Canadian Pacific to close its Calgary Locomotive Reliability Centre after order by Canadian Transportation Agency affects 24-7 operations, but other 24-7 railway activities taking place in the yard will not be affected

Sandy Yang

CALGARY, Alberta , September 20, 2013 (press release) – Canadian Pacific (TSX: CP) (NYSE: CP) has given notice that it will close its Locomotive Reliability Centre (LRC) at Alyth Yard in Calgary in the next number of months. This will result in the elimination of approximately 130 local positions.

CP's decision is the result of a Canadian Transportation Agency (CTA) September 13, 2013 order directing the railway to immediately cease and desist "load testing" and idling operations in proximity to the LRC between 11:00 p.m. and 7:00 a.m. This order poses productivity challenges for service and maintenance work of locomotives during this ordered time.

The CTA order fails to recognize the 24-7 operational requirements and restricts the railway's ability to provide service for customers in Calgary, throughout North America, and those relying on coastal ports for off-shore shipments.

In the coming months locomotive repair and maintenance work, previously conducted in Calgary's 60-year-old Alyth LRC, will be transitioned to other maintenance facilities on the CP network.

Alyth Yard will continue to serve as an important rail yard operation for CP, as it has for more than a century. The CTA decision does not impact other 24-7 railway activities taking place in the yard.

About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) is a transcontinental railway in Canada and the United States with direct links to eight major ports, including Vancouver and Montreal, providing North American customers a competitive rail service with access to key markets in every corner of the globe. CP is a low-cost provider that is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpr.ca to see the rail advantages of Canadian Pacific.

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