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5/3/2007Mechanical

CPR to maintain, refurbish federally owned hoppers under operating agreement

Canadian Pacific Railway recently reached an operating agreement with Transport Canada covering 6,300 federally owned hopper cars.

During the next five years, CPR will maintain the hoppers and implement a car inspection and refurbishment program. The railroad will replace, refurbish and upgrade discharge gates as needed.

The operating agreement will “ensure a secure hopper car supply for farmers and enhance operational fluidity,” said CPR President and Chief Executive Officer Fred Green in a prepared statement.

The Canadian government purchased 13,000 hopper cars in the 1970s and 1980s to support western grain export markets. Last year, government officials decided to retain ownership of the cars, but negotiate new operating and car refurbishment agreements with CPR and Canadian National Railway Co.