U.S. Silica to construct new frac sand facility in
Wisconsin, Canadian Pacific to be exclusive rail service
provider
Minneapolis, MN - Canadian Pacific Railway Limited (TSX:
CP) (NYSE: CP) and U.S. Silica Holdings, Inc. (NYSE: SLCA),
today announced a multi-year agreement for the movement of
frac sand from U.S. Silica's newest mining and processing
facility in Sparta, Wisconsin.
U.S. Silica is the second largest domestic producer of
commercial silica, a specialized mineral that is a critical
input into oil and gas shale production and various
industrial and specialty products. The Company is building
a new frac sand facility located on the CP's rail line in
Sparta, Wisconsin that will produce high quality Northern
White sand for use in shale basins across the United States
and Canada.
Under the agreement, CP will become the exclusive rail
service provider at this facility for the movement of U.S.
Silica's frac sand to destination markets. The design of
the Sparta facility will allow U.S. Silica to build unit
trains of frac sand with a focus on shipments into the
Bakken shale in North Dakota to support the area's growing
need for proppant. The facility will produce and ship three
different grades of dry sand and is expected to be fully
operational in the first quarter of 2013.
Bryan Shinn, U.S. Silica's President and Chief Executive
Officer, said the company is "very excited to partner with
the Canadian Pacific to further enhance our extensive
logistics capabilities. We plan to deliver unit trains of
high quality frac sand into the Bakken shale and other
basins throughout the U.S. and Canada. This new partnership
will provide U.S. Silica greater access to critical,
rapidly growing markets, and will significantly strengthen
our overall offering."
"Canadian Pacific has proven expertise and has been
serving the energy industry in North America for many
years. We are pleased to continue to grow this
important market through our partnership with U.S.
Silica," said Jane O'Hagan, Canadian Pacific's
Chief Marketing Officer and EVP Marketing & Sales, who
noted CP's agreement with U.S. Silica is an important
component of the railway's growing energy strategy, which
focuses not just on outbound crude oil, but also on the
flow of input materials into shale and other energy
developments."
"Our agreement with U.S. Silica leverages the strength
of CP's network through Wisconsin with service to key
energy regions throughout North America" said
O'Hagan. "We are pleased to be in a position to provide
the capacity to our partners like U.S. Silica to respond to
the strong growth in the energy-related markets."
Canadian Pacific is the only North American railroad to
serve the Bakken Formation, the Alberta Industrial
Heartland and the Marcellus Shale. In addition, CP is the
only Class I railway to connect the energy hubs of the U.S.
Midwest, Alberta and Saskatchewan to the Northeast U.S.
Through its network to the Northeast U.S. and through the
Kansas City gateway to the U.S. Gulf Coast, CP is able to
partner with the energy industry to facilitate growth in
moving oil and energy-related materials. Each year, CP
moves hundreds of thousands of carloads of energy-related
products, including crude oil, sulphur, fuels, diluents and
materials key to the energy industry, such as pipe and frac
sand.
Note on Forward-Looking Information
This news release contains certain forward-looking
statements relating but not limited to our operations,
anticipated financial performance and business prospects.
Undue reliance should not be placed on forward-looking
information as actual results may differ materially.
Forward-looking statements are not guarantees of future
performance. By its nature, CP's forward-looking
information involves numerous assumptions, inherent risks
and uncertainties, including but not limited to the
following factors: changes in business strategies; general
North American and global economic, credit and business
conditions; risks in agricultural production such as
weather conditions and insect populations; the availability
and price of energy commodities; the effects of competition
and pricing pressures; industry capacity; shifts in market
demand; inflation; changes in laws and regulations,
including regulation of rates; changes in taxes and tax
rates; potential increases in maintenance and operating
costs; uncertainties of investigations, proceedings or
other types of claims and litigation; labour disputes;
risks and liabilities arising from derailments;
transportation of dangerous goods; timing of completion of
capital and maintenance projects; currency and interest
rate fluctuations; effects of changes in market conditions
and discount rates on the financial position of pension
plans and investments, including long-term floating rate
notes; and various events that could disrupt operations,
including severe weather, droughts, floods, avalanches and
earthquakes as well as security threats and governmental
response to them, and technological changes. These and
other factors are detailed from time to time in reports
filed by CP with securities regulators in Canada and the
United States. Reference should be made to
"Management's Discussion and Analysis" in
CP's annual and interim reports, Annual Information
Form and Form 40-F.
Except as required by law, CP undertakes no obligation to
update publicly or otherwise revise any forward-looking
information, whether as a result of new information, future
events or otherwise.
About U.S Silica Holdings Inc.
U.S. Silica Holdings, Inc., a Delaware corporation, is the
second largest domestic producer of commercial silica, a
specialized mineral that is a critical input into the oil
and gas proppants end market and a variety of attractive
industrial and specialty products end markets. During its
112-year history, U.S. Silica Holdings, Inc. has developed
core competencies in mining, processing, logistics and
materials science that enable it to produce and
cost-effectively deliver over 200 products to customers
across these end markets. U.S. Silica Holdings, Inc. is
headquartered in Frederick, Maryland.
For more information on U.S. Silica contact: Anita
Willis-Boyland at 301-682-0676 or
Willis-Boyland@USSilica.com
About Canadian Pacific
Canadian Pacific (CP: TSX) (NYSE: CP) operates a North
American transcontinental railway providing freight
transportation services, logistics solutions and supply
chain expertise. Incorporating best-in-class technology and
environmental practices, CP is re-defining itself as a
modern 21st century transportation company built on safety,
service reliability and operational efficiency. Visit
cpr.ca and see how Canadian Pacific is Driving the Digital
Railway.
CP Contacts:
Media
Ed Greenberg
Tel.: 612-849-4717
24/7 Media Pager:
855-242-3674
email: Ed_greenberg@cpr.ca
Investment Community
Janet Weiss
Tel.: 403-319-6170
email: investor@cpr.ca
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