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MAGAZINE VOLUME 20 | 2018 MAGAZINE CANADIAN PACIFIC MAGAZINE VOL. 20 2018 PAGE 14 EXPANDING CAPACITY Engineering crews have been busy all summer making infrastructure improvements to the busiest part of our network. PAGE 22 CELEBRATING CP HOME SAFE Recognizing the employees that are living up to their commitment of getting everyone home safe. PAGE 10 TRAINSFORMER Excavator to snowplow, brush cutter to tie collector, the newest addition to our maintenance of way fleet does it all for less.

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Page 1: CANADIAN PACIFIC MAGAZINE MAGAZINE€¦ · MAGAZINE VOLUME 20 | 2018 MAGAZINE CANADIAN PACIFIC MAGAZINE VOL. 20 2018 PAGE 14EXPANDING CAPACITY Engineering crews have been busy all

MAGAZINE

VO

LUM

E 20

 |  2018

MAGAZINE

CA

NA

DIA

N P

AC

IFIC M

AG

AZ

INE

VOL. 2

0 20

18 PAGE 14

EXPANDING CAPACITYEngineering crews have been busy all summer making infrastructure improvements to the busiest part of our network.

PAGE 22

CELEBRATING CP HOME SAFERecognizing the employees that are living up to their commitment of getting everyone home safe.

PAGE 10

TRAINSFORMERExcavator to snowplow, brush cutter to tie collector, the newest addition to our maintenance of way fleet does it all for less.

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04PUTTING CUSTOMERS FIRSTWe’ve turned a corner in our transformation journey and are charging ahead to deliver the best transportation solutions for our customers.

Visit canadianpacificmagazine.ca for behind-the-scene stories,

beauty shots and more!

 01 LETTER FROM OUR CEO

02 TURNING THE POWER ON CP’S GRAIN MOVEMENT

09 Q2 RESULTS

14 PREPARING FOR GROWTH

16 PHOTO JOURNAL

24 10 QUESTIONS

26 OUT AND ABOUT

28 FROM THE ARCHIVES

ON THE COVER - GOLDEN GUYS“ It was clear that pride runs deep in this shop. It came as no surprise that these guys are being recognized for keeping each other safe and looking out for one another.”

– Claire Dibble, Photographer

08A MASTER IN DISGUISEMeet culinary manager and chef, Andrew Carine, who wields a chef’s knife by day and teaches the art of Jeet Kune Do by night.

22CP HOME SAFE BEHAVIOURS IN ACTIONWe caught up with Toronto, Thunder Bay Ont., and Golden B.C., locomotive shops to celebrate their significant safety milestones and find out how they are getting home safe at the end of each shift.

10TRAINSFORMEREngineering Services’ new, bright yellow maintenance of way machines can perform a variety functions to maintain our right-of-way – for less.

C O N T E N T S

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FELLOW RAILROADERS,Together, we have gone through a lot over

the last five years. We have achieved great things along the way and have enabled the company – and in turn, the CP family – to be successful and industry leading.

It’s important to remember that this success did not come easily. More importantly, we must not forget that what got us here will not keep us here. Complacency and resting on our laurels cannot be the narrative running through the next chapter of the CP story. Instead, we must aim for a performance culture with respect and constructive tension as its driving force.

To be the best railroad in North America, we must strive for greatness day in and day out. We must stay true to our Foundations and to what got us here; knowing full well that we need to do more, we need to do better, and that the journey to greatness never ends.

We operate in a safety-sensitive environment where we must follow rules and regulations and be disciplined every minute of every day. CP is not a dot.com company where rules and behaviors are more relaxed. We are a proud, safe railroad committed to moving the North American economy forward; it’s been that way for more than 100 years.

Operating safely is part of our DNA and integral to our success. Discipline in every facet of what we do is fundamental for our collective bright future and respect for one another is a key part of that.

Respect is more than the act of giving someone attention or holding them in high regard. Respect, according to the author of The Respect Effect, Paul Meshanko, is “an active process of nonjudgmentally engaging people from all backgrounds. It is practiced to increase our awareness and effectiveness and demonstrated in a manner that esteems both us and those with whom we interact.” It is an active process. It is a process that needs to be practiced.

The respect we have gained in the marketplace was hard won. The respect we have earned amongst the CP family underpins our ability to perform. The respect for each other, our careers, families and this company needs to be maintained and enhanced.

Along with respect, there is a need for constructive tension. Any high performing organization needs constructive tension to challenge the status quo and reach for greatness. When things are going well, we must challenge each other to do better. Again,

CULTURE, RESPECT, WHY AND THE WAY FORWARD AT CP

what got us here will not keep us here. Without respect and constructive tension we will never be more than mediocre. Mediocrity is not an option for CP. We can do better.

To do better, we must always ask “why?” This is a powerful question and a question that needs to be asked about every process, action or expense. We need to run the company – and each individual area – with the same discipline and rigor that we run our own budgets at home. That is the expectation of our shareholders; after all, it is their money. Wasting money, wasting time, and wasting resources is the result of not asking “why” and it’s a recipe for mediocrity. Asking “why” helped us get here and continuing to ask that powerful question will help keep us here.

With your help, I look forward to leading us on this continued quest to be the best.

Respectfully,

Keith Creel,President and CEO

WE MUST AIM FOR A PERFORMANCE CULTURE WITH RESPECT AND CONSTRUCTIVE TENSION AS ITS DRIVING FORCE

—1

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TURNING THE POWER-ON CP’S GRAIN MOVEMENTIMPROVED CONSISTENCY. IMPROVED RELIABILITY. IMPROVED EFFICIENCY. THESE WILL BE THE PHRASES HEARD ACROSS THE NETWORK AFTER WE INTRODUCE BRAND NEW HOPPER CARS TO OUR FLEET LATER THIS CROP YEAR.

—2 VOL. 20 | 2018

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While CP is already an industry leader in grain movement, with a roster of satisfied customers across Canada and the U.S., we plan to invest half a billion dollars over the next four years in new hopper cars. As crops continue to yield more grain (on average, crop production has grown by approximately 2 percent annually) and demand for other commodities across our network continues to grow, the new hopper cars will allow us to serve the growing needs of our grain customers while meeting the demand of other commodities.

