Afternoon Coffee: Rio Tinto Extends Payment Terms for Suppliers, Canadian Pacific Drops Bid to Buy Norfolk Southern Corp.

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Rio Tinto doubled its payment terms for suppliers to 90 days in a move to free up cash and reduce working capital. Rio Tinto Chief Executive Officer Sam Walsh reportedly wrote the company’s suppliers on March 31 notifying them of the change.

Canadian Pacific announced today it would no longer try to merge with Norfolk Southern Corp. Canadian Pacific was offering $28 billion to buy Norfolk. The bid was solicited and drew criticism from U.S. regulators.

The Keystone Pipeline is once again transporting oil after being shut down for a week following a pipeline leak and oil spill in South Dakota. TransCanada Corp. said it is still cleaning up the land where about 400 barrels of oil leaked.

Import volume at U.S. ports grew 3.7% in February, faster than expected. The National Retail Federation’s Global Port Tracker estimates import volume will rise 1.8% in the first half of 2016 compared to last year.

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