CP plans to spend more than C$500 million to buy grain transport cars

FILE PHOTO: A Canadian Pacific Railway crew works on their train at the CP Rail yards in Calgary, Alberta, April 29, 2014. REUTERS/Todd Korol/File Photo

(Reuters) - Canadian Pacific Railway Ltd said on Thursday it plans to invest more than C$500 million in its high-capacity grain transport cars.

The company said it placed an initial order to receive 1,000 of these cars from National Steel Car of Hamilton and expects more than 500 of them in service by the end of this year.

Canada’s second-largest railroad operator said it also plans to order about 5,900 grain transport cars over the next four years.

Earlier this year, transport problems, affecting both CP and rival Canadian National Railway Co, left rural grain storage sites brimming with grain in the country.

Reporting by Parikshit Mishra in Bengaluru; Editing by Shounak Dasgupta