Canadian Pacific Railway outsources IT to IBM

by Canadian Shipper

Canadian Pacific Railway and IBM Canada Ltd. have announced a seven-year outsourcing agreement under which IBM will operate and enhance the railway’s computing infrastructure. The companies said the arrangement is also intended to increase innovation in the railway’s computing environment, generating cost savings, higher productivity and enhanced services for rail customers.

IBM will aim to provide a cost-competitive, secure computing infrastructure that includes servers, storage and emergency recovery planning. The contract also enables CPR to benefit from technology and business processes and applications developed at IBM’s Centre for Transportation Innovation in Boulder, Colorado.

CPR’s mainframe and data facilities in Calgary and Toronto will migrate to IBM facilities in the two cities. Approximately 100 CPR employees, who perform work covered by the new agreement, will become IBM employees.

CPR relies heavily on its computing infrastructure to schedule all components of its operations. Computer applications map out complex interconnections of freight cars, locomotives, facilities, track and train crews. Automated traffic forecasting systems determine car routings and yard workloads using bypass and circuitry analysis software, and generate time-distance diagrams to examine track capacity.

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