CANADIAN PACIFIC

CP Units Retired (or Sold) Recap

Locomotives retired on December 13^th, 2012:

CP SD40-2F 9000, 9002, 9005, 9010, 9016, 9018, 9019, 9022, and 9024.  All are to be sent to EMD - Progress Rail in Mayfield, KY  for rebuild into SD30C-ECO units during 2013. 

Mark Forseille snapped CPRS 9000 in Coquitlam BC in March 1996.  The locomotive was only a few weeks out of the Ogden paint shop.  Note the brass painted cab bell!

Locomotives retired during November 2012:

CP Slug 1021

SOO GP40 2041 (Ex-MILW)

Locomotives retired during October 2012:

CP Hump Controller 1150 (Wrecked in a collision at Agincourt Yard, and is to be scrapped onsite)

CP Slug 1022 Stored Serviceable in Montreal since last year (and which had been mated to a GP9u at St-Luc), was retired in October, and scrapped at the diesel shop  in October.

CP  (ex-GP35) Control Cab Daughter 1125

CP Slug Hump Controller 1152

CP GP9u 1526, 1546, 1628, and 1687 (ex-THB)

CP SD40M-2  5490 and 5492

DME GP40Q 4000,

CP GP9u 1557, 1575, 1607, 1609, and 1610.  (All moved to Coquitlam, BC).  

STLH SD40-2 5593

ICE  SD40-2 6413 (unit is in wrecked condition at the CSX Huntington Shops in Huntington, WV. The wreck on the CSX took place in March 2012 and the loco will not be returning to CP (our thanks to Bryan Jones).  

CP SD9043MAC 9129, 9133, and 9138 were sold to MANDAK and will be scrapped in Winnipeg.

CP SD9043MAC 9100-9128, 9130-9132, 9134-9137, 9139-9160 although not yet retired, are all for sale and stored in Winnipeg, MB.

In November, CP SW1200RS 1271 was sold to GMTX and arrived at Paducah, KY., and CP SW120oRS 1210, 1244, 1245, and 1249 have all been delivered to the Ontario Southland Railway (OSRX)

As CP has placed their entire fleet of SD9043MAC’s for sale, Mark Forseille submitted these terrific roster shots of the first three of the 9100-series  as they looked back in the day.  CP 9100 and 9101 are seen at Port Coquitlam on their  first visits out west, brand new and looking really good in late-1998 at the CP diesel shop in Coquitlam, BC.  Mark snapped CP 9102 at the  Coquitlam Diesel Shop on January 7^th, 2001. 

In December the following CP GE AC4400CW’s were stored serviceable:  8508, 8512, 8522, 8553, 8576, 8643, 9510, 9514, 9530, 9533, 9534, 9546, 9547, 9550, 9551, 9554, 9559, 9566, 9568, 9719, 9733, 9756, 9757, 9763, 9780, 9820 and 9840. (Subject to change).

CP GP38-2 Overhaul Update:

SOO SD60 Overhaul Update:

SOO SD60 overhaul update:

CAD Railway Services (Lachine, QC) continue to overhaul 24 SOO SD60’s and three SD60M to Tier 0+ compliance, equip them with AESS (Locomotive Automatic Engine Start/Stop) to conserve fuel, and repaint and renumber to CP 6200-series.  The entire rebuilt SD60 fleet will receive (PTC) Positive Train Control modifications at the CP St-Luc Diesel Shop.

