May 30th 2007

OOCL Symposium

CANADIAN PACIFIC Ingenuity

Partnership for Continued Growth

Working together to enhance the Gateway’s performance


Questions & Answers


Shippers / Receivers – What can you do?


Partners – What are our colleagues in the supply chain doing?


CP – What are we doing?

There are things we can do individually to better position ourselves for further growth. But it is the net impact of what we do collectively that will ultimately drive our mutual success.

Overview

1

CP – Overview & Growth Initiatives

2

Global 39%

Interchange with US RR

CPR Border Crossing

3

14,000 mile network with key connections to other railroads and global reach through the ports of Vancouver, Montreal, New York/New Jersey and Philadelphia

Transborder 28%

Domestic US 10%

Domestic Cdn 23%

Canadian Pacific - Franchise Overview




2002

2003

2004

2005

2006

38%

 Domestic: Shipments within North America = 50%  International: Ocean carriers import and export = 50%

Intermodal accounts for 29% of CP revenues (YE 2006)

2001

Intermodal Volumes

Intermodal - A track record of growth

CP – Intermodal Overview

4

115,000 25,000 45,000

Edmonton

Saskatoon

Regina

170,000 664,000 275,000

Obico

Vaughan

Lachine

12,000

Dryden

115,000

220,000

Calgary

Winnipeg

264,000

Annual Lift Capacity

Pitt meadows

Intermodal Terminal

Intermodal Terminals

Terminal capacity to grow

CP – Intermodal Terminals

5

0

200

400

600

800

1000

1200

1997

858

1998

1,094

1999

843

T rack

2000

571

2002

551

699

IT

2003

Locomotives

2001

753

(C$ million)

Capital Expenditures


CP’s balanced integrated operating plan

cold slow protocols

Other

2004

662

2005

906

2006

822

2007T

885-895


Infrastructure maintenance: new rail laid, increased rail testing, wheel change outs,


Terminal Investments in Toronto, Montreal and Chicago


Since 2002 - 500 new locomotives and approximately 6,500 new double stack cars


Investment of $160 M in corridor infrastructure

CP investing a number of ways to increase capacity

CP - Investment in the Vancouver Gateway

6

0

20

40

60

80

100

120

140

160

$160M

Phase 1 Completed

4

6

10

Potential Future Expansion

7

X = Cumulative additional trains per day in Calgary/Vancouver corridor

10

A multi-phased or “gated” capacity expansion program

CP - Western Corridor Expansion Phases

Annual Capex ($millions)

7

+6 Glenwood

+3

Chicago

St Paul

Detroit

Toronto

+ 10

Sudbury

Harrisburg

Montreal

Siding extensions, full CTC, yard staging tracks and “Jobs Tunnel” Project

New sidings, siding extensions, and partial CTC

Thunder Bay

- Additional Trains Per Day -

Design Objective

Current long term view of CP network

Siding extensions, sections of double track and yard support complex east of Calgary

Moose Jaw

Winnipeg

Full CTC, yard staging tacks adjacent to Calgary and relocation of Intermodal terminal

+ 10

Yard staging tracks, siding extensions and new sidings

+6

Calgary

Saskatoon

Siding extensions, signaling of sidings and additional sections of double track

Kingsgate

Vancouver

+ 10

+8

Edmonton

Long-term Capacity Plan - 130 individual construction projects with an estimated cost of approximately $500 M

CP - Building New Capacity

8

Always striving to find capacity and efficiency breakthroughs


40’ Platform Double Stack railcar pilot to increase density on trains and tracks

Vancouver ports


Dynamic Export Management (D.E.M.) system to manage timing exports flowing to

to help protect system fluidity in the event of disruptions (severe weather, etc.)


Studying the pragmatics of a “buffer” railcar supply to be stored near key locations to

There are a number of new initiatives currently under study, aimed at enhancing overall system capacity

CP - New Productivity Initiatives – Preview

9

Supply Chain Partners - What are they doing? - What are we doing together?

