terminals and domestic customers.
- Key Markets: Western Canada (Teck Resources mines), U.S., and international markets via Pacific Coast ports.
- Operational Details: The company’s coal transport is supported by high-capacity unit trains, with key routes from Alberta and British Columbia to Vancouver and Prince Rupert. CPKC’s precision scheduled railroading (PSR) model enhances efficiency in coal delivery.
- Revenue Contribution: C$1.05 billion (7% of total freight revenue).
- Potash (7% of Total Revenue)
- Description: CPKC is a leading transporter of potash, a critical fertilizer component, from Saskatchewan’s vast potash mines to North American and international markets.
- Key Markets: Canada, U.S., and export markets via ports in Vancouver and Portland.
- Operational Details: The company collaborates with major potash producers like Nutrien and Mosaic, using dedicated unit trains to ensure timely delivery. CPKC’s network provides direct access to key export terminals.
- Revenue Contribution: C$1.05 billion (7% of total freight revenue).
- Fertilizers (4% of Total Revenue)
- Description: This segment includes the transportation of fertilizers (excluding potash), such as nitrogen and phosphate-based products, for agricultural use.
- Key Markets: Canada, U.S., and Mexico, with a focus on agricultural hubs.
- Operational Details: CPKC’s fertilizer transport supports the agricultural supply chain, with efficient delivery to distribution centers and end-users.
- Revenue Contribution: C$0.60 billion (4% of total freight revenue).
- Forest Products (7% of Total Revenue)
- Description: CPKC transports lumber, pulp, paper, and other forest products from production facilities in Canada and the U.S. to domestic and international markets.
- Key Markets: North America, with exports to Asia and Europe.
- Operational Details: The company uses specialized railcars, such as centerbeam flatcars, to handle forest products, ensuring safe and efficient transport.
- Revenue Contribution: C$1.05 billion (7% of total freight revenue).
- Energy, Chemicals, and Plastics (14% of Total Revenue)
- Description: This segment includes crude oil, refined fuels, chemicals, and plastics, serving the energy and manufacturing sectors.
- Key Markets: Canada, U.S. (including Gulf Coast refineries), and Mexico.
- Operational Details: CPKC’s network connects oilfields, refineries, and chemical plants, with a focus on safety and regulatory compliance for hazardous materials.
- Revenue Contribution: C$2.10 billion (14% of total freight revenue).
- Metals, Minerals, and Consumer Products (8% of Total Revenue)
- Description: CPKC transports steel, aluminum, aggregates, and consumer goods, supporting construction, manufacturing, and retail industries.
- Key Markets: North America, with key routes to industrial hubs.
- Operational Details: The company uses specialized equipment, such as gondola cars, for bulk materials and boxcars for consumer goods.
- Revenue Contribution: C$1.20 billion (8% of total freight revenue).
- Automotive (7% of Total Revenue)
- Description: CPKC transports finished vehicles and automotive parts for manufacturers and dealers across North America.
- Key Markets: Canada, U.S., and Mexico, with key routes to automotive manufacturing hubs like Detroit, Silao, and Ramos Arizpe.
- Operational Details: The company uses bi-level and tri-level autoracks to transport vehicles, with a focus on just-in-time delivery for automakers.
- Revenue Contribution: C$1.05 billion (7% of total freight revenue).
- Intermodal (27% of Total Revenue)
- Description: CPKC’s intermodal segment involves the transportation of containers and trailers, serving domestic and international supply chains.
- Key Markets: North America, with key routes connecting ports (Vancouver, Montreal, Lázaro Cárdenas) to inland distribution centers.
- Operational Details: CPKC operates intermodal terminals in major cities, offering seamless rail-truck transfers. The segment benefits from strong partnerships with shipping lines and logistics providers.
- Revenue Contribution: C$4.06 billion (27% of total freight revenue).