Approximately 5,900 new hopper cars will replace the legacy fleet, which are in need of replacement. The new lighter, shorter hopper car design, combined with our migration toward an 8,500 foot grain train model, will create upwards of 40 percent more grain capacity with each existing train start.

“We will have one of the best and newest fleets of hopper cars in North America. We know that our customers are already proud to ship their grain with us, but this new model will make our business even more competitive,” said Murray Hamilton, Assistant Vice-President, Sales and Marketing, Grain and Fertilizer. “At the end of the day, running the same amount of trains with a higher capacity supports efforts to drive a growing market share, both for us and for our customers.”

Not only will the new hoppers enhance CP’s fleet, they will further standardize the fleet from a common component perspective. Brad Robertson, Assistant Vice-President, Mechanical Car is excited by the opportunity to streamline the inventory needed to maintain and repair the aging legacy fleet. “What age means for our business is increased maintenance and repair costs. Over time, the environment and operations have taken a toll on the railcars and any defect that prevents a car from being in service slows down our network.”

Newer equipment means fewer bad orders, and with the new higher-capacity cars, CP will be able to better optimize assets while moving more product. New hopper cars coupled with CP’s 8,500 foot high efficiency dedicated train model will add significant capacity for the movement of grain, potentially freeing-up resources to move additional customer product

across our network.In addition to new cars and longer trains,

additional efficiency opportunities also exist. “How we operate our train model with the new hoppers is essential to driving efficiency across our network. We plan on doing this by employing the power-on model,” said Murray, referencing having locomotives ready to move product in Canada and the U.S. as soon as the cars are filled. “At its core, and with our customer’s support, the power-on model will minimize the dwell time from empty placement to the pull of loads at the country elevators and similarly reduce the dwell time the hopper takes to unload at the port terminals and return back in the country. This is truly a win-win situation.

Our customers will see greater reliability and performance from our power-on grain product and we will benefit from an enhanced cost-management perspective.”

As we enter another crop year and crop production continues to grow across North America, there are bound to be challenges and opportunities; but whether an employee is driving the train, marketing to grain customers, maintaining the new fleet or ensuring the power is ready to go, they will all feel pride in enabling a world-class grain supply chain.

“ WE KNOW THAT OUR CUSTOMERS ARE ALREADY PROUD TO SHIP THEIR GRAIN WITH US, BUT THIS NEW MODEL WILL MAKE OUR BUSINESS EVEN MORE COMPETITIVE”

– MURRAY HAMILTON, Assistant Vice-President, Sales and Marketing, Grain and Fertilizer

—3

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—4 VOL. 20 | 2018

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“We’re in a really great stage of our evolution,” said John Brooks, Chief Marketing Officer. “We’ve built a solid foundation, rooted in our precision scheduled operating model and are now developing and introducing products and services that will enhance the customer experience and help them meet new markets – it’s all about coming up with innovative solutions that will help our customers grow in lockstep with us.”

COLLABORATE AND LISTENOn June 21, we hosted our second Customer Advisory Panel of 2018, inviting a group

of about 20 customers from multiple lines of business to the E. Hunter Harrison campus in Calgary to discuss their customer experience. Split into several work groups, customers engaged in round table discussions and white boarding sessions to help us understand where we can make adjustments to our customer tools.

“We are engaging in open and honest dialogue with our customers to find out how we can improve their experience when doing business with CP,” said Pam Arpin, Assistant Vice-President, Customer and Corporate Services. “These discussions, largely focused on our Customer Station portal, will help us build the roadmap and strategy for investment for this important customer tool.”

Work groups included a mix of carload and intermodal customers to foster robust discussions and help us understand exactly how different types of customers interact with our tools. Intermodal customers use containers to transport their goods and have different service requirements than carload customers, who use other types of railcars such as hoppers, tankers or boxcars and are shipping single car movements as well as bulk commodities billed as unit trains.

PUTTING CUSTOMERS FIRST

It’s all about coming up with innovative solutions that will help our customers grow in lockstep with us.

– John Brooks, Chief Marketing Officer

WE’VE TURNED A CORNER IN OUR TRANSFORMATION JOURNEY AND ARE CHARGING AHEAD TO DELIVER THE BEST TRANSPORTATION SOLUTIONS FOR OUR CUSTOMERS. WITH A PROVEN OPERATING MODEL AND THE SHORTEST ROUTES IN KEY MARKETS, WE ARE LASER-FOCUSED ON WORKING COLLABORATIVELY WITH OUR CUSTOMERS TO UNDERSTAND THEIR NEEDS, DEVELOPING SOLUTIONS TO STRENGTHEN THE SUPPLY CHAIN AND HELPING OUR CUSTOMERS CONNECT WITH NEW MARKETS.

—5

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“The event was valuable as a shipper to have a voice in how we can effectively and efficiently interface with CP in a value-add manner for all,” said Lara H. Wehbe, Shell Canada Limited’s DS Trading and Supply Procurement Manager. “It was interesting to see that there were common threads between shippers’ needs and a keen interest to share openly and honestly to fuel continuous improvement.”

Disscussions were organized around four topics, following the lifecycle of a shipment – Plan, Ship, Manage and Pay. Each smaller group was given an opportunity to brainstorm suggestions on how we can improve functionality and resources available to customers at each stage of the shipment lifecycle. Coming together as a larger group, suggestions and priorities were discussed. The next step is building a multi-year roadmap with timelines to address major pain points.

“It was an exciting opportunity for us to be a part of the customer strategy session,” said Carla White, Mosaic’s Transportation Manager. “A lot of information and ideas were shared and we appreciated the chance to collaborate with other customers. This session showed us CP is listening to its customers. We can’t wait to see the new tools and user-friendly capabilities that come out of this session.”

The customer experience is heavily influenced by the ease of use and capabilities of Customer Station - an online portal where our customers manage their shipments. With enhancements to the Customer Station tool already underway, customers should begin to see some functionality improvements by the end of 2018.

“It was a very smart and strategic move for CP to host this session with customers,” said Marty Cielen, Richardson International Limited’s Director, Rail Transportation. “Customers value timely and effective interaction with CP systems in the execution of business. This type of interactive investment in Customer Station will improve the speed, ease and ultimately the volume of business we can conduct with CP. All with likely less overall administration, allowing both CP and customers to focus more effort on business growth and development. It was a great session, well appreciated. Looking forward to the next steps!”

