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Page 1: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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i CANADIAN PACIFIC MAGAZINE

VOLUME 9 — 2015

MAGAZINE

Page 2: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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ON THE COVERIn the time photographer Kris

Grunert spent with Conductor

Shawn Mowder, he noted how

aware Shawn seemed of his

surroundings. “I noticed his swift

but unrushed consistent pace

from switch to switch. I told

him I heard his job was like a

game of chess and asked if he’d

agree. He said “yes, you have to

think 6 or 7 moves ahead.”ii CANADIAN PACIFIC MAGAZINE

Page 3: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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DON’T TAKE IT FOR GRANTED

L E T T E R F R O M T H E E D I T O R

STEVEN NOBLEEDITOR-IN-CHIEF

It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds, regions, departments, levels of seniority and degrees of experience. But if there is one universal language at CP, it would be safety.

No matter who you are, where you are from or what you do, nobody wants to get

hurt or see someone else get hurt.The irony is that for those 14,000

employees to march to the same beat, each one needs to be individually committed to safety, all the time. One lax moment in one part of the network can send devastating tremors throughout the company, and beyond.

In this issue of Canadian Pacific Magazine, President and Chief Operating Officer Keith Creel talks about a recent incident that could have been avoided, and while it was serious, it could have been worse.

“We need to get to a point where each employee feels a sense of responsibility for the other,” says Creel. “The reality is, you should be confident

in your abilities, but you should always feel a little nervous as well. If each of us balances that confidence with an on-guard attitude, CP will be a safer place to work.”

Nearly three years into his tenure at CP, Creel is the first person to say that CP’s safety record is the only number that really matters. “If we take care of that, everything else falls into place.”

Veteran railroaders talk about how they were taught to leave home each day, thinking about what they needed to do to return home that night.

Well, some things don’t get old. Whether you are in Thunder Bay or Golden, Elkhart or Portal, it’s on each of us to make a difference.

CANADIAN PACIFIC MAGAZINE 1

Page 4: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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SAFETY

THIS MOCK IS NO LAUGHINGMATTER

CP field HazMat specialists Ed Dankbar, Clemens

Schlimkowski, and Scott Croome showed more than 60

visitors from various agencies how to access the tunnel.

2 CANADIAN PACIFIC MAGAZINE

Page 5: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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Dale Buckholtz’ team has a charge unlike any other at CP: prepare for incidents involving commodities that present a threat to human health and the environment.

After the 2014 tragedy in Lac-Mégantic,

Québec, and several other notable rail

incidents prior to that, this mission is more

important than ever.

“I do not want that happening with a

CP train. Not on my watch. Not ever,” says

CEO Hunter Harrison.

PLANNING AHEAD

Buckholtz and his field HazMat specialists

are ready to go 24/7 with training and

equipment suitable to contain and clean up

a potential spill involving any product our

customers have hired us to haul. Yet, their

mandate goes far beyond actual responses

to such incidents, which of course are

increasingly rare.

This year, the HazMat team spent

considerable time coordinating and holding

training sessions with local first responders,

talking through mock disasters around

conference tables and executing two

unprecedented, large-scale scenarios with

public agencies.

The first of these occurred from June

1 to 3 in Detroit. During that stretch, in a

hotel ballroom session, HazMat specialists

Ed Dankbar, Clemens Schlimkowski

and Scott Croome gathered with first

responders from local, state and federal

agencies on both sides of the border.

Their disaster scenario involved a HazMat

derailment inside the Detroit River Rail

Tunnel, a century-old rail link between

Windsor and Detroit. The next day, the

team hosted first responders at the tunnel

site to show them how to gain access in

case of an emergency.

“Everyone treated the incident as if it

were real,” says Buckholtz.

“It was good to see experts from so

many different areas and agencies working

together, taking it seriously. And it was a

major opportunity to build credibility with

different agencies, such as Homeland

Security. I’m confident they walked away

with new respect for us, as well as being

better prepared to handle a potential

incident in a quick, efficient fashion.”

The second mock disaster scenario

took place from August 25 to 27 at two

sites in northern Minnesota. The highlight

of Operation Vigilant Guard was a

demonstration lift of a CP firefighting trailer

by a National Guard helicopter.

“These events were the most significant,

and involved the first mock exercises CP

has ever been involved in,” adds Buckholtz.

The message here is that we are being

more proactive about community safety,

SAFETY

CP’s dangerous goods team explores the Detroit

River Tunnel from the U.S.-side ventilation shaft,

which features an access stairway.

First responders gather at the Detroit

River Tunnel’s west portal, where CP’s

dangerous goods team familiarizes them

with the tunnel’s features.

CANADIAN PACIFIC MAGAZINE 3

Page 6: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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SAFETY

CP dangerous goods officer Ed Dankbar (center) talks

to Detroit firefighters at the tunnel’s west portal.

CP converted a retired tank car into CP 911, and Scott

Croome (center) and his colleagues use it to show first

responders the features of a general-service tank car.

4 CANADIAN PACIFIC MAGAZINE

Page 7: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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THESE ARE CP’S SAFEST TERMINALS AS OF AUGUST 20151.

2.

3.

4.

5.

At CP’s 2014 Investor Day, Keith Creel,

President and Chief Operating Officer,

stood onstage in New York City and proudly

announced that the CEO Awards for

Excellence are one of our most important

annual events.

While winners enjoy a trip to a five-star

resort with a guest, the event symbolizes

something more important: individual

efforts and successes that are necessary

for CP to reach its goals each year.

Employees from every department have

the opportunity to make a difference in this

company by nominating someone for the

CEO Awards for Excellence; someone who

is making a difference and going the extra

mile to safeguard CP’s success.

This year, the nomination deadline is

earlier than before: November 15.

Be sure to get your nominations in on

time to be considered.