Revenue Breakup Summary
| Segment | Revenue (C$ Billion) | Percentage of Total Revenue |
|---|---|---|
| Grain | 2.85 | 19% |
| Coal | 1.05 | 7% |
| Potash | 1.05 | 7% |
| Fertilizers | 0.60 | 4% |
| Forest Products | 1.05 | 7% |
| Energy, Chemicals, and Plastics | 2.10 | 14% |
| Metals, Minerals, and Consumer | 1.20 | 8% |
| Automotive | 1.05 | 7% |
| Intermodal | 4.06 | 27% |
| Total Freight Revenue | 15.02 | 100% |
Products and Services
CPKC primarily offers freight transportation services, with additional non-freight services such as logistics and transload solutions. Below is a comprehensive list of products and services, along with their revenue contributions (aligned with the business segments above).
- Freight Transportation Services (98.7% of Total Revenue)
- Description: CPKC’s core offering is rail-based freight transportation, moving goods across its 20,000-mile network in Canada, the U.S., and Mexico. Services include unit trains, intermodal transport, and carload shipments tailored to specific commodities.
- Details:
- Grain Transport: Dedicated trains for bulk grain shipments, with specialized hopper cars.
- Coal and Potash Transport: High-capacity unit trains for bulk commodities, optimized for export markets.
- Intermodal Services: Container and trailer transport, with seamless rail-truck integration at terminals.
- Automotive Transport: Autorack services for finished vehicles and parts, supporting just-in-time delivery.
- Energy and Chemicals: Safe transport of hazardous materials, complying with stringent regulations.
- Revenue Contribution: C$15.02 billion (98.7% of total revenue of C$15.21 billion).
- Logistics and Transload Services (1.3% of Total Revenue)
- Description: CPKC provides logistics solutions, including transloading (transferring goods between rail and truck), warehousing, and supply chain management.
- Details:
- Transload Facilities: Operated at key terminals to facilitate cargo transfers, enhancing supply chain efficiency.
- Customs Services: Support for cross-border shipments, particularly at U.S.-Mexico border points.
- Supply Chain Solutions: Partnerships with third-party logistics providers to offer end-to-end solutions.
- Revenue Contribution: C$0.19 billion (1.3% of total revenue).
Revenue Breakup by Products and Services
| Product/Service | Revenue (C$ Billion) | Percentage of Total Revenue |
|---|---|---|
| Freight Transportation Services | 15.02 | 98.7% |
| Logistics and Transload Services | 0.19 | 1.3% |
| Total Revenue | 15.21 | 100% |
Company History
CPKC’s history is a tale of two iconic railways—Canadian Pacific Railway (CPR) and Kansas City Southern (KCS)—culminating in their merger to form a transcontinental powerhouse.
- 1881: Canadian Pacific Railway is founded to build a transcontinental railway across Canada, connecting the Atlantic to the Pacific. Completed in 1885, the railway played a pivotal role in Canada’s economic and social development.
- 1887: Kansas City Southern is established in the U.S., initially focused on connecting Kansas City to the Gulf of Mexico. Over time, KCS expanded into a major regional railway with operations in the U.S. and Mexico.
- 1900s–2000s: CPR grows into a diversified transportation company, expanding into shipping, hotels, and energy, while maintaining its core rail operations. KCS strengthens its U.S.-Mexico cross-border routes, becoming a key player in North American trade.
- 2008: CPR adopts precision scheduled railroading (PSR), a transformative operating model that enhances efficiency, reduces costs, and improves service reliability.
- 2010s: KCS expands its Mexican operations through its subsidiary, Kansas City Southern de México (KCSM), capitalizing on growing trade under the USMCA (formerly NAFTA).
- 2021: CPR announces its intent to acquire KCS, aiming to create the first single-line railway connecting Canada, the U.S., and Mexico. The C$31 billion transaction faces regulatory scrutiny from the U.S. Surface Transportation Board (STB).
- 2023: On April 14, 2023, the STB approves the CPR-KCS merger, and CPKC is officially formed. The merger creates a 20,000-mile network, integrating CPR’s Canadian and U.S. operations with KCS’s U.S. and Mexican routes.
- 2024: CPKC achieves record financial performance, with revenues of C$15.21 billion and a net income of C$3.65 billion. The company invests heavily in infrastructure, safety, and technology to support its transcontinental operations.