CREATING CHOICEAcross all lines of business we have been looking for ways to give customers more options, whether it’s a new service or equipment, and we’ve made thoughtful investments to do so.

Service

• We introduced seven-day-a-week service from Vancouver to Detroit – this daily service can cut transit times by as much as 48 hours compared with our nearest competitors.

• We implemented Portal Live-Lift at our Portal, North Dakota border crossing which handles our intermodal traffic moving between Western Canada and the U.S. Midwest. We are now able to lift single containers off of trains for inspection by customs authorities rather than holding-up entire intermodal railcars – which can carry up to 15 containers. This eliminates delays to containers not flagged for inspection.

• CP Transload Vancouver offers direct access to port facilities, providing transload services for pulp, lumber and merchandise products. Direct rail access to the port eliminates costly dray moves and gate charges at ports.

• Our Dedicated Train Program gives customers greater clarity and control of their car supply to manage their supply chain. Customers control their own train assets for a period of 12 months or more.

Across all lines of business we have been looking for ways to give customers more options, whether it’s a new service or equipment, and we’ve made thoughtful investments to do so.

“ A lot of information and ideas were shared and we appreciated the chance to collaborate with other customers. This session showed us CP is listening to its customers.”

– Carla White, Mosaic

—6 VOL. 20 | 2018

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Assets

• We purchased 41 brand new generator sets (gensets) to complement CP TempPro’s growing fleet of refrigerated and heated containers, one of the largest and most advanced in the industry. One genset can power up to 17 temperature-controlled containers.

• We invested in over 400 new 53 foot SlimLine containers for temperature-controlled products. The SlimLine’s new design allows for 30 pallet positions, versus 28 in standard models, a seven percent increase from our 53 foot reefer fleet. The containers also employ a greener refrigerant, which decreases risk of environmental impact over its predecessor.

• We plan to invest a half-billion dollars over the next four years in new, highly efficient grain hopper cars. The new design can handle 15 percent greater volume and 10 percent greater load over government hoppers. We plan to have more than 500 of these new hopper cars in service before the end of 2018.

• We are in the process of modernizing 110 locomotives to improve service reliability. This initiative strips down 20 year old units and rebuilds them with the latest technology and parts – a process that provides the fuel efficiency and productivity of a new locomotive, but with a lesser price tag.

With something for everyone, these services and products provide choices for customers’ fluctuating demands and assist with improving the overall supply chain.

NETWORK STRENGTHS In our railyards, on our trains and at our auto compounds, intermodal facilities and transload centres we have room to grow and want our customers to grow with us.

“Our company and our customers have benefitted from our continued focus on operations,” said Jordan Kajfasz, Managing Director Sales and Marketing International/Automotive. “With increased fluidity, we have capacity for our automotive and international intermodal customers across our network. When customer demand grows, we’ll be ready.”

Every product and service improvement is made possible by CP employees’ dedication to providing the best service possible for our customers. Every employee is responsible for keeping our customers’ products moving safely and efficiently throughout our network. Every switch pulled, every clearance issued, every repair made, every interaction impacts how well we perform for our customers and ultimately affects our future.

“We’ve come so far and yet it feels like just the beginning,” said John Brooks. “As one of the nearly 13,000 members of the CP family who work in lock-step to move the company forward, I can tell you we are excited about the products we are bringing to market and see much opportunity on the horizon. Our customers can rest assured that we are listening, we are energized and we are committed to providing them with the best service possible.”

In our railyards, on our trains and at our auto compounds, intermodal facilities and transload centres we have room to grow and want our customers to grow with us.

—7

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Usually wearing his pristine bright white chef uniform as culinary manager and chef for the Royal Canadian Pacific (RCP), you wouldn’t know Andrew Carine wears a black belt in his spare time. He holds a 6th degree black belt in the martial art of Jeet Kune Do (JKD), trained under the lineage of famous martial artist, Sijo Bruce Lee. Canadian Pacific Magazine sat down with Andrew to talk about how a mild-mannered chef became an internationally recognized martial artist.

GREAT FOOD MAY NOURISH THE BODY, BUT JEET KUNE DO FEEDS

ANDREW CARINE’S SOUL.

A MASTER IN DISGUISE

Born in the United Kingdom, Andrew started martial arts at the age of eight and quickly grew passionate about the art. After completing culinary school in London and working at prestigious hotels such as the Dorchester and Savoy, Andrew wanted a change of pace and moved to Bermuda. There, he met a martial arts instructor, Prof. Gary Dill, who had been a student under Sifu James Yimme Lee, one of only three people certified to teach JKD under the famous martial artist Sijo Bruce Lee. He quickly became enthralled with Jeet Kune Do.

The philosophy behind the art is one of self-expression coupled with combative fighting skills using kicks, punches, grappling and even elements of fencing for footwork. The motto behind Lee and JKD is “Using no way as a way, having no limitation as limitation.”

Andrew has been involved with martial arts for over 45 years and has 27 years of training under Dill, earning his 6th degree black belt during this time. He has also personally trained with Guro Dan Inosanto and Sigung Taky Kimura, the two others certified by Bruce Lee, as well as Sifu Francis Fong and Guro Daniel Lonero. In 2011, Andrew was inducted into the Martial Arts Hall of Fame in Orlando, Florida as a JKD instructor and won the prestigious Instructor of the Year award.

What makes this achievement so remarkable is that while he was working towards his black belt, Andrew was also working his way up the ladder in the culinary world eventually certifying as a Chef de Cuisine; the highest-ranking chef title awarded in Canada. The process to becoming Chef de Cuisine is similar to what you might witness on TV shows such as Top Chef or MasterChef, but the process is much more arduous and exacting (and, shall we say, realistic). Two years of practice culminates in a high stakes live creation in front of a panel of culinary judges. CP was lucky to gain Andrew three years ago to manage the kitchen for the RCP and he now oversees all things food-related for the CP Training Centre, the 1881 Lodge and Ogden Station cafeteria, all at CP headquarters.

Not one to rest on his laurels, Andrew recently started a small Jeet Kune Do school – Manx Martial Arts Academy – in his basement gym. Andrew’s heritage is from the Isle of Man, where the Manx heritage and language is a unique part of the Celtic island state. The motto of Manx culture is, “Whichever way you throw me I shall stand.” This statement holds

true in many facets of life and is especially appropriate for the study of JKD.