CEO AWARDS SO FAR, SO GOOD

YEAR TO DATE: NOMINATIONS BY DEPARTMENT

1. RUNNING TRADES

2. SALES AND MARKETING

3. FINANCE

4. MECHANICAL

5. ENGINEERING

6. IS (IT)

7. HR

A Minnesota Army National Guard CH47

Chinook helicopter takes a CP firefighting

trailer airborne at Camp Ripley.

First responders deploy air monitoring

equipment as part of the Duluth exercise.

CP environmental officer Chad Livingston talks

emergency response with the Iowa National Guard.

CANADIAN PACIFIC MAGAZINE 5

Page 8: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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DDB CANADA 1600 – 777 HORNBY STREET, VANCOUVER, BC, CANADA V6Z 2T3 T 604 687 7911 F 604 640 4344

I’ve worked for CP for more than 25 years, and have been

working at Oshawa Yard for roughly 20 years on and off.

I’m a yard foreman and my job primarily deals with managing

automotive empties and loads to service General Motors.

We take in empty cars and bring loads out. Loads are

dispersed to main line crews, most of which are directed

to Toronto yards.

I provide service by being focused on the job at hand,

and making sure that I’m doing my job right. If I can do

that safely, customers are happy and I know I’m providing

the best service possible. One of the biggest elements of

providing service is being focused and paying attention

to details. You have to make sure all cars are spotted and

marshalled correctly.

I’ve learned that communication is very important on

the job. It plays a big role in promoting safety. With clear

communication, everyone knows their job and what they’re

doing. You have to assist new-hires to ensure they work

safely; point out their mistakes and help correct them.

LAWRENCE THOMPSONPROVIDE SERVICE

Conductor | Oshawa, Ontario

A building is only as good as its foundation. The same philosophy applies with railroads.

Each of the five Canadian Pacific Foundations is a guidepost, designed to support you by providing a standard and a focus you can base your career on as we continue to build a positive and productive culture.

6 CANADIAN PACIFIC MAGAZINE

Page 9: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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5 FOUNDATIONS

I’m a locomotive engineer based out of Elkhart, Indiana and have

been working with CP since 1993. At Elkhart Terminal we have

trackage rights agreements that allow us to run trains between

Windsor, Ontario and Bensenville, Illinois where we operate a run-

through service. This is a fast, direct route, requiring less mileage

than when travelling through Canada. You don’t need as much power,

so this route is fuel-efficient. As engineers, when we’re operating our

trains across this water-level route, we have increased opportunities

to control costs.

For example, we are required to use dynamic brakes. This

makes a big difference because we require less braking power than

when power braking with air. This saves fuel and offers better train

handling. It’s also helpful when you can see two to three signals

ahead, and plan stops using dynamic brakes to slow the train.

One of the best ways to save fuel and operate a train within our

division is with improved communications between dispatchers and

engineers. You can effectively use grades when you know where you

will be stopping and thus reduce speed well in advance. This just

makes sense.

Controlling costs is something everyone should be mindful of.

The impact of thinking that way can help us save jobs. I’ve always

been conscious of cost control, because back in the 70s you wanted

a railroad to survive so you would remain employed. I’ve always been

that aware, and probably will be until I retire.

During the past year and a half, we’ve become more customer-driven.

To accomplish this we had to use our assets more efficiently. As a

result, we removed unnecessary locomotives and began to process

trains with less manpower.

When management saw a good opportunity and gave us the push to

move operations from the downtown Edmonton South Yard to the east

end of the city, I was skeptical. That yard held between 600 and 1,200

cars and to move that traffic without upgrading the infrastructure seemed

unfeasible. This was a real learning experience. We made it work and it’s

sped up our railcar processing time, making Edmonton operations more

manageable than ever.

Operating fewer cars enabled us to be efficient with our space and

move cars outbound with less dwell time. I always used to compare

this job to a game of chess; you have to slow down and think carefully

to make the right move, to put the right car in the right place at the right

time. Now, I think railroading is more like checkers; you have to move

faster to be successful.

With these changes, we realized how important it was to get

everyone on board. Our success couldn’t have been possible without the

employees on the ground who work with those cars every day. So, we

brought everybody in on the planning process. We encouraged everyone

to collaborate and work as a team to improve our processes.” Not only

has this made us successful, but it’s a good feeling to know that everyone

has played their part in the resulting success.

SCOTT CARNEY

KEVIN BUTLER

Locomotive Engineer | Elkhart, Indiana

Terminal Trainmaster | Edmonton, Alberta

CONTROL COSTS

OPTIMIZE ASSETS

CANADIAN PACIFIC MAGAZINE 7

Page 10: MAGAZINE · 2020. 4. 29. · LETTER FROM THE EDITOR STEVEN NOBLE EDITOR-IN-CHIEF It’s no easy feat to get 14,000 employees on the same page. People come from different backgrounds,

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5 FOUNDATIONS

I’ve been with CP as the terminal manager here in Kansas City just

over a year now. I may be new to the company, but my career thus far

has been in railroading.

We’ve been injury free here for the last two years. Having a safety

culture is one of the most important aspects of the job. Safety is

something employees must buy in to; compliance and efficiency

tests only go so far. You need your team to think about their fellow

co-worker’s well-being as well. I’ve done a lot of coaching and

used positive reinforcement, which has helped improve our safety

procedures. Positive feedback promotes open communication

and dialogue.

I used to play NCAA Division 1 football, and have had good

coaches and bad coaches. The good coaches trained us to pay attention

to the smaller details. That is the philosophy I’ve brought to CP. An inch

can make or break the game, just like a small mistake on the railroad

can quickly effect whether someone goes home safely or not.

One piece of advice to improve safety culture is to hire and train

managers who go the extra mile. In essence, safety culture starts with

us. We’re the coaches, we’re running the team.

