Canadian Pacific Railway (CP) expects to invest approximately $1.55 billion in its capital programs by 2022, primarily in rail and road.

These capital programs will be financed with cash generated from operations.

About 60 to 70% of planned capital programs are for roads and highways.

The company also expects 15-20% of those investments to be allocated to rolling stock, including rail cars and locomotive upgrades.

In addition, Canadian Pacific projects that 5% will be allocated to information services and another 5% to buildings, while «other investments» will be 5 to 10 percent.

Previously, cash used in investing activities was $13.73 billion in 2021, an increase of $11.7 billion, or 576%, from $2.03 billion in 2020.

This increase was primarily due to cash payments made to KCS and its shareholders for the KCS acquisition, compared to the DRTP acquisition in 2020, as well as lower property additions during 2021.

Cash used for investing activities was $2,030 million in 2020, an increase of $227 million, or 13%, from $1,803 million in 2019. This increase was primarily due to the acquisition of DRTP in 2020, compared to the acquisition of CMQ in 2019.

Canadian Pacific

Roads and highways expenses include the replacement and improvement of the company’s road infrastructure.

Of the $970 million additions in 2021 (2020: $1,161 million), approximately $907 million (2020: $1,008 million) was spent on refurbishing depleted assets, namely rail, sleepers, ballast, signals, and bridges.

In addition, approximately $10 million (2020: $25 million) was spent on positive train control compliance requirements and $53 million (2020: $128 million) was invested in network improvements and growth initiatives.

Investments in rolling stock cover locomotives and railcars. In 2021, locomotive spending was approximately $121 million (2020: $126 million) and focused on continued reinvestment in CP’s existing locomotive fleet.

Railcar investment of approximately $176 million (2020: $127 million) focused primarily on refurbishing depleted assets, including the acquisition of covered grain hoppers.

In 2021, CP invested approximately $47 million (2020: $45 million) in information systems software focused primarily on streamlining and improving business systems and providing real-time data.

Building investments were approximately $105 million (2020: $103 million) and included items such as facility improvements, renovations, and store equipment.

Other items were $132 million (2020: $126 million) and included investments in containers, work equipment and vehicles.