The document provides an overview of Canadian Pacific Railway (CP Rail) including its founding in 1881, expansion over the decades, current operations transporting commodities like coal and grain, leadership, financial performance, and strategies to build on its long-term success operating freight rail across Canada.

1. Presented By:
Reda Sabbah
Vision Statement
"To be the safest, most fluid railway in North
America"

2.  Founded in 1881
 George Stephen was
the first president
 William Cornelius Van
Horne took over after
initial failed effort
◦ He was lured by a
significant income
 Last spike went in on
November 7th, 1885
 First train took off
from Montreal to Port
Moody on June 28th,
1886

3.  Expanded to
steamships, natural
gas, and many other
ventures in the late
1800’s
 Complete disposal for
the war effort of WWII
 Second largest
Canadian company by
1986
CP Hotel and Train Station in
 Owned CP Hotels Montreal – Today known as the
(Fairmont) until 1999 Fairmont Queen Elizabeth

4. ◦ William Cornelius Van Horne–
General Manager – Canadian
Pacific Railway
◦ George Stephen– First President –
Canadian Pacific Railway
Van Horne
◦ Fred Green– 16th and current
President and CEO – CP Rail
◦ John E. Cleghorn – Chairman of
the Board – CP Rail
◦ Kathryn McQuade – Executive VP
and CFO – CP Rail
Fred Green

5.  50 % of CP Rail’s freight is COAL & GRAIN
 Other commodities include sulfur, fertilizers,
chemicals, automobiles, and forest products
 Passenger trains:
◦ Immigrants & WWII Troops
◦ West Coast Express
◦ Rocky Mountaineer
 Steamships
 Funeral Trains for important people
 Hotels until 1999
 Airline from 1942 - 1987

6.  Building and Maintaining Relationships with
existing clients
 Long term agreements with
Teck, Canpotex, and Canadian Tire
 Targeting growing markets such as Oil and
Ethanol

7.  Coal is one of the biggest commodities
hauled by CP Rail
 The following graph shows annual supply and
demand for coal estimated over 6 years:

8. 2011 was a record breaking year!
 Train speeds increased by 8%
 3 % reduction in fuel consumption
 18% increase in number of cars per train
 9% increase in over all revenue
 Several long-term commercial contracts
signed and more on the way!

9. Year 2009 2010
Sales/ 4,433.70 5,013.30
Revenue
Gross 2,103.20 2,434.00
Income
Net 550.00 650.70
Income
Cost of 2,330.50 2,579.30
goods
Sold
•Information retrieved from personal
Bank of Montreal Investor Line account

10.  Fixed Costs:
◦ Lease on all buildings and offices
◦ Utilities
◦ Executive and other employee salaries
◦ Insurance
◦ Licenses and other set government fees
◦ Set Legal fees
 Variable Costs:
◦ Maintenance costs
◦ Hourly wages
◦ Overtime pay
◦ Cost of fuel
◦ Cost of over all labor

11.  CP Rail is the second largest freight railway in
Canada next to Canadian National Rail (CN)
 CN is a much larger operation than CP with
services to the United States.

12.  Outstanding leadership
 Great reputation for safety
 Long-standing customers
 Diplomatic in conducting business
 Diversified services
 Effective Corporate Culture

13.  Over a century old
 Grown consistently over the years
 Adjusts to current markets
 Second largest freight railway
 Strong shares in the stock market
 Solid relationships with clients
 Staff with CP Rail love their jobs!

14.  http://www.cpr.ca/en/about-
cp/Pages/default.aspx
 http://www.glenbow.org/exhibitions/online/l
ibhtm/train.htm
 http://forum.skyscraperpage.com/
 http://cpontrack.com/ourplan/
 http://www.treehugger.com/corporate-
responsibility/corn-ethanol-worse-than-oil-
california-rules-yes.html
 www.theglobeandmail.com