Canadian Pacific Railway to invest up to $1.2B in infrastructure as part of expansion and service improvement multi-year plan

CALGARY, AB, Jan. 18, 2012 (CNW) - Canadian Pacific Railway Limited today announced that, as part of the Company's Multi-Year Plan, CP will invest between $1.1 billion and $1.2 billion for infrastructure renewal, network enhancements and expansion projects in 2012. The 2012 Capital Plan will focus on strategic and targeted investments to improve service and increase network capacity while funding business development and initiatives with rapid return on investment.

Fred Green, CP President & CEO, said "At CP, we are executing our accelerated multi-year investment plan, to further improve service reliability, asset velocity, and operational efficiency, while expanding capacity to safely and efficiently support higher volumes. We are confident that the investments we are making under our 2012 Capital Plan will allow us to achieve a low 70s operating ratio in the next three years."

Major investment categories include the following approximate amounts:

• $800 millionto preserve existing capacities through replacement or renewal of depleted assets;
• $275 millionfor network capacity expansions, business development projects and productivity initiatives; and
• $50 millionto address capital regulated by governments, principally train control.

About Canadian Pacific

Canadian Pacific (TSX:CP.TO - News)(NYSE:CP.TO - News) operates a North American transcontinental railway providing freight transportation services, logistics solutions and supply chain expertise. Incorporating best-in-class technology and environmental practices, CP is re-defining itself as a modern 21st century transportation company built on safety, service reliability and operational efficiency. Visit cpr.ca and see how Canadian Pacific is Driving the Digital Railway.