CP gives up on Powder River Basin expansion plan

RELATED TOPICS: CLASS 1 FREIGHT RAILROADS
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CALGARY, Alberta – Canadian Pacific is abandoning plans to enter Wyoming's Powder River Basin coal field, the company said in a press release. It is indefinitely deferring plans to build into the Powder River Basic because of weakened demand for thermal coal in the domestic market

The company will take a fourth quarter pre-tax non-cash charge of approximately $180 million by doing so. The costs include the option, engineering design costs, land, and capitalized interest.

CP acquired the Dakota Minnesota & Eastern Railroad in 2007, which held the construction option. It had planned build a 260-mile extension the PRB.
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