In Service:

CP SD60 6249 (ex-SOO 6049) released December 21^st , 2012

CP SD60 6238 (ex-SOO 6038) released December 4^th, 2012

CP SD60 6256 (ex-SOO 6056) released November 29, 2012

CP SD60 6246 (ex-SOO 6046) released November 20, 2012  

CP SD60 6236 (ex-SOO 6036) released October 26th, 2012

CP SD60 6221 (ex-SOO 6021) released October 6^th, 2012

CP SD60 6223 (ex-SOO 6023) released September 20^th, 2012

CP SD60 6257 (ex-SOO 6057) released August 31^st, 2012

CP SD60 6234 (ex-SOO 6034) released August 15^th, 2012

CP SD60 6252 (ex-SOO 6052) released July 25th, 2012   

CP SD60 6255 (ex-SOO 6055) released June 21st, 2012

CP SD60 6229 (ex-SOO 6029) released June 5th, 2012

CP SD60 6243 (ex-SOO 6043) released April 20th, 2012

CP SD60 6254 (ex-SOO 6054) released March 29th, 2012

CP SD60 6245 (ex-SOO 6045) released March 6th, 2012

CP SD60 6242 (ex-SOO 6042) released March 1st, 2012

CP SD60M 6260 (ex-SOO 6060) released January 13th, 2012

CP SD60 6228 (ex-SOO 6028) released December 16th, 2011

CP SD60 6225 (ex-SOO 6025) released December 1st, 2011

CP SD60 6241 (ex-SOO 6041) released November, 2011

CP SD60 6240 (ex-SOO 6040) released October, 2011

CP SD60 6250 (ex-SOO 6050) released October, 2011

At Cadrail:

Earlier in the month on December 2^nd, Richard Marchi found CP SD60 6256 just released from CAD Railway Services, at the St-Luc Diesel Shop in Montreal.       

CP SD30C-ECO Update:

CP SD30C-ECO repower unit CP 5004 was sighted at EMD’s plant in Mayfield, KY in late November nearing completion, and should be released in the new year.

Further information about ECO re-powering can be found here:

http://www.progressrail.com/repowered-locomotives-710ECO.asp

CP GP20C-ECO Update:

All 30 GP20C-ECO units numbered 2200-2229 are to be assigned to St-Paul, MN, releasing up 30 CP GP38-2’s.  E. Hunter Harrison confirmed CP will continue with this rebuild program.

The 4-axle GP20C-ECO units being built at the EMD Muncie, IN facility are being numbered  in the CP 2200-series and ride on new frames, and feature the 8-710G3A prime mover and other hardware upgrades.  Note the new style long hood, American-style steps, as well as a new fuel tank and cab.     

On December 22^nd, Brian Marsh snapped CP GP20C-ECO 2205, 2206, 2208, 2203, and 2201 all recently assembled by Progress Rail Locomotive in Muncie, IN.  CP 2205 and all of the units now sport their EMD Builder/ Re-Power plates dated for December 2012. HO Scale brass models will be offered from Overland Models, Inc shortly.

While standing on the front walkway of CP 2206 and looking over the short hood nose Brian photographed the first group of CP GP20C-ECO units being lined up for delivery. Units are still undergoing final tests and operating with the auto-start units kicking in and out. In this view I am standing on 2206 and the front row of units from left to right are 2200, 2202, 2204, 2218 and the back from of units you can see only the rear end of 2201.

CP GP20C-ECO 2206 gets a workout on the test track in Muncie, IN on the morning of December 1, 2012. Unfortunately the skies were overcast but Brian Marsh’s images illustrate much of the side, and front end detail.

A few days earlier, Brian was first to photograph CP 2207 sitting in the sun for the first time outside the EMD shop in Muncie, IN.

The following are the most recently added numbers GP7u/GP9u loco’s to be cannibalized for usable components at the SRY shops in New Westminster, BC, and then scrapped at ABC Metals in Langly, BC:

CP 1508, 1514, 1526, 1530, 1531, 1538, 1543, 1557, 1573, 1574, 1575, 1607, 1609, 1610, 1612, 1614, 1615, 1618, 1632, 1636, 1639, 1647, 1649, 1652, 1691, and 1692, 8214, 8227, 8230, and 8237.  As of December 8^th, 29 were in Coquitlam, BC.   At press time CP 1639 was in transit WB, with CP 8214 is still stored in Montreal.

The following GP7u/GP9u locos have already been scrapped at ABC Metals.

