The head of Canadian Pacific Railway Ltd. says the country’s second-largest railway expects Asia’s demand for energy and commodity products will continue to be strong next year.
“So we see no reason on the foreseeable horizon that the softness would materialize in those markets,” Fred Green, chief executive of the rail company, told a conference in Montreal.
But Mr. Green warned its intermodal business, which carries retail goods, isn’t expected to return to strength soon.
“We’re seeing a lot of discomfort in consumer confidence and as a consequence would not expect the intermodal side of the business as being particularly robust this year or next year,” Mr. Green said.
Canadian Pacific has spent more than $1-billion this year in capital investments, such as new sidings and extensions, as well as longer trains.
Mr. Green said Wednesday the spending is expected to remain “strong” over the next several years.
Canadian Pacific transports coal, fertilizer, grain, automobiles, consumer goods and other materials across its vast North American rail network.
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