With CP successfully developing many new pieces of business, the

demand to hire more employees increased substantially. In 2014, we

hosted a two-day event to attract and subsequently hire a high volume of

candidates; a process that typically takes 14 weeks. The payoff was huge.

By outsourcing recruiters we were able to attract more than 400 qualified

applicants and offered new career opportunities to nearly 100 people on the

spot. We called them golden tickets. It was an honour giving out the tickets.

These people needed an opportunity. They needed a career.

When they showed up at our recruitment event, their faces lit up with

excitement. You could see it gave them hope.

The event made me feel more connected to the business and the people

within it. After we conducted physicals, drug tests and training, we took it

even further by offering relocation bonuses. The HR team built packages so

we could better discern how to support them and their families long term.

Our success began with finding qualified candidates, but the story

quickly became about developing people. It was obviously not just

about finding them, but giving them the best training possible, pairing

them with top trainmasters and crews when on the job, and giving them

the security of a home since we were moving them across the country.

Ultimately, it was on us to put them in a position to succeed, and then

the execution was up to them.

We’ve retained more than 80 per cent of those new-hires, which

I’m proud of. By supporting and developing our teams internally, we

turn recruits into railroaders and new-hires into strong leaders who will

eventually carry the business. Playing a role in this is empowering.

My job allows me the freedom to test my capabilities and use my creativity

to come up with my own ideas, and then watch them come to life.

WILL MINTORTerminal Manager | Kansas City, Missouri

OPERATE SAFELY

SHERI PERKINSHR Business Partner | Minneapolis, Minnesota

DEVELOP PEOPLE

8 CANADIAN PACIFIC MAGAZINE

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PUMPED UPCP HAS HEART

Since being established in June 2014, the CP Has Heart (CPHH) program has made a huge impact on heart health across North America, donating more than $6 million to fund research and equipment, and generate awareness for cardiac-related issues. This year’s charity partnership for the Canadian Pacific Women’s Open (CPWO) was another huge success. We raised $1.2 million for BC Children’s Hospital Foundation (BCCHF) in support of pediatric cardiac research.

“Through the CPWO tournament and its CPHH initiative, Canadian Pacific has engaged the community to support our hospital’s cardiac programs and research,” said Teri Nicholas, President and CEO of BC Children’s Hospital Foundation. “It’s an ideal partnership. CP takes care of the country’s major arteries, while our cardiac specialists take care of the smallest. We are extremely grateful to CP and all who contributed to help BC Children’s achieve its vision to provide the best cardiac care possible.”

Achieving that total was no small feat. Throughout the summer, CPHH supported a number of fundraising initiatives, such as BC Children’s Hospital (BCCH) Miracle Weekend, Grind For Kids at Grouse Mountain, and Building for Kids Charity Golf Classic. To top it all off, CP matched all online donations, doubling the impact. But the biggest success of the summer was the Canadian Pacific Women’s Open. The popular Birdies for Heart program, where CP donates $10,000 for every birdie made at the 17th hole brought in $275,000 alone, pushing the grand total well beyond the initial $1 million goal.

For volunteer Rick Thomas, Instructor, Engineering, being part of a world-class tournament that helped make a profound impact on BCCHF was an honour. “It was one of the most amazing things I could have done, and I was proud to say that I was a CP employee,” says Thomas. He was fortunate to be inside the ropes with Lydia Ko and Candie Kung from the first tee to the last green as they battled for the lead. “Everything was so well-organized and the experiences we walked away with were simply fantastic.”

THE HEART WILL GO ONNow, through the newly formed CP Healthy Hearts Research Fund, CP will leave a lasting legacy at BCCH, furthering the abilities of the BC Children’s cardiology department, specifically by way of research. Funding will go to hire

PhD-trained researchers to lead new studies related to heart rhythm disorders and congenital heart and vascular health.

“Congenital heart disease affects one in every 100 children. It’s among the most common congenital anomalies,” said Dr. Shubhayan Sanatani, Division Head, Pediatric Cardiology, BC Children’s Hospital. “As the centre for specialized pediatric cardiology care in British Columbia, BCCH treats infants, children and teens with complex heart problems from all over the Yukon, B.C. and other Western Canada provinces. This tremendous support from CP will allow us to continue to provide excellent care for this important demographic. It will also allow us to improve our care by expanding our research efforts to find even better treatments for these children.”

NO STOPS ON THE ROAD TO HEALTHY HEARTSCP Has Heart doesn’t pump the brakes when it comes to heart health, and plans are already in motion to make a huge impact for next year’s CPWO charitable partner, Alberta Children’s Hospital and their pediatric cardiac care and research. The new program has already made a lasting impression and will continue pumping the message about heart health in communities where we operate for many years to come.

CP HAS HEART DELIVERS BIG FOR LITTLE HEARTS

Minneapolis employees proudly wave after participating in the

HeartBeat 5000 five kilometre run. Proceeds went to Children’s

Hospitals and Clinics of Minnesota’s cardiovascular program.

CANADIAN PACIFIC MAGAZINE 9

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CP’s record as the safest railroad in North America has been the result of the constant awareness and dedication of each one of these people. It is no accident when you are recognized by the Federal Railroad Administration as the safest Class 1 railroad nine years in a row.

This achievement can be lost in a matter of seconds due to just one person’s negligence or inattention to detail. That’s why CP leadership is continuing to encourage a culture of compliance and accountability, particularly when it comes to safety.

“The tremendous safety records that some of our terminals have are all for nothing if every individual working at this company does not buy in to

SAFETY

MY BROTHER’S

The hard work of CP’s 14,000 employees has fuelled the company’s success in recent years.

10 CANADIAN PACIFIC MAGAZINE

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the same philosophy,” says Keith Creel, President and Chief Operating Officer.

“CP and the railroad industry as a whole are under the microscope more than ever. Some would argue that the public has lost confidence in the railroad. It’s up to us to rebuild that trust, and just me saying this won’t make that happen.”

