TORONTO – Canadian Pacific Railway is cutting 520 jobs, or 3.3 percent of its work force, and is restructuring its northeastern U.S. network.

“We are not satisfied with the current rate of progress toward our long-term financial objectives,” Rob Ritchie, CEO of Canadian Pacific Railway, said in a statement.

Ritchie said the higher value of the Canadian dollar, which has risen more than 15 per cent this year against the U.S. dollar, was responsible. It erodes the value of CPR’s income earned in U.S. dollars.

“This situation has been exacerbated by the unexpected rise in the value of the Canadian dollar, added to sustained high fuel prices.”

The Calgary, Alberta-based company intends to restructure its northeastern U.S. network, operated as the Delaware & Hudson Railway, to improve economic performance.

It said it “has begun discussions with a number of interested parties about ways to generate higher traffic volumes and greater earnings.”

The company said it would write down its investment in its northeastern U.S. operations by $55.5 million after taxes to reflect the operation’s current value and the impact of restructuring.

“We believe our northeastern U.S. network has additional earnings potential and we are prepared to take the measures necessary to make it

a success,” Ritchie said.

CPR employs 15,800 people to operate a 14,000-mile network in Canada and the United States. About three-quarters of the employees work in Canada.

Earlier this year, CPR announced 300 job cuts. The railway plans to cut 370 jobs in 2003, 330 in 2004 and 120 in 2005.