How do you become a student of Manx Martial Arts Academy? It’s not easy. In fact, Andrew has only a handful of students and to train with him, you must meet with Andrew in-person to discuss your ambitions. Andrew strongly believes in the philosophy of never forget where you come from, never forget the people who helped to get you where you are today, and acknowledge the source of your success because without foundations you have nothing. If you, like him, have this same outlook and believe in the core values of Jeet Kune Do, only then might you be accepted to train.

Don’t expect to reach a black belt in just a few years, however. It takes many years of dedication to become certified. Just ask Andrew’s wife Regina. She accompanied him earlier this year to E. Hunter Harrison campus to help demonstrate Jeet Kune Do at a Lunch and Learn. She is currently at Level 9 of a total 12 levels – well on her way to her black belt, but even this has taken seven years.

From culinary arts to martial arts, Andrew is a proven master.

—8

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$1.75 BILLION $1.64 BILLION Q2 2017

INCREASE OF 140 BASIS POINTS

64.2% Q2 2018 62.8%* Q2 2017

“ Overall, it was a good quarter that sets the franchise up well for the remainder of 2018 and beyond. Our quarterly performance was impacted by service interruptions related to labour negotiations and strike notices. However, we were able to reach tentative long-term agreements with both the Teamsters Canada Rail Conference and the International Brotherhood of Electrical Workers which will serve the CP family, customers, shareholders and the North American economy well for years to come.” KEITH CREEL, PRESIDENT AND CEO

FRA TRAIN ACCIDENT FREQUENCY (per million train miles)Decrease of 32% 0.8 Q2 2018 vs. 1.18 Q2 2017

FRA PERSONAL INJURY RATE (per 200,000 employee hours)A 7% decrease from 1.53 Q2 2017

REVENUE PERFORMANCE (CDN $)

SAFETY

OPERATING PERFORMANCE

OPERATING RATIO

7%IMPROVEMENT

7,312 FEET

9,056TONS

6.7HOURS

AVERAGE TRAIN WEIGHTIncreased by 4% from 8,695 tons in Q2 2017

AVERAGE TRAIN SPEEDDecreased by 1.9 miles per hour from 23.3 miles per hour in Q2 2017

TERMINAL DWELL TIMEIncrease of 0.9 from 5.8 hours in Q2 2017

AVERAGE TRAIN LENGTHIncreased by 174 feet from 7,138 feet in Q2 2017

21.4MPH

140BASIS

POINTS

Q2 2018EARNINGS RESULTS

1.43

* 2017 comparative period was restated from 58.7% to 62.8% to reflect the adoption of the new accounting standard for the presentation of net periodic benefit recoveries, which is discussed further in CP’s Q2 2018 Quarterly Report on Form 10-Q.

—9

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CP’S NEW MAINTENANCE OF WAY MACHINE

TRAINSFORMERMore than meets the eye, Engineering Services’ new maintenance of way machines look like something out of a Transformers movie. Powered by re-purposed GP-38 locomotives and affably dubbed “Trainsformers,” these bright yellow machines are the Swiss Army knives in Engineering’s toolbox of work equipment machines. Each machine comes equipped with tri-pack well cars, a flat deck car, control cab, a mobile excavator with multiple attachments and so much more. These machines are capable of performing a variety functions to maintain our right-of-way. In the past, we rented similar types of machines at a significant cost so we set out to build our own one-of-a-kind units, reducing costs by utilizing existing assets and tailor made to serve a variety engineering functions.

“We didn’t just set out to replicate what was out there,” said Matt Foot, General Manager Capital Planning. “We took the time to design these units so that they fulfill all current needs with options to expand in the future. They are extremely versatile machines and will be a key tool in Engineering moving toward and maintaining a clean and orderly right of way from fence to fence.”

To reduce costs we enlisted three older GP-38 units (inspected and validated for condition) for power and three used flat cars for the ‘B’ end

control cab. We contracted Greenbriar to supply nine tri-pack well cars and Brandt Tractor for three John Deer 245 G Zero turn Excavators, with attachments.

“We did a cost analysis on existing vendor rates versus estimated cost to construct and operate these units,” said Matt. “The analysis was very favourable and exceeded CP’s internal guidelines on payback. In addition, we have been expanding our use of this type of equipment in our material distribution and pickup strategy and therefore were looking at ways to do this in the most cost effective manner.”

The multiuse Trainsformer’s mobile platform provides the ability to safely and efficiently handle engineering material such as cross ties, tie plates, spikes, rail, and any other materials that it can reach. Its versatile design allows for a self-contained power unit and car configuration that’s able to work independently across the entire rail network executing Engineering Works programs and deployment for emergency work.

With its unique design and diverse functionality the Trainsformer is an exciting addition to CP’s work equipment fleet. Flip the page to discover all the unique functions this maintenance of way machine can perform!

—10 VOL. 20 | 2018

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MORE THAN MEETS THE EYE, ENGINEERING SERVICES’ NEW MAINTENANCE OF WAY MACHINES LOOK LIKE SOMETHING OUT OF A TRANSFORMERS MOVIE.

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CP’S NEW MAINTENANCE OF WAY MACHINE

TRACK LIGHTSWell cars feature recessed LED lights along the sides.

TRAINSFORMERMore than meets the eye, Engineering Services’ new maintenance of way machines look like something out of a Transformers movie. Powered by re-purposed GP-38 locomotives and affably dubbed “Trainsformers,” these bright yellow machines are the Swiss Army knives in Engineering’s toolbox of work equipment machines. Each machine comes equipped with tri-pack well cars, a flat deck car, control cab, a mobile excavator with multiple attachments and so much more. These machines are capable of performing a variety functions to maintain our right-of-way. In the past, we rented similar types of machines at a significant cost so we set out to build our own one-of-a-kind units, reducing costs by utilizing existing assets and tailor made to serve a variety engineering functions.

“We didn’t just set out to replicate what was out there,” said Matt Foot, General Manager Capital Planning. “We took the time to design these units so that they fulfill all current needs with options to expand in the future. They are extremely versatile machines and will be a key tool in Engineering moving toward and maintaining a clean and orderly right of way from fence to fence.”