For a company the size of CP, even the smallest error could put jobs and more importantly, lives at risk. Creel refers to a recent derailment in Western Canada as an example of the ongoing need for compliance with and knowledge of safety procedures, protocols, rules and regulations.

“This was preventable. The crew made assumptions without checking; without holding each other accountable. The outcome was that cars belonging

SAFETY SUCCESSESSafety culture must be owned and valued by

each individual for it to be successful. If one

employee at a terminal doesn’t take safety

seriously the efforts of everyone else and

their goal to arrive home safely to their family

and friends is meaningless. When a terminal

or facility achieves a year-over-year safety

record, it’s the sign of a unified approach and

proven value of the employee community

within that area. That’s something we should

all aim for, and is worth recognizing.

These are CP’s safety records by

department as of August 2015:

10%Q2 2015 at CP saw a 10 per cent reduction

in the FRA Train Accident Frequency.

9 YEARS 2014 was the ninth consecutive year that CP

had the lowest FRA Train Accident Frequency

of Class 1 railroads in North America.

13/14 CP has had the lowest FRA Train Accident

Frequency for 13 of the past 14 years.

The FRA Train Accident Frequency is based

on the number of FRA train accidents per

1,000,000 train miles.

The FRA is the Federal Railroad

Administration—U.S. Railroad Regulator.

to our biggest customer derailed—all because of an assumption. What if that cargo had been a dangerous commodity?”

Creel says that holding each other accountable for the tiniest detail isn’t about being a know-it-all or causing tension on a crew. It’s about protecting each other.

“We need to look out for each other, err on the side of caution, have each other’s backs. If someone is seen cutting a corner or making an assumption we absolutely must alert them,” says Creel. “Too many people are doing too many things right at CP to let one reckless mistake or one lazy error derail us.”

CANADIAN PACIFIC MAGAZINE 11

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CP’s story isn’t about the price of crude oil. It isn’t about the weather, the economy or any other external force. It’s about how what we do within this railroad defines this company.

12 CANADIAN PACIFIC MAGAZINE

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CANADIAN PACIFIC MAGAZINE 13

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Winnipeg Yard hummed beneath the floodlights on a hot July morning as the city slept around it. It was a perfectly normal night.

President and Chief Operating Officer Keith Creel pulled his rental car into the parking lot, rolled up his sleeves and laced up his steel-toed boots. He gathered his portable radio, hard hat, lamp, safety glasses and hi-viz vest. Railcars clanged and locomotives rumbled around him while the night crew switched cars and built trains. The president quietly watched and listened, observing Winnipeg Yard’s outstanding communications, rules compliance and professionalism.

After a while, he went up to the yard tower overlooking the operation. He spent the next 16 hours there with Tony Marquis, Senior Vice-President, Operations, Eastern Region and the two of them worked with local employees to strategize how a good yard could become a great yard.

“Together, we identified enough opportunities to accelerate production and help Winnipeg Yard save CP thousands of dollars a day, while improving our service offering to our customers,” says Creel.

This isn’t to say things weren’t going well at Winnipeg. He notes that the yard was doing a lot of good things.

“But this is the type of diligence, of watching out for each other, never settling for what we did last year, last month or yesterday that helps keep this business successful, even in the face of currency fluctuations, commodity volatility and economic headwinds.”

BUILD YOUR HOUSE ON SOLID GROUNDEconomies in Asia and Europe are sputtering, North America’s economies are sluggish and the stock market has not encouraged confidence.

14 CANADIAN PACIFIC MAGAZINE

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And while nobody is invincible, CP has built its business to last—moving our company from sandy shore to solid ground. The process has been three years in the making so far, but clearly the timing couldn’t have been better as we head towards the end of 2015 with stronger first half numbers than many other railroads.

“In what has been a challenging environment, I’m proud that this operating team adapted and responded to these conditions by controlling what we could, sweating our assets and executing our operating plan,” says Creel, back in his Calgary office.

“The team has been quick to make changes in our daily plan, changing our train design to match the business and then executing it to mitigate the volume weakness and reduce our train miles. So despite this volume weakness across the bulk and the crude portfolio, which by nature has a great proportion of unit trains, our train length is still up year over year.”

In fact, in the face of what CP has done, if you discount market conditions

specifically impacting U.S. grain and energy shipments, CP’s story is growth.

“This tells me the story is working. And as the business comes back, with the leverage that we’re creating with a lower cost operating structure and improved service, you get pretty powerful leverage at the bottom line,” says Creel.

BALANCING ACT One thing CP has intentionally avoided in recent years was over betting on the future of any one line of business. Whether oil was $125 a barrel or the bottom was dropping out of the auto industry, CP did not overreact. Instead, the plan during the last three years has been about steady, calculated growth; creating balance in each line of business.

“Railroading is not a poker game,” says Creel. “We’re talking about people’s livelihoods here. The room for error and getting caught up in the next big fad is not how you run a fundamentally sound business. That’s why we never put all our chips in the pot for crude oil, frac sand, grain or any one line of business.”

CEO Hunter Harrison and Creel talked about building a balanced approach to growth from the day they arrived at CP. One of the levers to this approach is matching assets to demand.

Just because the biggest grain yield in history happens one year, it doesn’t mean adding 7,000 grain hoppers to the fleet the next year.

“You cannot operate on the assumption that what happens one year will repeat itself the next year,” adds Creel. And in hindsight, considering the dry season that baked the Prairies, Western Canada

and the Midwestern United States this past summer, it’s a good thing we haven’t bloated the grain fleet.

“Everyone in railroading knows there’s going to be ups and downs with shipping commodities. That’s why we focus equally on the different lines of business. That way, we don’t have to cut 2,000 jobs because crude takes a hit,” says Creel.