Brands
CPKC operates under a unified brand identity, with no distinct sub-brands for its freight services. However, its legacy railways and subsidiaries maintain recognizable identities in specific markets.
- CPKC (Primary Brand)
- Description: The unified brand representing the merged Canadian Pacific Kansas City Limited, symbolizing connectivity across North America.
- Details: The CPKC brand is used for all freight and logistics services, with a focus on reliability, safety, and sustainability. The company’s red locomotive livery and CPKC logo are iconic in the rail industry.
- Revenue Contribution: Represents 100% of CPKC’s revenue (C$15.21 billion), as all operations are consolidated under this brand.
- Legacy Brands (Non-Revenue Generating)
- Canadian Pacific (CP): The historic CPR brand, still used in marketing and community initiatives in Canada.
- Kansas City Southern (KCS): The KCS brand retains recognition in the U.S. and Mexico, particularly for cross-border services.
- Kansas City Southern de México (KCSM): Operates CPKC’s Mexican rail network, maintaining its identity for regulatory and market purposes.
- Details: These legacy brands do not generate separate revenue streams but are integral to CPKC’s regional identity and customer relationships.
Revenue Breakup by Brands
| Brand | Revenue (C$ Billion) | Percentage of Total Revenue |
|---|---|---|
| CPKC | 15.21 | 100% |
| Legacy Brands (CP, KCS, KCSM) | 0.00 | 0% |
| Total Revenue | 15.21 | 100% |
Geographical Presence
CPKC’s network spans Canada, the United States, and Mexico, making it the only railway with a single-line transcontinental system. Below is a detailed breakdown of its geographical presence and revenue contributions by region.
- Canada (45% of Total Revenue)
- Description: CPKC operates approximately 8,000 miles of track in Canada, connecting major cities (Vancouver, Calgary, Winnipeg, Toronto, Montreal) and key ports (Vancouver, Montreal, Saint John).
- Key Operations:
- Grain and potash transport from the Prairies to export terminals.
- Intermodal services linking ports to inland markets.
- Coal transport from Western Canada to Pacific ports.
- Revenue Contribution: C$6.84 billion (45% of total revenue).
- United States (35% of Total Revenue)
- Description: CPKC’s U.S. network covers approximately 7,000 miles, serving the Midwest, Northeast, and Gulf Coast regions, with key hubs in Chicago, Kansas City, and Minneapolis.
- Key Operations:
- Grain and ethanol transport from the Midwest to domestic and export markets.
- Automotive transport to manufacturing hubs like Detroit.
- Intermodal services connecting U.S. ports to inland distribution centers.
- Revenue Contribution: C$5.32 billion (35% of total revenue).
- Mexico (20% of Total Revenue)
- Description: Through its subsidiary Kansas City Southern de México, CPKC operates approximately 5,000 miles of track, connecting Mexico’s industrial heartland (Monterrey, Mexico City, Querétaro) to the U.S. border and Pacific port of Lázaro Cárdenas.
- Key Operations:
- Automotive transport to manufacturing plants in Silao and Ramos Arizpe.
- Intermodal services for cross-border trade under the USMCA.
- Energy and chemical transport to industrial centers.
- Revenue Contribution: C$3.04 billion (20% of total revenue).
Revenue Breakup by Geography
| Region | Revenue (C$ Billion) | Percentage of Total Revenue |
|---|---|---|
| Canada | 6.84 | 45% |
| United States | 5.32 | 35% |
| Mexico | 3.04 | 20% |
| Total Revenue | 15.21 | 100% |
Financial Statements
Below are CPKC’s consolidated financial statements for 2024, presented in tables for clarity (all figures in C$ millions).