To reduce costs we enlisted three older GP-38 units (inspected and validated for condition) for power and three used flat cars for the ‘B’ end

control cab. We contracted Greenbriar to supply nine tri-pack well cars and Brandt Tractor for three John Deer 245 G Zero turn Excavators, with attachments.

“We did a cost analysis on existing vendor rates versus estimated cost to construct and operate these units,” said Matt. “The analysis was very favourable and exceeded CP’s internal guidelines on payback. In addition, we have been expanding our use of this type of equipment in our material distribution and pickup strategy and therefore were looking at ways to do this in the most cost effective manner.”

The multiuse Trainsformer’s mobile platform provides the ability to safely and efficiently handle engineering material such as cross ties, tie plates, spikes, rail, and any other materials that it can reach. Its versatile design allows for a self-contained power unit and car configuration that’s able to work independently across the entire rail network executing Engineering Works programs and deployment for emergency work.

With its unique design and diverse functionality the Trainsformer is an exciting addition to CP’s work equipment fleet. Flip the page to discover all the unique functions this maintenance of way machine can perform!

The fleet of three MOW trains are capable of applications that include, but are not limited to:• Ditching• Pole line removal• Positive Train Control (PTC) foundation installation

(both helical or dig-in styles)• Tie pick-up and distribution• Other track material pick-up and distribution• Tree thinning

• Tree removal• Brush cutting• Snow removal• Ballast and rip rap distribution• Bridge deck removal• Rail pick-up and processing (rail shear)• Crossing removal and re-ballasting

ROTOTILT R6 ROTATOREach boom has a Rototilt R6 rotator and quick coupling attachment.

WELL CARSThese well cars provide a place for track waste and materials aboard the MOW trains.

CUSTOM BRIDGE BARSTo allow the excavator to travel across the length of the train it is equipped with removable custom bridge bars between the well cars.

STORAGE + MOREThe B-Unit is capable of controling the head locomotive and features the same cab controls. It also houses a generator that supplies auxiliary power and is equipped with an Incinolet electric incinerating toilet, a workshop and storage to accomodate all the MOW excavator attachments.

EXCAVATOR & ATTACHMENTSThe John Deer 245GLC Excavator, modified with undermount stabilizer clamps and 4140 heat treated stress relieved carraige wheels, rides the length of the train and can be fashioned with one of nine attachments:

• Clean up bucket• Dig bucket• Clam shell bucket• Magnet• Timber grapple

• Rail grapple • Rail cutter• Brush cutter• Snow blower

POWER UNITThe Power Unit packs 2000 horsepower, features 6' snow plow wings on either side and can be remote controlled with a LAIRD belt pack.

MW9507-10 | MW9507-20 | MW9507-30TRAINSFORMER

—10 VOL. 20 | 2018

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PREPARING FOR GROWTH

EXPANDING CAPACITY IN THE WESTERN CORRIDOR

—14

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THE CALGARY TO VANCOUVER MAIN LINE, OR WESTERN CORRIDOR, IS THE BUSIEST PORTION OF CP’S NETWORK, AVERAGING APPROXIMATELY 30 TO 40 PERCENT OF THE COMPANY’S DIRECT REVENUES.

The route plays a vital role in providing CP with competitive access to key markets by supporting large volumes of our intermodal traffic and the transport of various commodities such as coal, grain and potash to and from the Port of Vancouver.

With much of the track crossing the Canadian Rockies, the western corridor is some of the most challenging territory to operate in, due to its steep hills, deep valleys, harsh winter weather conditions and numerous tunnels and bridges along the way.

“The Calgary to Vancouver main line is arguably the most important section on the entire network, because of its significant revenue generation for CP,” said Brett Larocque, Director of Capital Planning.

“It is also an area where we typically see the most accelerated wear on the system, due to its high traffic density and some of the heaviest tonnage being hauled daily over mountainous terrain, with steep grades and high curvature.”

To maintain CP’s competitive advantage and prevent service disruptions in this part of our network, the company makes annual investments into upgrading and modernizing the corridor’s infrastructure, equipment, systems and facilities.

Total capital expenditures in 2018 for this portion of the main line are primarily allocated towards two main categories.

The first is basic replacement spend, which includes track, structures, and signals and communications upgrades and replacement work. The second category focuses on network enhancements, which includes planning and executing on initiatives that seek to expand network capacity, optimize operational efficiency and to sustain our future growth.

INFRASTRUCTURE UPGRADES“Train delays increase CP’s cost of doing business,” said Matt

Foot, General Manager Capital Planning. “Infrastructure reliability plays a major factor in helping us prevent such issues, and in getting our freight to its destination safely and on time.”

Basic replacement track and infrastructure upgrades for various locations across this vital portion of our network are well underway for 2018.

Work includes replacing 26 miles of ballast and just over 46 track-miles of new rail, replacing roughly 57,000 cross ties and 17 turnouts,

eliminating 2,600 joints and doing 23 miles of track gauging. Track and structures maintenance is also underway for various

bridges, tunnels and sheds, culverts and road crossings, in addition to signals and communications systems upgrades.

“A significant project for us this year is the upgrade work currently underway in one of our largest and busiest tunnels across our system,” said Howie Soliman, Assistant Chief Engineer B.C. Track, referring to the Connaught Tunnel.

The Connaught Tunnel is located in CP’s Mountain subdivision and spans five miles. The work is scheduled to take place over the next two years and will include rail, ties and ballast replacement.

BUILDING CAPACITYThe western corridor, with its high traffic volumes, is one of our

busiest routes. As our train lengths continue to increase as they have done over the past few years, this route will only get busier and need to handle this trend towards more, longer trains.

To accommodate current and future growth, network infrastructure improvements on the corridor’s main line are critical.

This year’s focus to increase train-meet flexibility – locations on the network where two longer trains can meet and pass one another – and reduce train wait times, is intended to improve subdivision time delays and overall network capacity. By extending sidings to accommodate longer trains, our goal is to achieve faster transits and reduce congestion in the corridor.

Keith siding, already in service since May, was increased by nearly 4,200 feet. Longer trains can now meet and pass one another just minutes west of Calgary, Alta., instead of crowding-up Calgary’s busy terminals.

Situated in another high traffic area, Cambie siding on the Shuswap subdivision was extended by almost 5,000 feet. This extension will allow for significant reductions in time delays for train meets and create more flexibility in recovering transit times in the event of network disruptions or planned maintenance work.