“Instead, we build so that we have the service, the infrastructure and the operations design in other lines of business to pick up the slack and push us through.”

FIND STRENGTH IN WEAKNESSHistorically, some of CP’s key lines into merchandise markets have not had the most modern infrastructure and subsequently, operated at slower transit times.

“What it takes to run an efficient merchandise franchise wasn’t well understood at the old CP,” says Mike Foran, Vice-President, Network

CANADIAN PACIFIC MAGAZINE 15

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Transportation. “Today, we put more focus on those customers, merchandise lanes and markets. We know that if we invest in those lines of business, there’s room to make customers happy and grow a balanced business.

“Ideally, you want to reach a point where if one line or even two lines are softening, the other lines of business are strong enough to pick up the slack. You’re seeing that philosophy pay off now.”

This is a big part of why CP has invested millions of dollars upgrading the North Line (from Portage la Prairie, Manitoba to Wetaskiwin, Alberta) and the Chicago to Portal Line, which is vital to successful service between Chicago and Vancouver.

Intermodal tells a similar story. We redesigned the domestic service from Toronto to Calgary/Vancouver, and today nobody offers better, faster or safer service in that line of business between those points. CP has been working hard to take back areas of the international business that we once contracted out, such as logistics for cross-border shipments. Today, we know that the more elements of shipping we control, the simpler it is for the customer and the better value for both parties.

“All these moves are designed to create more balance between the lines of business,” adds Foran.

ADAPTINGCP has identified tactics to grow the business, particularly during tough economic times.

One such tool is dynamic pricing. “This is about understanding where we have capacity on existing trains on a train-by-train, lane-by-lane basis, and offering existing customers the opportunity to increase their freight

volumes with us by filling those empty slots on our trains,” says Creel.

“This isn’t a long-term strategy. It’s simply one way we’re reacting to the market demand, which is low.

“If there are empty slots, sales people are empowered to fill those blocks.

“A full train is one that’s good for everyone. This is not about selling new train starts. We’re going to review this on a weekly basis.”

RIGHT SIZE, RIGHT TRACKAll this is an example of why CP does everything based on five core Foundations: Provide Service, Control Costs, Optimize Assets, Operate Safely, Develop People.

By rebuilding the business according to these guideposts, CP has vastly improved terminal productivity, lowered costs, reduced capital expenditure needs, and with greater asset utilization, improved our product offering in the marketplace.

Another area of performance where CP led the industry in improvements is velocity and network speed. Last year, when CP laid out its four-year plan for growth, speed and velocity were key themes targeting a 20 per cent improvement over the duration.

“Thanks to the hard work of employees and the pride they are taking in their work, CP is already on pace to hit that mark this year,” adds Creel. “As a result of faster, more efficient movements, we’ve reduced the locomotive fleet by that same number.

“These improvements have positioned CP to succeed in spite of what’s happening around it.”

16 CANADIAN PACIFIC MAGAZINE

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THAT’S A WRAPAfter nearly 24 straight hours working hand in hand with the operations team at Winnipeg Yard, Creel turned off his radio and climbed back into the rental car. As he pulled out of the lot, he was already thinking of his next yard visit.

“The reality is that even with an anxious economy, we’ve got positive

growth in a number of lines of business, including domestic intermodal,” said Creel. “That tells us that this story is working even in the face of some pretty stiff competition, be it our truck or rail competitors.

“What we’re building—this operating model—works in any environment,” says Creel. “That’s something everyone at CP should be proud of.”

CANADIAN PACIFIC MAGAZINE 17

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QUESTIONS

10 QUESTIONS

AARON LEBEAU CARMAN

18 CANADIAN PACIFIC MAGAZINE

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Working out of Bensenville, Aaron Lebeau is a young carman who started with CP less than a year ago. This ex-Marine’s passion to learn and positive attitude is representative of this railroad at its best. Nick Sohns, Director, Mechanical, U.S. East says Lebeau is one of his best recruits, with a bright future ahead of him.

You’re relatively new here. How are things going thus far?There is a lot to learn about working for

the railroad, but I’m picking things up

quickly. I’ve been absorbing everything

like a sponge, and I’m enjoying the job.

What made you choose CP?It was important to find a job that would

keep me interested. My job research

started before leaving the Marine Corps.

I was released in October 2014 and hired

at CP in December. I’m a very hands-on

type of person and can’t be stuck in an

office. After seeing a CP job posting and

researching the different types of jobs

available, it was clear that there was a lot

of variety. I was certain to find something

appropriate at CP.

What do you like most about being a carman?I enjoy being around the guys who have

worked here for 20 to 30 years. They

mentor me and teach me tricks, such

as how to make repairs easier and more

safely. I enjoy learning from their years

of experience and applying this new

knowledge on the job.

6/

7/

1/

2/

3/

4/

5/ 9/

10/

Have you been able to transfer any of your Marine skills over to this job?My Marine training has helped me in

terms of the seniority system. Seniority

at CP is similar to the rank system in the

military; you won’t overstep a veteran

of 30 years when you’re new. There is a

level of respect shown to these guys;

you listen, pay attention and learn.

What motivates you when it comes to working at CP?I take pride in my work no matter what

the job is, and won’t do things halfway.

Working to the best of my ability and

putting my best foot forward every day

is important to me. That’s my attitude

when coming to work. Why come to work

if you’re not going to try? Some may

call that enthusiasm; I believe it’s pride.

Besides, you can’t be lax here; that’s

unsafe. If you aren’t aware, bad things

can happen to you or your co-workers.

I like contributing to the safety culture

and success at CP.

What’s your favourite type of repair?Although our primary goal is preventative

maintenance and forward planning, the

more substantial the repairs, the more

interesting the work. From a mechanical

perspective, these offer the most

interesting and challenging repairs. It

takes considerable skill to do the repairs

on a wrecked railcar. Substantial welding

is required. Because of the challenge,

this is my favourite type of repair in

the shop.