Consolidated Statement of Income
| Item | 2024 | 2023 |
|---|---|---|
| Revenues | ||
| Freight | 15,015 | 12,281 |
| Non-Freight | 190 | 274 |
| Total Revenues | 15,205 | 12,555 |
| Operating Expenses | ||
| Compensation and Benefits | 2,943 | 2,496 |
| Fuel | 1,929 | 1,781 |
| Materials | 463 | 374 |
| Equipment Rents | 136 | 121 |
| Depreciation and Amortization | 1,984 | 1,557 |
| Purchased Services and Other | 2,385 | 2,333 |
| Total Operating Expenses | 9,840 | 8,662 |
| Operating Income | 5,365 | 3,893 |
| Other Income (Expense) | (23) | 46 |
| Merger Termination Fee | – | 1,162 |
| Other Components of Net Periodic Benefit Recovery | 395 | 378 |
| Net Interest Expense | (805) | (771) |
| Income Before Income Tax | 4,932 | 4,708 |
| Income Tax Expense | (1,282) | (787) |
| Net Income | 3,650 | 3,921 |
Consolidated Balance Sheet
| Assets | 2024 | 2023 |
|---|---|---|
| Current Assets | ||
| Cash and Cash Equivalents | 561 | 519 |
| Accounts Receivable, Net | 1,845 | 1,891 |
| Materials and Supplies | 436 | 401 |
| Other Current Assets | 258 | 205 |
| Total Current Assets | 3,100 | 3,016 |
| Non-Current Assets | ||
| Property, Plant, and Equipment | 49,981 | 48,297 |
| Goodwill | 18,192 | 17,840 |
| Intangible Assets | 3,197 | 3,060 |
| Pension Asset | 2,196 | 2,645 |
| Other Assets | 2,210 | 2,054 |
| Total Assets | 78,876 | 76,912 |
| Liabilities and Equity | ||
| Current Liabilities | ||
| Accounts Payable and Accrued Liabilities | 2,773 | 2,558 |
| Long-Term Debt Maturing Within One Year | 2,024 | 1,496 |
| Total Current Liabilities | 4,797 | 4,054 |
| Non-Current Liabilities | ||
| Long-Term Debt | 18,171 | 18,907 |
| Deferred Income Taxes | 12,750 | 12,532 |
| Other Long-Term Liabilities | 1,627 | 1,567 |
| Pension and Other Benefit Liabilities | 589 | 590 |
| Total Liabilities | 37,934 | 37,650 |
| Shareholders’ Equity | ||
| Share Capital | 25,602 | 25,602 |
| Additional Paid-In Capital | 99 | 92 |
| Accumulated Other Comprehensive Loss | (1,234) | (1,223) |
| Retained Earnings | 16,475 | 14,791 |
| Total Shareholders’ Equity | 40,942 | 39,262 |
| Total Liabilities and Equity | 78,876 | 76,912 |
Consolidated Statement of Cash Flows
| Item | 2024 | 2023 |
|---|---|---|
| Operating Activities | ||
| Net Income | 3,650 | 3,921 |
| Depreciation and Amortization | 1,984 | 1,557 |
| Deferred Income Taxes | 177 | (389) |
| Other Operating Adjustments | (241) | (1,135) |
| Changes in Working Capital | 321 | (281) |
| Net Cash from Operating Activities | 5,891 | 3,673 |
| Investing Activities | ||
| Additions to Properties | (2,723) | (2,477) |
| Other Investing Activities | (138) | (177) |
| Net Cash Used in Investing Activities | (2,861) | (2,654) |
| Financing Activities | ||
| Issuance of Long-Term Debt | 3,302 | 3,517 |
| Repayment of Long-Term Debt | (3,517) | (3,277) |
| Dividends Paid | (968) | (969) |
| Other Financing Activities | (1,766) | (402) |
| Net Cash Used in Financing Activities | (2,949) | (1,131) |
| Effect of Foreign Exchange on Cash | (39) | 18 |
| Net Increase (Decrease) in Cash | 42 | (94) |
| Cash and Cash Equivalents, Beginning | 519 | 613 |
| Cash and Cash Equivalents, Ending | 561 | 519 |
Subsidiaries and Associates
CPKC operates through several subsidiaries, with Kansas City Southern de México (KCSM) being the most significant. Below is a comprehensive list of subsidiaries and their details.
- Kansas City Southern de México, S.A. de C.V. (KCSM) (100% Wholly-Owned)
- Description: KCSM operates CPKC’s Mexican rail network, covering 5,000 miles and serving industrial hubs like Monterrey, Mexico City, and the port of Lázaro Cárdenas.
