Canadian Pacific Railway: Addressing Climate Change. UN Conference on Climate Change (COP 11) December 3, 2005

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1 Canadian Pacific Railway: Addressing Climate Change UN Conference on Climate Change (COP 11) December 3, 2005

2 CPR Network Canadian Pacific Railway Limited operates a transcontinental railway in Canada and the United States. Its 13,800-mile rail network serves the principal centres of Canada, from Montreal to Vancouver and the U.S. Northeast and Midwest regions.

3 CPR and the Environment CPR is committed to conducting its operations and activities in a manner that: Protects the environmental health and welfare of its employees and others who may be affected by its operations and activities; Protects the natural environment to meet the needs of today without hindering the ability of society to meet future needs; Meets or exceeds environmental requirements of government applicable to its operations and activities; Keeps its employees and the public informed about its environmental plans through communications programs

4 Source of Greenhouse Gas Emissions (GHG) Percent of Overall GHG Emissions (CO2 eq) Canadian Pacific Railway (1997) Greenhouse Gas Emissions Inventory (1997) Locomotives (CAN) Locomotives (US) Refrigeration Fire Systems Power % of GHG Emissions at CPR are from Locomotives

5 Locomotive GHG Emissions CPR s 2004 GHG (CO2eq) emissions were 6.5% above 1990 with a 50% inc rease in GTM over the same period (emissions per unit of work - improved 29%). CPR Performance - Canada - CO 2eq Emissions ( ) CO2 eq (kilotonnes) CO2eq kg/1000 GTM Year CO2 eq (tonnes '000) CO2 eq kg/1000 GTM

6 Action on GHG Emissions 1. Idling Reduction - Automatic and Manual 2. Locomotive Replacement Fleet Renewal and New Technology 3. Operational Efficiency 4. Other Initiatives Track Lubrication and Car Fleet

7 Idling Reduction Automatic Measures Locomotives idle approximately 50% of the time they are running. Specifications for all new locomotives include automatic start/stop systems. Over 60% of the current fleet is equipped with an automatic device to shut down the locomotive based on ambient conditions. Conserving 40 to 160 litres fuel/day.

8 Idling Reduction Manual Measures Locomotives must be shut down when: The ambient temperature is expected to remain above 5 C The locomotive will be idle for 30 minutes or longer. Trains are being staged due to maintenance track blocks, set off or on shop tracks.

9 Idling Reduction US EPA SmartWay Program Voluntary partnership between various freight industry sectors and US EPA Establishes incentives for fuel efficiency improvements and GHG emissions reductions CPR became a partner in 2005 and is currently developing its SmartWay Action Plan.

10 Locomotive Replacement Fleet Renewal 1995 CPR begins significant investment in more fuel efficient AC locomotives. As of December 31, 2004, 52% of the road freight locomotive fleet are AC traction locomotives. With their improved hauling capacity, CPR has been able to retire 810 older locomotives from service. As a result, the average age of the road freight locomotive fleet is now only 15 years.

11 Success to Date CPR - Fuel Efficiency Litres / 000 GTM % Improvement Projected % of the overall fleet is compliant with the US EPA emissions rules These locomotives handle 67.4% of the total GTM, using 57.2% of the total fuel.

12 Locomotive Replacement New Technology Green Goat Hybrid Switcher Tested in several CPR yards in Experience 40% less fuel use with lower maintenance costs. Other benefits include up to 90% reductions in NOx and particulate matter emissions CPR purchases 35 Green Goat locomotives.

13 Operational Efficiency: Co-Production CPR and CN CPR and Norfolk Southern BC Fraser Valley Sudbury and Parry Sound Thunder Bay and Franz Port of Vancouver Edmonton and Coho NE United States Chicago Routing

14 Operational Efficiency: Maintenance and Handling Locomotive Maintenance Engine Performance Battery Starters Cab Insulation Fuel Injectors Timing Start/Stop Devices Locomotive Handling Pacing Charts Reduce use of power braking at higher throttle positions, encourage dynamic brake. Restrict train speed to 45 mph for non-expedited traffic when in specific throttle positions. HP/Ton Guidelines - fuel savings from isolating excess HP (locomotive units) Reinforced by locomotive downloads and real-time feedback testing.

15 Operational Efficiency: Fluidity and Capacity Integrated Operating Plan Scheduled trains Consolidation of cars with similar destinations into blocks Increased fluidity Train weights have increased by 17% and fuel consumption rates decreased 19% since Western Capacity Expansion

16 Other Initiatives Improved Track Lubrication Top of Rail Friction Modifiers Wayside Track Gauge Lubrication Double-Stack Intermodal Trains Aluminum Coal Cars Expressway

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