Canadian Pacific announces new agreement for westbound coal

CALGARY, April 1 /CNW/ - Canadian Pacific Railway Limited (TSX/NYSE: CP) today announced it has reached a one-year agreement with Teck Coal Ltd. (Teck) for the transportation of metallurgical coal from their CP served mines in southeast British Columbia to Kamloops and Vancouver area ports for export. Contract terms are confidential.

Coal freight rates will be similar to current rates, however rates are volume based and should Vancouver export volumes fall short of target levels, a higher rate will be realized. During the term of this new agreement CP and Teck intend to enter discussions toward a longer term arrangement.

About Canadian Pacific:

Canadian Pacific, through the ingenuity of its employees located across Canada and in the United States, remains committed to being the safest, most fluid railway in North America. Our people are the key to delivering innovative transportation solutions to our customers and to ensuring the safe operation of our trains through the more than 1100 communities where we operate.

For further information: Media: Mike LoVecchio, Senior Manager - Media Relations, Canadian Pacific, Tel.: [phone], 24/7 Media Pager: [phone], e-mail: [email protected]; Investment Community: Janet Weiss, Assistant Vice President - Investor Relations, Canadian Pacific, Tel.: [phone], e-mail: [email protected]