- Details: KCSM is critical for cross-border trade, particularly in automotive, intermodal, and energy sectors. It operates under Mexican rail concessions and complies with local regulations.
- Revenue Contribution: C$3.04 billion (20% of total revenue, included in Mexico’s geographical revenue).
- Soo Line Railroad Company (100% Wholly-Owned)
- Description: Operates CPKC’s U.S. Midwest network, connecting Chicago to Minneapolis and other key markets.
- Details: The Soo Line is integral to CPKC’s U.S. operations, particularly for grain and intermodal transport.
- Revenue Contribution: Included in U.S. revenue (C$5.32 billion, 35% of total revenue).
- Delaware and Hudson Railway Company (100% Wholly-Owned)
- Description: Operates in the U.S. Northeast, connecting Montreal to New York and Pennsylvania.
- Details: Supports intermodal and industrial freight transport in the Northeast corridor.
- Revenue Contribution: Included in U.S. revenue (C$5.32 billion).
- Other Subsidiaries (100% Wholly-Owned)
- Description: CPKC owns various smaller subsidiaries for real estate, logistics, and equipment leasing, such as Canadian Pacific Properties Inc. and CPKC Leasing Ltd.
- Details: These entities support ancillary operations, such as managing rail yards and leasing railcars.
- Revenue Contribution: Included in non-freight revenue (C$0.19 billion, 1.3% of total revenue).
- Associates (Non-Controlling Interests)
- Description: CPKC has minority investments in certain logistics and terminal operations, but no significant associates are detailed in the financials.
- Revenue Contribution: Negligible (not separately reported).
Subsidiary Revenue Breakup
| Subsidiary | Revenue (C$ Billion) | Percentage of Total Revenue |
|---|---|---|
| KCSM (Mexico Operations) | 3.04 | 20% |
| Soo Line and Others (U.S. Operations) | 5.32 | 35% |
| Canadian Operations (Parent) | 6.65 | 43.7% |
| Other Subsidiaries (Non-Freight) | 0.19 | 1.3% |
| Total Revenue | 15.21 | 100% |
Physical Properties
CPKC’s physical assets include rail infrastructure, terminals, and offices across North America. Below is a detailed list of key properties.
- Rail Network (20,000 Miles)
- Description: CPKC’s transcontinental network includes tracks, sidings, and rail yards across Canada, the U.S., and Mexico.
- Key Locations:
- Canada: Vancouver, Calgary, Winnipeg, Toronto, Montreal.
- U.S.: Chicago, Kansas City, Minneapolis, Shreveport.
- Mexico: Monterrey, Mexico City, Lázaro Cárdenas.
- Details: The network includes mainlines, branch lines, and intermodal yards, maintained through regular capital investments (C$2.72 billion in 2024).
- Intermodal Terminals
- Description: CPKC operates 12 major intermodal terminals for rail-truck cargo transfers.
- Key Locations:
- Canada: Vancouver, Calgary, Toronto, Montreal.
- U.S.: Chicago, Kansas City.
- Mexico: Monterrey, Lázaro Cárdenas.
- Details: Terminals are equipped with cranes, storage facilities, and customs services for efficient cargo handling.
- Maintenance Facilities
- Description: CPKC operates locomotive and railcar repair shops to maintain its fleet of 1,500 locomotives and 35,000 railcars.
- Key Locations: Calgary, Winnipeg, Chicago, Monterrey.
- Details: Facilities support preventive maintenance and repairs, ensuring operational reliability.
- Corporate Offices
- Description: CPKC’s headquarters is in Calgary, Alberta, with additional offices in key markets.
- Key Locations:
- Calgary, AB: Global headquarters.
- Kansas City, MO: U.S. operational hub.
- Monterrey, Mexico: KCSM headquarters.
- Details: Offices house administrative, operational, and customer service functions.
Founders
CPKC, as a merged entity, traces its origins to the founders of its predecessor companies, Canadian Pacific Railway and Kansas City Southern.
- Canadian Pacific Railway Founders
- Sir John A. Macdonald: Canada’s first Prime Minister, instrumental in chartering CPR in 1881 to unite the country through a transcontinental railway.
