Canadian Pacific Railway Ltd (NYSE:CP) (TSX:CP) established a new multi-year agreement with CMA CGM Group. The financial terms of the arrangement were not disclosed.
What Happened: CP will be CMA CGM's primary rail provider in Canada, servicing the ports of Vancouver, Montreal, and Saint John, N.B.
The strategic alignment offers natural synergies that support sustainability and innovation, adding density to key lanes and strengthening operating efficiency.
Why It's Important: With access to the Ports of Vancouver and Montreal, and a strategic connection to Port Saint John via the New Brunswick Southern Railway, CP will be able to transfer the majority of CMA CGM's freight from Canadian ports to key Canadian and U.S. Midwest inland markets.
This agreement also recognizes future growth prospects associated with CP's proposed merger with Kansas City Southern.
Price Action: CP shares are trading higher by 0.83% at $71.81 on NYSE and higher by 0.86% at C$90.98 on TSX on the last check Tuesday.
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