Alstom to manage CPR’s Largest Repair Facility

by Canadian Shipper

Alstom has taken over the management and operation of Canadian Pacific Railway’s largest maintenance and overhaul facility, Ogden Shops, located in Calgary.

Under the deal, Alston acquires a western North American base for overhaul of rail equipment, and CPR foresees a reduction of expenses.

“We’re now in an excellent position to offer customers overhaul services for freight cars, locomotives and components in addition to our existing locomotive re-manufacturing, new freight car manufacturing and transit car rebuilding services located in Montreal and New York State. We expect to move forward quickly in developing new sources of business from our new base,” said Hamdi Conger, Senior Vice-President, ALSTOM Transport Service.

“The transfer to ALSTOM is a winning formula for everyone involved. It removes the problem of capacity under-utilization at our largest maintenance facility, and builds shareholder value. As a buyer of ALSTOM’s services at Ogden, CPR expects to see a positive impact on our maintenance and repair costs from economies of scale as business grows under the new operator,” said Robert Ritchie, CPR President and Chief Executive Officer.

Alstom will acquire the inventory and equipment at Ogden Shops, and will
have a long-term lease on the facility’s buildings. ALSTOM will provide CPR
with the equipment overhaul and repair services the railway had previously
performed on its own behalf at Ogden.

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