You’ve just started your career at CP. Where do you see yourself in the future?I am in it for the long haul. CP seems

like a great place to build a career. I love

working in the shop and look forward

to learning more about the business.

There’s always something new to learn.

That keeps you sharp, you know?

What would you say your biggest challenge has been so far?Working with countless tools. I’ve not

had experience with some of them.

These cars we work on are pretty big,

so learning to use the tools correctly and

operate safely at all times is challenging.

However, when your trainer is good at

what they do, it’s easy to catch on if you

pay attention and ask questions.

Teamwork, camaraderie and mentoring seem to be the qualities you value most about this position. Is this carried over from the Marine Corps?You could say that. I do enjoy those

aspects of the job. Just as in the Corps,

everyone has to work together at CP or

accomplishments take twice as long and

safety is put at risk. It’s all about putting

in a hard day’s work and making sure

everyone returns home safely. We are

a team, and it feels like a family too.

Life on the railroad is not without its difficulties, and the field is often a stressful environment. How have you been managing the hectic workload?Every job has its drawbacks and you’ll

never be 100 per cent satisfied, but

attitude can make all the difference.

I choose to learn from challenges and

move forward, rather than grumbling

about them. If you bring that attitude

to work and to the rest of your life,

you’re just going to have a better time.

I still consider myself lucky that I got

this position and enjoy coming to work

every day.

10 QUESTIONS

8/

CANADIAN PACIFIC MAGAZINE 19

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Throughout the year, CP hosts or is involved in a range of special events across the network, from Minneapolis to Montréal. We want to see you there. Snap a photo of yourself or your co-workers at a CP event or while representing CP in the community, and submit it before you forget! Submit your photos to [email protected] with Out and About in the subject line and we’ll try to fit them on our new Out and About page.

OUT & ABOUT

CP STAMPEDE BREAKFAST

TERMINAL OF THE YEAR CELEBRATION

Steve Sugars (left) and Joshua Pender

(right) volunteer at the CP Has Heart

House during the annual pancake and

western music-themed event held at

Ogden headquarters each year.

Calgary Terminal employees raise

their Terminal of the Year flag at an

Alyth Yard BBQ.

Minneapolis employees showed their

hearts at the HeartBeat 5000 5 kilometre

run in support of the Children’s Hospitals

and Clinics of Minnesota cardiovascular

program. Warren, the son of Nick Kamp,

IT Specialist, races to the finish line

during the Kids’ Fun Run.

Calgary, AlbertaCalgary, Alberta Minneapolis, Minnesota

HEARTBEAT 5000

POTASHCORP PLAYLAND REOPENING

CP was in Saskatoon helping open newly renovated PotashCorp

Playland at Kinsmen Park, Saskatoon’s must-see family-friendly

attraction. PotashCorp Playland features a $1,025 million train

provided by Canpotex and CP, as well as a larger Ferris wheel

and a refurbished carousel.

Thank you PotashCorp, Canpotex and CP; Marlin Korczak, Assistant Superintendent, Sutherland Yard; Mayor Lee Knafelc, PotashCorp; Mark Jacobson, Canpotex and Shelly Reid, CP National Account Manager, coal and potash.

Saskatoon, Saskatchewan

20 CANADIAN PACIFIC MAGAZINE

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OUT & ABOUT

CP SHOOTS, KIDS SCORE

RIDE FOR HEART

Calgary employees showed their

jerseys around the corporate office

to support the Calgary Flames and

our CP Goals for Kids program.

They had lots of fun cheering on

their team and watching donations

for kids climb. The total donated

to KidSport Calgary this season

was $78,250.

A group of employees in the East braved a rainstorm while

participating in the Heart and Stroke’s Ride for Heart. They

raised more than $6,000 by cycling 50 kilometres along one

of Toronto’s main highways and through the heart of the city.

In doing so, the team, captained by Tina Sheaves, General

Manager, Operations, Western Region and Lore Burnett,

Coordinator, Support Services, Agincourt Yard more than

doubled their goal.

Calgary, Alberta

Toronto, Ontario

For more information about CP events watch the Notice Board or Event Calendar on CP Station. Event details are often posted on CP Station’s Community page.

Left to right: Erika Jeffs, Vanessa

Ostafichuk and Christine Piekema

help out at the event earlier this

summer at Spruce Meadows.

CP HAS HEART DONATION EVENT

Jeff Beach was one of the many

operations employees who made a

generous donation during Revelstoke’s

fundraising day for BC Children’s

Hospital. CP employees in British

Columbia helped raise more than

$20,000 for BC Children’s Hospital

Miracle Weekend in May.

Revelstoke, British Columbia

CP CONTINENTAL EQUESTRIAN COMPETITION AND FAMILY DAYCalgary, Alberta

CANADIAN PACIFIC MAGAZINE 21

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PHOTO JOURNAL

22 CANADIAN PACIFIC MAGAZINE

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Like many yards in our network, St. Paul Yard in the Twin Cities Terminal has been making changes to keep up with the new CP. It’s the only yard that continues to operate with a hump. Significant improvements have been made during the last few years to ensure we are getting the most out of this asset. The name of the game at St. Paul has been efficiency.

“At one point last year, we were up to 2,210 cars in

the yard. Now, with improved cycle and processing

times, it’s a rarity to have 1,500,” says Mark

Redd, former General Manager, Operations West,

Southern Region. (Mark has moved to Operations

East, Prairie Region.) “We’ve saved a third of the

process dwell we had last year. Now jobs move

faster, trains run on time and rail traffic is not

as bottlenecked.”

A change in how the St. Paul yardmasters operate

is largely responsible for these results. Previously,

St. Paul Yard operated with a hump yardmaster and a

pullout yardmaster. This more often than not resulted

in a disconnected yard and competing agendas.

