CP Rail plans growth to meet demand

Canadian Pacific Railway Ltd. says it plans to focus on growing the company, after years of downsizing and layoffs, to meet the huge shipping demands of the booming Chinese market.

Speaking at an annual shareholders’ meeting in Calgary, CP Rail CEO Rob Ritchie said that as tonnages improve, CP will have to grow the company going forward, reports the Canadian Press.

CP Rail had reduced its workforce by more than 16% from 19,200 employees in 1999 to about 16,100 in 2003, and is still cutting 820 jobs as part of a three-year plan announced last June.

Along with a burgeoning Chinese market, CP Rail saw growth in many of its bulk segments including coal, sulphur and potash as well as a rebound of grain shipments after years of drought in Western Canada.

Ritchie said by mid-year, CP will have a better idea of its infrastructure expansion needs to meet demand.