CANADIAN PACIFIC MAGAZINE MAGAZINE

1 MAGAZINEVOLUME 17 | 2017 MAGAZINECANADIAN PACIFIC MAGAZINEVOL. 17 2017 PAGE 14 MODERNIZING LOCOMOTIVESV isit GE s manufacturing facility that is bringing old locomotives into the 21st 06 CLEAR TO PROCEEDSee what it takes to complete CP s largest signal and communications project in 24 MESSAGE IN A BOTTLEMeet Saskatchewan employees collecting bottles for a good to follow CANADIAN PACIFIC MAGAZINE stories on social media? Follow us on Instagram @canadianpacific for behind-the-scene stories, beauty shots and more! 01 LETTER FROM OUR CEO08 HOMES FOR HEROES 10 10 QUESTIONS 11 Q3 RESULTS 14 PHOTO JOURNAL22 OUR FLEET28 FROM THE ARCHIVESON THE COVER I am very impressed with GE s attention to detail in the complex rebuilding process.

2 It has been fasincating to capture this elaborate story of taking twenty-five-year-old locomotives and rebuilding them to make safer, more efficient, more technologically advanced locomotives. Dan Pope,Photographer 06 ALL SIGNALS GOCountless work blocks and thousands of hours later, Signals and Communications complete one of CP s largest signaling and engineering projects in recent history. Bringing with it operational enhancements that are slashing transit times and allowing us to serve our customers better. 24 RECYCLING HOPECP Saskatchewan recycling program keeps our yards clean and safe while granting wishes for sick children.

3 02DO YOU HEAR WHAT I HEARWith the help of a patented algorithm and some brainy Engineers, CP is using acoustic detectors to predict bearing failures before they occur. 04 WINTER IS COMINGW inter planning is an intrinsic part of running a successful railway and comes with year-round preparations and learnings. Neil Burke, Director Enterprise Risk and Crisis Preparedness, is CP s in-house weather guru and winter preparation planning specialist. CONTENTSWhen I started the year and my new role as CEO, I had some ideas of what I thought 2017 would look like.

4 I knew we were strong operationally and could continue to build on that strength. I knew we were financially stable and that if the economy started to pick up, which it has, we were well positioned to take advantage. And I knew that so long as we stayed true to our foundations of providing service, optimizing assets, controlling costs, prioritizing safety and developing people, the opportunities ahead of us were that all proved to be true, there were things I didn t know. It started with the town halls early in the year. I was encouraged and impressed by the frank nature of the questions and the willingness of our people to bring issues to light.

5 Since then, I have been making time to listen. I have sat with union representatives, I have been reading comments in employee exit interviews and we recently did an employee survey of our non-union staff. I m encouraged by much of our progress. However, as I learn more about how our people are feeling, some concerns have been raised. We have room for improvement, and much of it stems from how we treat each other. I firmly believe in the strength of diversity. I d like to be clear on my expectations and those of our leadership: when it comes to our culture there can be no tolerance for anything less than full respect of our fellow employees and all those with whom we interact each day.

6 I know we have work to do in this area, and I know it starts at the top with our policies and processes and in leading by example. This doesn t mean we can t have tough conversations or hold people accountable for doing their jobs safely and effectively, but it does mean we expect even difficult or disciplinary conversations to be handled with commitment to you is that I will continue to listen and act on the feedback you are providing. My ask of you is that you be a part of the solution by speaking up or taking a step back and asking yourself if you are acting in a professional, respectful manner to your fellow coworkers.

7 As we wrap up 2017, there is no doubt we are among the best performing railways. I m proud of what we ve accomplished, but even more driven by what s to come. Our operational turnaround took hard work and change; we ve proven we re capable of it. Ensuring we are a place where people feel valued and respected, building a culture that attracts the best and brightest talent in the industry, is well worth the effort. I hope you enjoy this edition of our CANADIAN PACIFIC MAGAZINE ; it s just a small representation of the great people and accomplishments from across our network.

8 Keep up the good work, and have a safe and happy holiday , Keith CreelPresident and CEOI FIRMLY BELIEVE IN THE STRENGTH OF DIVERSITY. I D LIKE TO BE CLEAR ON MY EXPECTATIONS AND THOSE OF OUR LEADERSHIP: WHEN IT COMES TO OUR CULTURE THERE CAN BE NO TOLERANCE FOR ANYTHING LESS THAN FULL RESPECT OF OUR FELLOW EMPLOYEES AND ALL THOSE WITH WHOM WE INTERACT EACH FROM THE CEO 1DO YOU HEAR WHAT I HEARAT A REMOTE SIDING IN SINGLE-TRACK TERRITORY, A CREW BRINGS TRAIN 498 TO A HALT. A WAYSIDE HOT BEARING DETECTOR HAS SENSED A WHEEL BEARING ON A FLATCAR LOADED WITH LUMBER THAT S GETTING HOTTER, AND HAS NOW EXCEEDED TOLERANCES.

9 THE CAR CANNOT SAFELY CONTINUE AS PART OF THE TRAIN. AS THE CREW BEGINS THE WORK OF REMOVING IT, A GRAIN TRAIN TRAVELING THE OPPOSITE DIRECTION IS WAITING AT A SIDING. AN INTERMODAL TRAIN FOLLOWING NO. 498 EASES TO A STOP TO WAIT OUT THE OPERATION. In this scenario, three trains are delayed by an hour. The customer s lumber shipment, needed to keep a distant lumberyard stocked, will sit for at least a day. And a mechanical truck and crew have to be deployed from the nearest terminal to go to the location to make the fix. There s a better way. CP has patented it, and other railroads are paying attention.

10 We can predict, using an acoustic detector, when the bearing is going to fail, says Kyle Mulligan, CP s Assistant Chief Mechanical Engineer, who holds a in predictive analytics. The model is able to see three months in advance. Railroaders sometimes refer to cars in the early stages of bearing failure as growlers due to the whining sound they make while in transit. Such cars are not yet at risk of suffering an overheated bearing, but some will go on to develop that condition. As early as 2003, CP s mechanical engineers were looking at this, and began using acoustic detectors to identify impending failures.