This article has been reprinted from the June 14 USDA Grain Transportation Report.
According to a June 7 press release, Canadian Pacific Railway (CP) announced plans to invest more than $500 million on new highcapacity grain hopper cars.
This translates into approximately 5,900 hopper cars over the next four years, of which 500 are expected to enter service in 2018.
The new hopper cars can hold 15 percent more volume and 10 percent more weight than existing cars, adding 16 percent more overall capacity to its grain unit trains.
CP has operations in the U.S., originating about 98,000 carloads of grain and oilseeds in 2017 (about 7 percent of all Class I operations in the U.S.).
The CP announcement follows the passage of Canada’s Transportation Modernization Act (Bill C-49), reported in last week’s GTR, which encouraged similar new investment by Canadian National Railway in its grain hopper fleet.