- George Stephen and William Cornelius Van Horne: Key figures in CPR’s financing and construction, with Stephen securing funding and Van Horne overseeing the railway’s completion in 1885.
- Kansas City Southern Founders
- Arthur Stilwell: Founded KCS in 1887 to connect Kansas City to the Gulf of Mexico, envisioning a trade corridor to southern ports.
- Details: Stilwell’s vision laid the foundation for KCS’s growth into a major U.S.-Mexico railway.
Board of Directors
CPKC’s Board of Directors comprises 12 members, bringing diverse expertise in transportation, finance, and governance. Below is a comprehensive list.
- Isabelle Courville (Chair)
- Role: Independent Chair since 2023.
- Background: Former President of Hydro-Québec’s Distribution Division, with extensive experience in energy and governance.
- Keith Creel
- Role: President and CEO, Director since 2023.
- Background: Over 30 years in rail, led CPR since 2017, and spearheaded the CPKC merger.
- John Baird
- Role: Independent Director.
- Background: Former Canadian Minister of Transport and Foreign Affairs, with expertise in public policy.
- Gillian Denham
- Role: Independent Director.
- Background: Former banking executive with experience in corporate governance and finance.
- Antonio Garza
- Role: Independent Director.
- Background: Former U.S. Ambassador to Mexico, with expertise in U.S.-Mexico relations.
- David Garza-Santos
- Role: Independent Director.
- Background: Mexican business leader with experience in infrastructure and logistics.
- Edward Hamberger
- Role: Independent Director.
- Background: Former President of the Association of American Railroads, with deep rail industry expertise.
- Janet Kennedy
- Role: Independent Director.
- Background: Technology executive with experience in digital transformation.
- Henry Maier
- Role: Independent Director.
- Background: Former CEO of FedEx Ground, with logistics and supply chain expertise.
- Matthew Paull
- Role: Independent Director.
- Background: Former CFO of McDonald’s, with financial and strategic expertise.
- Jane Peverett
- Role: Independent Director.
- Background: Former energy executive with experience in sustainability and governance.
- Andrea Robertson
- Role: Independent Director.
- Background: Former executive in consumer goods, with expertise in marketing and operations.
Shareholding Details
CPKC is a publicly traded company with a diverse shareholder base. As of December 31, 2024:
- Major Shareholders: Institutional investors hold approximately 80% of shares, with key holders including pension funds, mutual funds, and asset managers (specific names not disclosed).
- Insider Ownership: Less than 1%, primarily held by executives and directors.
- Shareholder Type Breakdown:
- Institutional Investors: 80%
- Retail Investors: 19%
- Insiders: 1%
Investment Details
CPKC’s investments are primarily in capital expenditures to maintain and expand its rail network. The company does not report significant passive investments in other entities.
- Capital Expenditures (2024): C$2.72 billion, focused on:
- Track and infrastructure upgrades (C$1.5 billion).
- Locomotive and railcar fleet modernization (C$0.8 billion).
- Technology and safety systems (C$0.4 billion).
- Passive Investments: CPKC holds minority stakes in certain logistics and terminal operations, but these are not material to financials (no specific revenue or percentage breakdown provided).
Future Investment Plan
CPKC’s strategic investment plan for 2025–2027 focuses on enhancing network capacity, safety, and sustainability. Key initiatives include:
- Infrastructure Expansion: C$2.8–C$3.0 billion annually to increase track capacity, particularly on high-demand routes like Vancouver–Chicago and Laredo–Mexico City.
- Technology Investments: Deployment of advanced train control systems (e.g., Interoperable Electronic Train Management System) to improve safety and efficiency.
- Sustainability Initiatives: Investments in fuel-efficient locomotives and renewable energy for facilities to reduce emissions by 30% by 2030.
- Intermodal Terminal Upgrades: Expansion of terminals in Toronto, Chicago, and Monterrey to support growing intermodal demand.
- Cross-Border Enhancements: Investments in U.S.-Mexico border infrastructure to streamline customs and increase trade capacity under the USMCA.