CP 1501, 1503, 1505, 1515, 1519, 1525, 1528, 1565, 1566, 1567, 1568, 1569, 1570, 1581, 1582, 1588,1603, 1611, 1617, 1621, 1638, 1644, 1649, 1682, 1696, 1697, 8224, 8229, 8240, 8242,and 8264.

On December 8^th, Mark Forseille snapped CP GP9u 1526 at New Westminster, BC prior to moving to the SRY shop.

In mid-December, Andy Cassidy snapped CP GP7u 1508 and GP9u 1691 stored at CP Coquitlam, BC, both  destined to  SRY for stripping.

CEFX (GP38-3) IN SERVICE: 3803, 3805, 3807, and 3811.

CEFX (AC4400CW) IN SERVICE: 1002, 1006, 1007, 1014, 1018-1020, 1023, 1024, 1026-1059. 

CEFX (SD40-2) OFF LEASE: 2786, 2791, 2797, 2802, 2803, 3105, 3109, 3112, 3120, 3121, 3127, 3128, 3130, 3133, 3137, 3139, 3143, 3145, 3148, 3149, 3155, 3163, 3164, 3166, 3168, 3172, 3173, 3176, 3181, 3182, 3183, and 3188.  Many of these units are now back in the USA.

CITX (SD40-2) STORED: 2783, 2792, 2799, 2804, 3008, 3024, 3026, 3035, 3036,  3053, 3054, 3055, 3057, 3059, 3060, 3061, 3062, 3064, 3065, 3066, 3067, 3070, 3071, 3072, 3073, 3074, 3075, 3078, 3080, 3082, , 3083, 3086, 3089,  3090, 3091, 3092, 3095, 3097, 3098, 3099  3100, 3157 and 3177, all off lease and stored at various locations on CP.  In July, 3032 was removed from storage at Coquitlam, BC and sent to the SRY for lease. 

CITX (SD40-2) IN SERVICE:  2785, 2794, 2796, 3056, 3058, 3063,

3077, 3079. 3081, 3088, 3101, 3102, 3110, and 3170.

On December 12^th, Francois Jolin snapped Canadian Pacific crude oil #608 stopped and awaiting further instructions at Lacolle, Quebec, before crossing over the border and entering the United States.  Set up elephant-style, CP ES44AC 8933 and recently released CP SD60 6256, make a great looking and perfectly paint matched  CP  GE/EMD Lash-up. 

CP GP38AC 3002 and 3011 were photographed  by Andy Cassidy in the “Dry Dock” at the  Coquitlam Diesel Shop  (Mile 111.9, CP Cascade Sub), along with GP38AC 3004 and SD40-2 5797 sitting on Track East #1 on September 10^th 2012.  

On December 14^th Dennis Weber caught ICE Train 270 with CP SD60’s  6245, SOO 6051, and CP 6223 at Minneiska, MN., and DM&E Train B-27, with ICE SD40-2 6411 and CP SD60 6255 in the light snow at Stockton, MN 

Dennis also bagged ICE Train 270 with SOO SD60 6048,and DME SD40-2’s 6367-6201 on December 21^st. 

 President and CEO E. Hunter Harrison hosted CP's 2012 Investor Conference in New York on December 4^th, and 5^th 2012.  Hunter Harrison and his senior executive team provided details on CP's multi-year strategy and efficiency and growth objectives. The two-day program included both presentations and interactive question and answer sessions.