“We are building for our future and projects such as these are carefully selected each year to address expansion needs,” said Kelly Storozuk, Director Network Capacity and Infrastructure. “The work we are doing in the western corridor is part of our multi-year network strategy aimed at building and improving our system’s overall resiliency, in order to allow CP to reduce costs and increase capacity.”

Canadian Pacific Magazine caught up with a work crew on the Mountain subdivision near Golden, B.C. to see a new rail program in action.

—15

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MEN OF STEELSteel gang removing anchors near Golden, British Colombia.

—16 VOL. 20 | 2018

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BUILDING FOR THE FUTURE

STEEL RIBBONEach year, CP invests in network infrastructure to enhance our overall network capacity and drive operating efficiency. Basic replacement work such as rail, ties, ballast, and signals upgrading, ensures the safety, reliability, and operating performance of our system.

—17

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BUILDING FOR THE FUTUREMajor 2018 initiatives to aid with reducing congestion in the western corridor, are to increase train-meet flexibility and decrease train wait times, by extending sidings to accommodate longer trains at critical locations along the main line. —

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STEEL FRONTIERPeople and machines working safely and quickly alongside one another. In 2018, CP will be replacing a combined total of 46 miles of track on the busiest portion of our network, the Calgary to Vancouver main line.

ON THE JOBAbove: Ryan Haveman, Machine Operator Group 4 preparing for a productive day at work.

—19

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DAILY GRINDDue to its high traffic density and mountainous terrain, CP’s western corridor sees some of the most accelerated track wear on the system.

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Nominate a co-worker for the 2019 CEO Awards for Excellence. Do you work with an exceptional railroader? Someone who consistently goes above and beyond the call of duty to exemplify CP’s five Foundations? Don’t let someone who has gone to extraordinary lengths to produce results for CP go unnoticed. Winners enjoy a beautiful weekend for two in sunny Florida, where their contributions are celebrated.

Nomination deadline October 31, 2018 Nomination forms can be found on CP Station > Employees > Recognition

Need help finding the right words to describe your co-worker? Contact [email protected] or call 403-319-6389 for assistance.

They don’t work for recognition, but their work deserves to be recognized.Rupinder Singh Sekhon, Track MaintainerWinner of 2018 CEO Award for Terminal of the Year - Vancouver

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CP LOCOMOTIVE SHOP, TORONTO, ONT.627 DAYS FRA INJURY FREE AT JULY 1

James Dawson, Diesel Mechanic and Health & Safety Committee member, has worked at the shop for the past seven years.

“We already practiced a lot of the concepts presented by CP Home Safe long before the program rolled out,” said James. “However, the new initiative and the renewed safety commitment to one another, makes us more vigilant in working safely, implementing it alongside our co-workers.”

The program emphasizes the significance of employee behaviours, such as empowering novice employees to point out potential dangers to senior employees or management.

Lead hand diesel mechanic, Trevor Richardson summed up Toronto’s success, pointing out that he looks out for his fellow employees as he would after his own family. Trevor is well-known at the shop as someone who works hard and also smart. He usually works on rotation with new apprentices, spending quite a bit of time showing them how to get their job done the safest way possible.

“Before we start a job we go through a one-on-one safety briefing again. I review the risks and controls and go through our tasks to ensure we are all on the same page and everyone understands what we are trying to achieve,” said Trevor.

“For example, say we are lifting an engine with a crane that day, we would take time to write down the risks and how we go about achieving the task safely. Clear communication is key and no one here at the shop is immune to CP Home Safe.”

It is apparent when you engage with any employee at the Toronto Locomotive Shop that they work hard to create a safety culture rooted in accountability and teamwork. Their impressive milestone is no coincidence and is based on partnership and mutual respect.

BEHAVIOURS IN ACTION

CP HOME SAFE WAS INTRODUCED ACROSS OUR SYSTEM IN NOVEMBER 2016. THE GOAL OF THE PROGRAM IS TO ELIMINATE COMMUNICATION BARRIERS AND EMPOWER EMPLOYEES TO SPEAK UP WHEN THEY SEE SOMEONE OR SOMETHING THAT PUTS PEOPLE AT RISK.

THE IMPACT OF CP HOME SAFE IS APPARENT IN EMPLOYEES’ POSITIVE ATTITUDES WHEN ASKED ABOUT THE PROGRAM, THEIR ABILITY TO EXPLAIN EASILY THE HOME SAFE PILLARS, AND IN THE SAFETY MILESTONES ACHIEVED BY LOCATIONS ACROSS OUR NETWORK.

AS OF JULY 1, 2018, THREE SHOPS STAND APART HAVING CELEBRATED CLOSE TO OR OVER 500 DAYS WITHOUT A REPORTABLE FEDERAL RAILROAD ADMINISTRATION (FRA) INJURY.

—22—22 VOL. 20 | 2018

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SAFETY STARS Congratulations to all the shops featured, Thunder Bay (A) , Toronto (B) , Golden (C) .

CP MECHANICAL FACILITY, THUNDER BAY, ONT. 471 DAYS FRA INJURY FREE AT JULY 1

A self-sufficient, experienced group that has grown to be like family over the years is how Maurice Regaudie, Manager Mechanical would describe his team of largely veteran CP employees.

Maurice, who recently relocated to Thunder Bay, Ont., from Golden, B.C., was quick to notice his new colleagues had low tolerance for unsafe behaviour. Their impressive productivity numbers told him they were a responsible group who got the job done, while looking out for each other.

The majority of employees at the shop have over 20 years of experience, and although they have worked together for a long time practicing safe behaviour, they quickly adopted the commitment of CP Home Safe. People saw value in the expectation the program places on everyone to stand up and say something if they notice unsafe actions or behaviour.

“One example I observed personally, was when a senior employee noticed a relatively newer employee cross a track out in the yard without looking in both directions,” said Maurice. “In this case, Home Safe provided a safe space for the more senior employee to talk about the importance of not relying solely on peripheral vision and to look both ways; even though the other colleague may be completely familiar with their surroundings.”

“This was done in an educational manner, allowing the person to think about their actions, without putting them on the spot,” he said. “That is one of the great things about CP Home Safe – it allows us to learn from each other, improve our work through respectful communication, while keeping safety top of mind both on the job and at home.”