“They weren’t talking to each other. They didn’t

know what the other end was doing and a lot of trash

ended up in the bowl,” says Redd. So the decision

was made to consolidate the two positions to create

a more cohesive yard.

Now, with one yardmaster responsible for the

entire yard, there is a better flow of traffic, which

ultimately results in faster processing and better

on-time performance.

“Once you stepped back and looked at the two-

person system, it was easy to recognize that operations

were counterproductive. Things run a lot smoother

when you clear the mud out of the way.”

Twin Cities Terminal is enjoying its lowest daily

operating costs to date and things are only set to

get better.

“We have increased production, managing and

reducing resources with new processes we have put

in place,” says Nick Walker, Assistant Superintendent,

St. Paul. “We’ve built a great team here at St. Paul.

Diverse operating backgrounds allow us to continue

to improve our terminal measures.”

CANADIAN PACIFIC MAGAZINE 23

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KEEPING ASSETS MOVINGBottom right: Mobile

carmen are dispatched

to inbound and outbound

trains to make minor

repairs, significantly

reducing the amount of

bad orders that have to

go to the repair track.

TRACK IMPROVEMENTSLeft: Track extensions to

inbound tracks at the east

end of the yard are currently

underway, increasing their

capacity to 10,000 feet and

allowing the yard to receive

trains more efficiently.

LESS IS MORETop right: Process dwell

is down 12 hours this

month to date compared

to last year’s metrics.

Improvements here mean

we are getting cars in

and out of the yard with

fewer moves.

24 CANADIAN PACIFIC MAGAZINE

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CANADIAN PACIFIC MAGAZINE 25

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CONTINUOUS IMPROVEMENTPlans are in place to redesign the

hump lead track so we can process

two trains with one shove without

blocking or being blocked by

outbound trains at the yield.

26 CANADIAN PACIFIC MAGAZINE

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CANADIAN PACIFIC MAGAZINE 27

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28 CANADIAN PACIFIC MAGAZINE

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FULL SERVICETop left: With a rate of

250 gallons per minute, it

takes less than 20 minutes

to fuel a locomotive at

the servicing island.

Additionally, crews refill

things like water, oil

and sand to ensure the

locomotives are prepared

for their next trip out.

VIEW FROM THE TOPTop right: “We are

ultimately responsible for

how traffic moves in and

out of the yard,” says Mary

L. Rollie, of her yardmaster

role. “We plan the moves

up here but our success

depends on what the guys

execute down there. It’s a

team effort.”

KING OF THE HILLBottom left: Home of the

only hump in operation

on our network. Here,

crews “pull the pin” just

before cars reach the top

of the hump, uncoupling

each them so they can

be switched onto their

designated tracks.

EIGHT SPOTBottom right: The second

locomotive shop in the

yard is commonly referred

to as Eight Spot, due

to its ability to house

eight electro-motive

diesel engines at a time

for repairs.

CANADIAN PACIFIC MAGAZINE 29

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POSITIVE CHANGESMechanical has been working

hard to apply necessary

modifications to our locomotive

fleet for a new technology

called Positive Train Control

(PTC). Here, an electrician is

applying additional antennas,

which allow the locomotive to

send and receive information

about its location and its

movement authorities.

30 CANADIAN PACIFIC MAGAZINE

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MAPPING FOR SUCCESSTOOLSTECHGEAR

AND

If you have ever wished there was a Google map for CP, we’re about to make your day.

CP now has a digital atlas. For CP employees only, there is an electronic atlas that uses

geolocation technology, and lives on a Google map base. It is available for use on tablets

and smart phones. The current version features railway lines, stations, crossings, mile

posts, rail occurrences, structures, federal and provincial ridings, municipalities and

census boundaries.

TOOLS, TECH AND GEAR

CONTENT

The atlas content is built in layers that can be turned on or off. The layers include Google map views we know and love. CP employees can zoom in on Ogden Yard and measure distances between buildings. Click on a location and a call-out box will appear noting subdivision, rail line, federal electoral riding and links.

SECURE

The best part is that this software continues to evolve and has plenty of room for customization. Secure layers of CP-specific information can be added. Recently, the grain sales and marketing team supplied data for a layer of CP grain facilities to be added. Matt Seguire, Specialist, Pricing Bulk in the Winnipeg grain office says, “The drop-down boxes bring a new level of opportunity to grow map information. The mapping technology provides a sophisticated tool to understand the network at a macro level or at a level as granular as the track around a single customer. We can use this tool to analyze potential market opportunities, as well as facilitating dialogue between the grain team, Operations and customers regarding capacity and service potential.”

TRY IT

Next time you are looking for a rail map, try the RAC digital map. To get a password & tutorial, contact [email protected]

Q. WHY DO PAPER MAPS NEVER WIN AT POKER? A. BECAUSE THEY ALWAYS FOLD.

USEABILITY

Maps can be saved as PDFs and inserted into presentations.

CANADIAN PACIFIC MAGAZINE 31

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OPERATIONS

Seventy-tonne dump trucks loaded with sand make their way down into a valley the size of a large city. The mission is simple: dump the load, turn around and do it again. The loop repeats 24/7 as drivers forge the new foundation of CP’s largest rail construction project in decades. “It’s simply massive,” says CP Construction Supervisor Ernie Bateman.

“Since construction began on April 28, we have moved half a million cubic metres of sand and clay, and that’s just the beginning.”

If you tried to move that much dirt with your wheelbarrow, you’d have to move more than 12,000,000 loads to reach the equivalent. If you laid that mountain of dirt in a straight line you could almost run it from Chicago to Calgary.

ALL THE RIGHT MOVES

After years of planning, negotiations and analytical reports, construction of the new Belle Plaine Spur is underway. Located

on the Indian Head Subdivision, the Belle Plaine Spur will be built off the existing Kalium Spur at mile 1.05, and will serve the new K+S Potash mine exclusively.