The Canadian Pacific Railway is looking into the possibility of selling 660 miles of track in South Dakota and three surrounding states, the railroad announced in December.  The announcement came a day after CP said it was mothballing plans to extend its Dakota, Minnesota & Eastern Railroad network into the Powder River Basin to ship Wyoming coal to power plants in other states because of weakening demand for coal. The railroad did not directly link the two decisions. Spokesman Ed Greenberg told The Associated Press both decisions are part of CP's "focus on being a more competitive and efficient railroad."  He declined to speculate on whether the 660 miles of track would be less profitable without the Powder River Basin business. In 2007, CP bought 2,500 miles of track and equipment from South Dakota-based DM&E and ICE for $1.5 billion.  CP said in a Tuesday statement that it is "inviting expressions of interest" for track from Tracy, Minn., into South Dakota, and into Nebraska and Wyoming. The track is described as the "DM&E west end."  "This portion of the CP network would be an attractive and highly viable opportunity for a low-cost operator," CP President and CEO E. Hunter Harrison said in the statement. "There is a strong long-term franchise here for an operator willing to maintain high-quality service and explore growth opportunities with existing and future customers." CP has made no decision on selling the track but wants to see what interest is there, Greenberg told the AP. The railroad did not announce a timeline for making a decision on the future of the track.

CP’s Lachine Intermodal Yard will soon close and will be transferred to St. Luc Yard nearby.  The two auto compounds will be consolidated into one are thereby possibly freeing up the area west of Meadowbrook which was once part of the golf course.  “Improving the railway’s operations will include cutting the company’s workforce by nearly a quarter over the next four years and effectively putting a “For Sale” sign on major parts of its network, CEO Hunter Harrison said in an  interview with the Finacial Post.

In the words of CPR Chief Hunter Harrison: "Now let me move to an area that people ask me all the time a lot. What's different about this model? What's going to be different about CP moving forward from other railroads? One of the most significant things that we're undertaking, we have undertook through the guidance of this operating team, which has been doing a wonderful job, is we have already closed 4 hump yards in our system in the first 5 months. Now think about, those of you who followed railroads for a while, think about the last time you heard of a hump yard being closed. You haven't heard of many. Think about the last time you heard of 4 being closed within a 5-month period of time. It just doesn't happen. And I get a lot of questions, probably more questions about this than anything else, why close the humps and what does it do for you? Well, number one, humps are effectively assembly lines. And those of you that don't understand or appreciate rail operations in a certain level of detail when you hear about a hump yard, a hump yard is simply an assembly line where we shove calls over a hill or let them go down a hump where they're uncoupled, flow freely through gravity and they're retarded by electric or pneumatic retarders and go through automatic switches in the classification tracks.

And to justify that you haven't a lot of volume. The best analogy I can give you maybe is that if Henry Ford was going to build 10 or 15 Model Ts a day, he would have never had an assembly line. But when you get up to 300 or 400 cars a day, an assembly line was necessary. These yards are -- were, and by the way they are at Alyth, which is our Calgary yard, which is really kind of boxed in where we have very little opportunity for growth there, with Calgary, Winnipeg, Toronto and Bensenville, which are our hump yard in the states, there in Chicago, are the 4 that have been closed.

And there's a number that people will debate a little bit, but somewhere in the neighborhood of you have volume of 1,400 to 1,500 cars a day to justify a hump. And we were down with all our humps in the neighborhood of 700 ,800 cars, 900 cars a day or less, and that's with some of the cars being humped more than once.

So this hump yard rationalization gives us a great deal of opportunity to save a lot of cost, to expedite the movement of cars and reduce the dwell time, the tension time, if you will, through the hump yards. I think you're going to hear some numbers tomorrow. I mean, don't take mine, take theirs, but somewhere in the neighborhood of $40 million to $50 million in what I would call direct cost and much, much more in indirect cost as a result of the closing of those yards.

When we looked at our Montréal operation, which had been really a hump yard style operation but without the “hump”.  Normally in a Hump Yard, you at least have to have 3 yards, (Arrival, Classification and Departure yard), where in a “flat yard” you could have 1 or at the most 2. But within that huge complex and about 60% of that track capacity today is not being utilized there. We have, I guess, 6 work centers. We have the freight operation, we have 2 separate auto compounds, we have what we call our expressway service, which is the only actual trailer on flatcar service that we have, and we have our Intermodal business.

