CP says that the improved income and operating ratio was driven by operating efficiencies and lower fuel prices.
CP’s Federal Railroad Administration-reportable (FRA) injuries in 2020 fell by 22% to a record-low of 1.11, from 1.42 in 2019. CP’s FRA-reportable train accident frequency also fell by 9% year-on-year to 0.96.
The railway reported revenue of $C 7.71bn for 2020, down 1% compared with 2019. However, revenue was $C 2.01bn for the fourth quarter, down 3% year-on-year. The fourth-quarter decline in revenues was due primarily to a 6.2% fall in revenue per wagonload due to a shift towards more intermodal freight, but was partially offset by a 3.7% increase in total wagonloads.
“Despite the continued Covid-19 impact, volumes steadily improved over the second half of 2020 and we saw revenue tonne-mile growth in the fourth quarter,” says CP president and CEO Mr Keith Creel.
“The uncertainty caused by the Covid-19 pandemic dramatically disrupted global supply chains. By leveraging our unique growth opportunities and applying our precision scheduled railroading operating model, CP is continuing to lead the industry. The momentum we’ve created in the fourth quarter will continue into 2021.”
The company also made notable purchases in 2020, most significantly the acquisition of the remaining 83.5% share of the 2.6km Detroit River Rail Tunnel, worth approximately $US 312m, from former partner Omers Infrastructure.
Looking at 2021, CP plans capital expenditure of $C 1.55bn, anticipating high single-digit revenue tonne-km growth.