LOCOMOTIVE SHOP, GOLDEN, B.C.777 DAYS FRA INJURY FREE AT JULY 1

A relatively new locomotive shop, Golden boasts a young team of CP employees. Diesel mechanic and Health & Safety Committee member Daniel Van Diest and mechanical supervisor Derek Penno, however, will tell you that this is part of their strength as a team and a key “ingredient” to their safety achievements.

“Everyone at this location came from somewhere else in the last four years. We have seen a lot of changes in our team and it’s something we have come to appreciate as a strength,” said Daniel.

Derek agrees. “When it comes to safety and Home Safe there is definitely a lot of peer-to-peer learning. We want to ensure new employees get enough guidance and training so they can do their jobs safely. We learned how to adapt quickly to new people joining our team and have become extremely good at communicating with one another and helping each other out.”

A busy yard that handles a lot of servicing, the Golden Locomotive Shop is a perfect example of a place where everyone works together as a cohesive team, to both remove workplace safety risks and provide each other with feedback in order to get the job done safely and efficiently.

—23C

B

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RORY THOMPSON, A SCOTSMAN WHO CARRIES WITH HIM A DISTINGUISHED 11-YEAR BRITISH ARMY CAREER, IS NOW SERVING AS CP’S MILITARY RELATIONS MANAGER. RORY IS PROOF VETERANS OFTEN FIND A FULFILLING SECOND CAREER AT CP, BUT THE REASONS FOR THIS RUN DEEPER THAN VETERANS’ QUICK ACCLIMATION TO NIGHT WORK AND UNUSUAL SCHEDULES. CANADIAN PACIFIC MAGAZINE CAUGHT UP WITH RORY AT THE SECOND ANNUAL SPIN FOR A VETERAN CHARITY EVENT TO DISCUSS HIS NEW ROLE RECRUITING VETERAN TALENT FOR CP.

MANAGER, MILITARY RELATIONS

RORY THOMPSON

1. What initially drew you to a career in the

military?

Ever since a young age, I really enjoyed being outdoors and I grew up in a competitive environment playing rugby. I had two older brothers who were in the military, so following that path was natural; as a 15-year-old, I saw what fun and exciting opportunities they were getting and I wanted to follow in their footsteps.

2. Tell me about your time in the British Army.

I went to military boarding school at 15-years old, and joined the military afterwards. After earning a degree in Information Systems Management, I went to the Royal Military Academy Sandhurst [U.K.]. I left Sandhurst as a Lieutenant and chose a career in military communications. Throughout my military career, I have commanded a platoon in Iraq, trained potential Special Operators for the British Secret Intelligence Agency and joined the British Army’s prestigious Parachute Regiment. I finished my British Military career at a posting in Suffield, Alberta as the Operations Officer.

3. How did you come to join CP?

My wife is Canadian, so we always wanted to move to Canada. I started looking for opportunities around Calgary and submitted my resume to a company called Forces@WORK. By pure chance, they were meeting with Scott MacDonald, Senior Vice-President Operations (System) and they handed him my resume. I got a call a few days later.

4. Talk a bit about your new role as manager of

military relations.

My role has three segments: Recruit, Assist and Retain. For Recruit, I travel around Canada and the U.S. visiting military bases and delivering presentations to transiting military personnel on what CP has to offer, and why we are a great company for veterans. For Assist, I work one-on-one with potential candidates to relate their experiences to suitable roles at CP, provide interview coaching, and interpret their military experience and resumes for our hiring managers. For Retain, I manage several initiatives that not only assist the veterans in their first few months but also ensure they stay around for the long haul.

—24 VOL. 20 | 2018

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5. Do veterans tend to fare better in craft or management roles?

They’re a great fit in any role. The beauty of CP is we can employ any rank, any background, because of our diverse opportunities. Veterans come to our organization with many transferable skills; to operate in stressful environments, to always turn up on time, to take orders and execute, and most have leadership experience in operational environments. If you take someone with those skills and make them a railroader, they are going to perform.

6. You also oversee the Veteran’s Club program at CP – tell us

about it.

The club’s veteran members can find out about other opportunities in the company and the program helps them feel like part of the CP family. In the military, you have this esprit de corps, where you’re part of a larger whole; like a family, you all have a common goal. So just to get back in that environment is familiar for them, it builds camaraderie, and is always good fun.

7. You mentioned you had brothers in the military. What do they

do now?

My oldest brother lives in Washington, D.C.; he works for Amazon. My other brother lives in Abu Dhabi; he’s a schoolteacher and vice-principal at the British school there. My third brother is the CEO of an energy resources and environmental company in Australia. And I work in Calgary. My poor parents wonder what they did for us to scatter all over the world!

8. Tell us about where you grew up.

I grew up just south of Edinburgh, Scotland. I come from a small town of about 15,000 people, where rugby is a religion. If you don’t play rugby there, no one really speaks to you. I still love rugby to this day but due to the Canadian climate, I can only play in the summer.

9. What unique challenges do veterans face compared to non-

vets when applying for jobs at CP?

The military offers great job security and all of a sudden, that security is no longer there. Also, many veterans have never had a job interview in their life. I coach them in that area, so they understand the types of questions they might be asked and how to give a relatable answer. I was extremely lucky with my transition into civilian life at CP so I try to emulate that for every veteran I come into contact with.

10. What’s the main takeaway you’d like veterans to understand

about working at CP?

It’s the opportunity to build a career. A new-hire veteran conductor can take the experiences learned in their role and possibly make an impact somewhere else – not only in operations. It’s usually what I recommend: The best way to learn the industry is to practice the fundamentals from the ground up. I’m able to do my job effectively and credibly due to my time spent as a field manager.

SPIN FOR A VETERANThe second annual “Spin for a Veteran” competition was bigger and better this year! Held at the end of June, 17 teams of employees, emergency responders and local companies descended upon the Royal Canadian Pacific Pavilion in Calgary to cycle for 24 consecutive hours on spin bikes. Their goal? To raise money and awareness for veterans experiencing homelessness after leaving the military. Through teams’ fundraising and CP matching donations made online through the Giving Engine, it is expected two homes will be built for veterans from this year’s proceeds.

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FAMILY DAY REVELSTOKE, B.C.