Now that footprint, in the future what we will try to do is to take the auto compounds, the expressway, the Intermodal and all consolidate them in 1 yard in this 1 footprint, which will allow us to take one of the yards in the Montréal market that has a value of somewhere in the neighborhood of $40 million or $50 million and to convert that, monetize that into free cash flow and every yard that we're looking at in that regard has that potential. So the whole hump yard rationalization is an exciting part of this exercise.

One of the things we learned through that, which I had learned many times, is effectively what we did. And if you go back and look at those yards, they're mostly 1950s and '60s vetted yards. So obviously, we've outgrown the technology there. We -- our book of business is extremely different than it was then. At that time, if you look back, and I hate to be able to remember it, but it was pretty Intermodal effectively. We were still moving grain and 40-foot boxcars. And about 85%-plus of a typical railroads business need to be classified or sorted in what we refer to as blocks or classifications. Today, that's changed. If you look at CP today, with our book of business, we have about, including Intermodal as unit train operation, about 72%, 73% of our business does not need sorting or classifications. So once again, not the need for hump yards.  So what we did was we took people that were very good switchmen that could read a list, and even go back and date myself even further, people that are really into technology and SAP. We didn't have SAP then, we had a piece of chalk and we wrote on the side of the car where it went. But we turned those people into kind of robots with pushing buttons, and we decided to not to push the buttons anymore. We found out that we have to go through a lot of retraining with our people.

Now the other significant operating issue that I would bring up to you is that we are further doing, siding extensions. This year, we have -- we're completing, I think, our eighth siding with the length of 11 to 12,000 feet, which is going to give us the opportunity to further be more productive with our train sizes. Those have already increased both weight and length in the first 5 months about 10% round numbers. But these additional citings -- and we're taking a little bit of a different approach there. We're taking citings that what we call obsolete because they're not long enough to accommodate the size of trains today. And rather than let them sit in the ground and rust, we're picking up those surplus sidings, putting them together to make one large productive citing, which effectively says that the only thing that's capitalized in, in that exercise is just the labor to move the sidings."

Although CP hasn't officially killed plans for a 311-hectare intermodal terminal on the St. Lazare/Les Cèdres border, CEO Hunter Harrison's recent comments in December have placed it on life support.  Meanwhile, the opening of Highway 30 between Vaudreuil-Dorion and Chateauguay puts Florida-based CSX in a position to bite off a chunk of CP's traffic with its Valleyfield intermodal terminal and direct connections to the 20 and the 40.  Construction began this spring on CSX's $12 million intermodal terminal in Valleyfield's industrial park, the U.S. carrier's first Canadian yard. When it opens next year, the terminal is expected to generate 436 jobs and move 47 trucks per hour from 8 a.m. to 7 p.m. Monday through Friday. Most of the traffic will consist of containers moving between Montreal and northeastern U.S. ports like Philadelphia.  Media speculation about CP's Les Cèdres project has run rampant in the wake of Harrison's comments during a Dec. 4 investor call, but nervous CP spokespeople are confirming nothing. Industry analysts expect CP to divest itself of non-core assets.  The former CN CEO, headhunted from retirement by Pershing Capital head Bill Ackman to make CP profitable, never mentioned the 330-hectare Les Cèdres intermodal terminal. Instead, his comments focussed on plans to consolidate CP's Montreal operations. CP now operates facilities in Lachine and Cote St. Luc.  "Looks like CP will use St. Luc for its intermodal facility at least for the foreseeable future and sell the former Summerlea Golf Course in Lachine," said Green Coalition transportation critic Avrom Shtern. Since both CP and CN operate automobile shipment depots near Blue Bonnets, Shtern thinks it would make sense if CP kept that open as well. "It's all about cutting costs. It's their land, they don't have to buy it or wait for environmental impact studies," Shtern added.  Officially, neither the Vaudreuil-Soulanges MRC nor the CLD are closing the book on CP's Les Cèdres project, the cornerstone of an industrial policy to turn Vaudreuil-Soulanges into an inland port. Talks were continuing last week between the CLD and CP.

©CRO January 2013