The 30 kilometre track is the largest earth moving project in Saskatchewan since the building of the Diefenbaker Bridge nearly 60 years ago. The $128 million budget makes it CP’s largest capital spend since the construction of the Mount MacDonald Tunnel in the mid-1980s.

Canadian Pacific Magazine caught up with Bateman and CP Project Manager Engineering Hui (Gary) Gao in late June to tour the remote site and discuss the scale of the project.

In total, the project will require eight million cubic yards of sand to build the base foundation of the track. To help put things into perspective, this would be the equivalent of laying approximately 100,000 Empire State Towers on their side, and forming a line as ballast.

Crews are working round the clock building out the foundation that requires backfilling as high as 29 metres in some areas. Gao discusses how the area’s geography is the main reason they require backfilling

32 CANADIAN PACIFIC MAGAZINE

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OPERATIONS

of this magnitude.“It travels through a valley that is largely composed

of wetlands,” he says. “In order to make the foundation stable, we need to build the path of the track 100 feet high and 300 feet wide on either side.”

ROCK SOLID

An earth moving project of this magnitude requires the soil to be stabilized before construction of the track can ever begin. Specialized instruments collect data from the soil as they backfill. The data is used to generate a model of the possible settlement and ensures they are backfilling to the correct amount.

“We are monitoring pore pressure to make sure that what has been backfilled isn’t being slowly infiltrated with water,” Gao says. “This would cause destabilization and create huge problems further into construction.”

IT TAKES A VILLAGE

Collaboration from dozens of departments and all levels of employee brain power, from Business Development to Real Estate, Facilities to Projects West, from Environmental to Engineering not to mention Operations, Mechanical, Sales and Marketing and Community Investment.

“An enormous amount of work from these groups went into getting us to this point and that’s probably one of the most significant aspects of this project,” says Bateman.

After all the groundwork that went into planning this project, it is now up to Bateman and Gao to ensure the project execution, making sure things run as smoothly as possible. With the project’s target completion date of October 2016, Bateman and Gao know they have their work cut out for them. There is a lot more foundation to lay down and sand to move, but every passing dump truck brings them that much closer to the finish line.

CANADIAN PACIFIC MAGAZINE 33

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OPERATIONS

34 CANADIAN PACIFIC MAGAZINE

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OPERATIONS

In 2012, CP’s Vaughan Intermodal Yard brought a hybrid, electric-diesel, rubber-tired gantry (RTG) crane into the terminal to load containers more efficiently onto intermodal trains like the 101, which crosses Canada faster than any other train in the business. At the time, the hybrid RTG was the only one of its kind in Canada.

In the past, these towering mobile cranes ran on hydraulic pumps and diesel. In recent years, emissions and potentially hazardous materials that are a product of hydraulic pumps have motivated crane manufacturers to engineer alternatives.

“This is just one more example of how we are doing things differently these days at CP,” says Vaughan and Toronto Yard Mechanical Supervisor Morris Prychitko. “We’re always looking for new ways to be more efficient in supporting CP’s success, and this machine is another way we are doing that. The fact that it’s also more environmentally friendly is something we should all be proud of.”

Powered primarily by electric generators and rechargeable

batteries instead of diesel and hydraulic pumps

Regenerates battery charge during the downward hoist, thus

the generator runs less, leading to increased fuel savings

During a 12-month period, burns 52,000 litres less fuel than

a conventional RTG

Hybrid RTG is a time saver. Its 108 batteries provide 20

per cent quicker reaction time than a conventional RTG

Battery and charging system developed by Ecopower,

a Canadian company based in Québec

Moves 2,000 to 3,000 more containers per month than

a conventional RTG

The generator is one third the size of the generator in

a conventional RTG

Can be monitored from any Internet connection, has

a cellular modem and its own IP address

THE RUN DOWN

CANADIAN PACIFIC MAGAZINE 35

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FROM THE

ARCHIVES

The government of Sir John A. Macdonald was determined to attract new settlers to Western Canada, and

the Canadian Pacific Railway was the key to his National Policy. The railway would carry people to the West,

where they would farm. The agriculture produced would then be shipped by CP, as would the manufactured

goods settlers would need to purchase.

Having been awarded a grant of 25 million acres of land, CP began selling property across the Prairies

and eventually established close to 800 town sites in the West. CP began a massive campaign to encourage

immigration to the West. The company had its own department of colonization, promoted and sold model

farms and built irrigation systems for agriculture. By 1910, CP was spending more money promoting

immigration to the West than the Canadian Government. Country grain elevators, similar to these at Carstairs

in southern Alberta, were introduced to the Prairies in 1879 and soon became a symbol of Canada’s western

grain-producing areas.

LEGACY OF GRAINPHOTOGRAPHER CANADIAN PACIFIC ARCHIVES IMAGE A.4124CIRCA 1947

LOCATION CARSTAIRS, ALBERTA

36 CANADIAN PACIFIC MAGAZINE

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EDITORS

Jeremy Berry, Martin Cej, Vanessa Difruscia, Steven Noble, Salem Woodrow

WRITERS

Andy Cummings, Vanessa Difruscia, Steven Noble, Joshua Pender,

Carlie Turco, Nick Sohns, Peta Stuart, Kelsey Wallace, Jade Wong

PHOTOGRAPHERS

Ewan Nicholson, Kristopher Grunert

SPECIAL THANKS

Chris Bunce, St. Paul Yard crew, Mark Redd, Bob Tuttle, Kevin Sholes,

John Grandfelt and everyone at St. Paul Yard who took the time to talk to us,

answer a question or let us take their photo. Your hospitality and cooperation

are what make this magazine possible. And thanks to everyone else who put up

with a camera, answered a phone call or email, contributed an idea or went out

of their way to help us with an interview, photo or any other off-the-wall request.

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