On Saturday, July 28, Revelstoke employees gathered at Queen Elizabeth Park to celebrate CP Family Day.

FAMILY DAY PORT COQUITLAM, B.C.

CP hosted a Family Day Saturday, July 7, for Port Coquitlam and Vancouver area employees. Families enjoyed a day of live horse racing, food and fun at the Hastings Racecourse.

Throughout the year, CP hosts or is involved in a wide

range of events across the network, from Port Moody to

Minneapolis to Montréal. We want to see what you’re up

to. Snap a photo of yourself or co-workers at a CP event,

or when you are representing CP in the community.

Submit your photos to [email protected]

and we will try to share them here. For more information

about CP events visit the notice board and event calen-

dar on CP Station.

SAFETY LEADER CALGARY, ALTA.

From left to right: Dustin Ritter, HazMat Officer, Darlene Nagy, Manager Hazardous Materials Programs, Randy Mak from Responsible Distribution, Prairie Region & National TRANSCAER Chair, James Martin, Specialist HazMat, and Jim Kozey, Director HazMat Programs won a TRANSCAER Canada 2017 regional award for exceptional delivery in training new audiences.

PARTNERING WITH COMMUNITIES MOOSE JAW, SASK.

CP sponsored and participated in the Moose Jaw Atamiskākēwak National Gathering 2018 in April. Attending the opening ceremony (from left to right) Alicia Gerlach, HR Business Partner, Melissa Shellnutt, Specialist Recruitment, Moose Jaw Mayor Fraser Tolmie and Moose Jaw CP Police Constable Brady Popil.

—26 VOL. 20 | 2018

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canadianpacific cpwomensopen #DidYouKnow @CanadianPacific is matching donations through @CPHasHeart to help #LittleHearts in Regina? Donate today and make double the impact!

FROM INSTAGRAM:

We want to be the employer of choice for transitioning veterans. Learn about our custom programs to support next steps. http://www.cpr.ca/veterans

FROM FACEBOOK:

FROM TWITTER:

Use your #CPRailSense and stay away from train bridges during your summer adventures. #LookListenLive #SeeTracksThinkTrain

Our newest and most technologically advanced fleet will ensure your goods arrive at their destination safely and on time. Visit cpr.ca to learn more about #CPTempPro

FROM LINKEDIN:

FAMILY DAY ST. PAUL, MN.The rain didn’t stop CP employees and their families from enjoying CP Family Day in St. Paul on August 6.

AARS CHICAGO, IL.

President and CEO, Keith Creel spoke at the American Association of Railway Superintendents conference on July 23. Pictured here from left to right: Donnie McKelvey, Superintendent Bensenville, Larry Lehman, Conductor, Mr. Creel, Mike Barber, Locomotive Engineer and Nick Walker, GM Operations - U.S. East.

AMERICAN HONDA PERFORMANCE EXCELLENCE AWARDS RANCHO PALOS VERDES, CA.

From left to right: Tosh Muraviov, Manager Port & Field Operations – American Honda, Jonathan Wahba, VP Sales & Marketing Intermodal, Chuck Kendig, Assistant VP Sales & Logistics Planning – American Honda and Christopher Popjoy, National Account Manager, Automotive, pictured with the “Rail Origin of the Year” award, accorded to CP automotive in recognition of thier commitment to excellence and dedication to customer service.

PUFFER BELLYCRANBROOK, B.C. The Puffer Belly crew was all smiles at the Cranbrook Parade on June 16, despite the looming rain clouds the event was a success.

—27

FROM SOCIAL MEDIA

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FROM THE

ARCHIVES

EXPANDING WESTERN CAPACITYIn the late 1800s and for the next century, CP embarked on a $600-million expansion program that involved double-tracking, major yard construction and expansion, irrigation and colonization initiatives, shipbuilding, and erecting luxurious hotels.A pinch-point in the Rocky Mountains was Rogers Pass. CP spent over a million dollars in the 1880s building snowsheds, loops and trestles in the pass. And, in the 1910s, CP spent $60 million tunneling under the pass. CP also spent $500 million in the 1980s building a one-mile tunnel, a nine-mile tunnel (Mount MacDonald Tunnel), and a 1,200-foot viaduct to lower westbound grades to one percent.

LOCATION: ROGERS PASS B.C. CIRCA 1914ABOVE: This is a construction camp at the portal of CP’s 8-km (5-mile) double-track Rogers Pass tunnel, later known as the Connaught Tunnel.

LOCATION UNKNOWN CIRCA 1914BELOW: CP’s earlier western capital expansion program on the Prairies.

—28 VOL. 20 | 2018

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EDITOR

Vanessa DiFruscia

WRITERS & CONTRIBUTORS

Ariella Calin, Andy Cummings, Vanessa DiFruscia, Brenda Land, Mallory McCredie, Melissa Murray

DESIGN

Geminesse Johnson

ILLUSTRATION & PHOTOGRAPHY

Claire Dibble, Vanessa DiFruscia, Geminesse Johnson, Todd Korol, Kane Tchir

SPECIAL THANKS

Canadian Pacific Magazine would like to extend a special thanks to Kevin Sholes and the safety team for helping us gather CP Home Safe moments from across the network. Greg Kravtsov, Peter Shaw

and David Phillips for showing us CP’s newest and coolest maintenance of way machines. Pam Arpin and Nancy Morton for letting us sit in on their Customer Advisory Panel. And thank you to everyone

else who answered a call, suggested a name or story idea, let us take your photo and more. We couldn’t do it without you. Please remember to submit your photos of employees representing

CP at community events for the Out and About page ([email protected]).

NEED HELP?The Employee Family Assistance Program (EFAP) is available, free of charge, to any employee interested in confidential counselling, addiction services and other community resources for a wide range of personal challenges. To get more information about EFAP services or to use this resource, call:

Canada 1 800 735 0286 U.S. 1 800 432 5155

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TAKE OUR SURVEYGive us your feedback on employee communications for a chance to win a prize!

Visit surveymonkey.com/r/cpcomms18 and take our employee communications

survey. Provide your contact details and be entered for a chance to win some great

prizes, including first access to CP Holiday Train tickets!

Have a smartphone? iPhone users can simply scan the code to the left using their

camera. Android users can scan the code using a QR code scanning app.

Thanks for participating.

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