BNSF
More moderate temperatures across BNSF’s Northern Corridor have enabled the Class I’s reduction in backlogs and trains holding as its command centers in multiple operating divisions continue to manage recovery efforts from the prolonged and extreme winter weather conditions. According to BNSF, several rerouting options have been utilized to move affected traffic, which, the Class I says, has also contributed to its progress.
As reported, BNSF says it experienced a derailment on the evening of Feb. 24 near Forsyth in Montana, approximately 100 miles northeast of Billings. BNSF teams and contractors are completing track repairs and service is expected to be restored later this evening. “The outage from the derailment was a setback in our recovery efforts. However, from Mechanical teams working tirelessly to service our locomotive fleet to Engineering teams responding to track issues around the clock, all available resources are on hand to help restore normal operations as quickly as possible,” BNSF said.
With temperatures stabilizing, favorable operating conditions are expected across BNSF’s North Region with above-average temperatures in the coming days, the Class I said. “While avalanche risks are diminishing, we are still monitoring conditions in parts of Montana where risk remains in several areas. As temperatures rise, we also closely watch for mudslides and flooding caused by snowmelt. BNSF teams remain prepared to respond as quickly as possible to any additional service disruptions.”
UP
Vitera US recently celebrated the first day of construction of its new state-of-the-art grain facility in Dalhart, Texas. The new facility will include a modern grain handling system and loop track served by UP.
This groundbreaking ceremony, the company says, “marks a milestone in Viterra’s ongoing commitment to strengthen our service to customers in West Texas.”
“Union Pacific appreciates and values the relationship we have with Viterra to provide safe and reliable service to this growing agricultural market for years to come,” the Class I stated in a LinkedIn post.
CPKC
CPKC on Feb. 27 announced that the TSX has accepted its notice of intention to implement a normal course issuer bid (NCIB) to purchase, for cancellation, up to 37,348,539 common shares in the capital of CPKC or approximately 4% of CPKC’s common shares issued and outstanding as at Feb. 18, 2025. The NCIB is expected to commence on March 3, 2025, and is due to terminate on March 2, 2026.
“Having delivered on our commitments to strengthen our balance sheet and reduce leverage following the transformational combination of Canadian Pacific and Kansas City Southern into CPKC, we are pleased to announce this new share buyback program,” said CPKC President and CEO Keith Creel. “CPKC’s ability to generate strong free cash flow and the pipeline of growth opportunities in front of us give us the confidence to reinstitute our share buyback program. We are committed to returning cash to shareholders in a disciplined, opportunistic manner.”
Purchases of CPKC’s common shares under the NCIB may be made through the facilities of the TSX, the New York Stock Exchange (NYSE) and alternative trading systems by means of open market transactions or by such other means as may be permitted by the TSX, the NYSE and under applicable securities laws, including automatic purchase programs, private agreements or share repurchase programs pursuant to issuer bid exemption orders issued by applicable securities regulatory authorities. The price CPKC will pay for any common shares will be the market price at the time of purchase or such other price as may be permitted by the rules of the TSX. Any purchase made under an exemption order issued by a securities regulatory authority will generally be at a discount to the prevailing market price. Any common shares acquired through the NCIB will be immediately cancelled.
In connection with the NCIB, CPKC says it expects to enter into an automatic purchase plan agreement (Plan) with its designated broker to allow for purchases of its common shares during internal quarterly blackout periods. The timing and amount of such purchases would be at the discretion of the broker based on parameters established by CPKC prior to any blackout period. Outside of these periods, common shares will be purchased in accordance with management’s discretion, subject to TSX rules and applicable law. The Plan has been reviewed and pre-cleared by the TSX and may be terminated by CPKC or its broker in accordance with its terms or will terminate on the expiry of the NCIB. CPKC says it expects the Plan to be implemented on March 3, 2025. All purchases of common shares made under the Plan will be included in determining the aggregate number of common shares purchased under the NCIB. If adopted, the Plan will constitute an “automatic securities purchase plan” under applicable Canadian securities laws and will be adopted in accordance with applicable U.S. securities laws, including the requirements of Rule 10b5-1 under the U.S. Securities Exchange Act of 1934.
As of Feb. 18, 2025, CPKC had 933,713,487 common shares issued and outstanding, according to the Class I. Except as permitted by TSX rules, CPKC will not acquire through the facilities of the TSX more than 351,655 common shares during a trading day, being 25% of the average daily trading volume of CPKC common shares on the TSX for the six most recently completed calendar months prior to the date of approval of the bid by the TSX and, in addition, will not acquire per day on the NYSE more than 25% of the average daily trading volume for the four most recently completed calendar weeks preceding the date of purchase, subject to, in both cases, certain exceptions for block purchases.
The actual number of common shares that will be repurchased under the NCIB, and the timing of any such purchases, will be determined by CPKC, subject to the limits imposed by the TSX, the NYSE and applicable securities laws in Canada and the United States, according to the Class I. There cannot be any assurances as to how many common shares, if any, will ultimately be acquired by CPKC.
CPKC says it believes that the purchase of its shares from time to time is an “appropriate and advantageous use of its funds.”
