Canadian Pacific Announces 2012 Capital Plan

Targeted Investments Part of Multi-Year Plan to Expand and Enhance the Efficiency, Flexibility, Capacity and Safety of the CP Rail Network

CALGARY, Jan. 17, 2012 /CNW/ - Canadian Pacific Railway Limited (TSX: CP)(NYSE: CP) today announced that, as part of the Company's Multi-Year Plan, CP will invest between $1.1 billion and $1.2 billion for infrastructure renewal, network enhancements and expansion projects in 2012. The 2012 Capital Plan will focus on strategic and targeted investments to improve service and increase network capacity while funding business development and initiatives with rapid return on investment.

Fred Green, CP President & CEO, said "At CP, we are executing our accelerated multi-year investment plan, to further improve service reliability, asset velocity, and operational efficiency, while expanding capacity to safely and efficiently support higher volumes.  We are confident that the investments we are making under our 2012 Capital Plan will allow us to achieve a low 70s operating ratio in the next three years."

Major investment categories include the following approximate amounts:

• $800 million to preserve existing capacities through replacement or renewal of depleted assets;
• $275 million for network capacity expansions, business development projects and productivity initiatives; and
• $50 million to address capital regulated by governments, principally train control.

Note on forward-looking information

This news release contains certain forward-looking statements relating but not limited to our operations, anticipated financial performance and business prospects.  Undue reliance should not be placed on forward-looking information as actual results may differ materially.

By its nature, CP's forward-looking information involves numerous assumptions, inherent risks and uncertainties, including but not limited to the following factors: changes in business strategies; general North American and global economic, credit and business conditions; risks in agricultural production such as weather conditions and insect populations; the availability and price of energy commodities; the effects of competition and pricing pressures; industry capacity; shifts in market demand; inflation; changes in laws and regulations, including regulation of rates; changes in taxes and tax rates; potential increases in maintenance and operating costs; uncertainties of investigations, proceedings or other types of claims and litigation; labour disputes; risks and liabilities arising from derailments; transportation of dangerous goods; timing of completion of capital and maintenance projects; currency and interest rate fluctuations; effects of changes in market conditions and discount rates on the financial position of pension plans and investments, including long-term floating rate notes; and various events that could disrupt operations, including severe weather, droughts, floods, avalanches and earthquakes as well as security threats and governmental response to them, and technological changes.  Other risks are detailed from time to time in reports filed by CP with securities regulators in Canada and the United States.  Reference should be made to "Management's Discussion and Analysis" in CP's annual and interim reports, Annual Information Form and Form 40-F.

Except as required by law, CP undertakes no obligation to update publicly or otherwise revise any forward-looking information, whether as a result of new information, future events or otherwise.

About Canadian Pacific
Canadian Pacific (TSX:CP)(NYSE:CP) operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency. Visit cpr.ca and see how Canadian Pacific is Driving the Digital Railway.