CALGARY, Alta. — Canadian Pacific Railway says it saw a boost in intermodal traffic in the first quarter as part of reaching a net income of $68 million.
That’s down $17 million from a record first quarter of 2000.
“We are very pleased that our revenues were up modestly in the first quarter, even though the economy was slowing and it was a tough winter for our operations,” said Robert Ritchie, president and chief executive officer.
This improvement was largely driven by an increase in bulk and domestic intermodal traffic. Grain revenues showed growth due to the strong demand for durum and wheat in the U.S.
Intermodal revenues also rose as domestic shipments for major retailers were stronger than last year’s quarter.
The strength in these sectors more than offset the impact of the revenue grain cap on Canadian grain and the softening economy on fertilizer, automotive and forest products revenues, the company explains.
“I’m particularly pleased about our continued growth in the service-sensitive intermodal business,” he continued. “This demonstrates once again that our investments in intermodal equipment and facilities were the right ones, and at the right time,” said Ritchie.