10

Working to create capacity

 Target implementation of new Navis terminal operating system by year-end 2007

 Target daily rail handling capacity increase 10%

 Target terminal capacity increase 6 to 8%

 2 new RTG, 5 top picks, and various support equipment

 1 new Super Post-Panamax dock gantry crane Aug. 2007

Vanterm:

2006 Record Year at TSI Terminals: Vanterm 696,000 Teus

Partners – TSI / Vanterm

11

Working to create capacity

 Followed by development of new three-berth container terminal by 2012

 Add 3rd birth by 2009, including 23,000 ft of rail track

Roberts Bank Expansion (Doubling Terminal Capacity):

 Target daily rail handling capacity increase by 20%

 Target terminal capacity increase 6 to 8%

 Implementation of new Navis system Oct 2007

 10 new RTG's April 2007

 1 new RMG March 2007

Deltaport:

2006 Record Yr at TSI Terminals: Deltaport 1,200,000 Teus

Partners – TSI/Deltaport

12

6. Detroit to Chicago trackage rights (NS)

3. Thunder Bay to Franz haulage (CN)

5

5. Delaware & Hudson (CN/NS)

6

4

2. Fraser Canyon directional running (CN)

3

4. Sudbury to Mactier directional running (CN)

2

1. Vancouver area (CN)

1

Co-production – A smart way to create capacity

Partners - Co-Production Initiatives

13

Block stowage by Lines

Terminal operators fluidity plan + continued investment







Working together to enhance the Gateway’s performance

$1 Billion


Active Participants in Gateway Strategy Funding Increased from $500M to

ALR Lands/FSD as off-dock storage




Vancouver operational stakeholders continue to review additional measures to enhance capacity and provide contingencies such as for severe weather:

Partners - Initiatives

14

Importers / Exporters / Forwarders / Brokers / Truckers - What can you do?

15

Complete and accurate documentation

More level capacity consumption







Making smart use of existing capacity avoids additional expense


Balanced flows

 A few containers consume a disproportional amount of space due to excessively long storage, abandonment, etc. Expensive and inefficient.


Efficient use of on-site storage

 Smoother seasonality  Weekend and non-peak hour pick ups and deliveries

Accurate and timely advance forecasts




Importers, Exporters, Forwarders, Brokers , Truckers, etc all need to play an important role in being efficient consumers of capacity.

Importer/Exporters - Initiatives

16

- Thank You OOCL! - Thank You Importers & Exporters!


CP values our long term relationships:


Smart consumption is as important as smart expansion

growth of our customers


The Vancouver Marine Terminals are expanding to enable further


CP is working closely with our partners in the network

west coast port


CP is fully committed to Vancouver Gateway as Canada’s primary


CP is committed to further expansion as demand justifies it

Growth is expected, welcomed and we’re preparing for it

Summary

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Questions?

18

Appendix

19

Winter 2007

20

All transportation modes affected

2007 – Adverse winter conditions

21

Q1

Q1 - Operational Stakeholders handle double-digit increases over 2006


Daily tactical planning with Marine terminals to maximize their production


Used VIF to move overflow traffic when operationally feasible


Continued to work with CN on the to re-route trains


Inland terminals worked overtime to maximize train lengths to Vancouver


Additional staff in the Mechanical Department to repair bad order railcars


55 incremental locomotives added to fleet


Additional 6-7 trains per week added to IM train service


Railcar fleet increased by approximately 15% over 25,000 platforms

Bringing Fluidity Back to the Corridor

22

Always striving to find capacity and efficiency break thoroughs


40’ Platform Double Stack railcar pilot to increase density on trains and tracks

Vancouver ports


Dynamic Export Management (D.E.M.) system to manage timing exports flowing to

to help protect system fluidity in the event of disruptions (severe weather, etc.)


Studying the pragmatics of a “buffer” railcar supply to be stored near key locations to

There are a number of new initiatives currently under study, aimed at enhancing overall system capacity.

CP - New Productivity Initiatives

23