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19 January 2011

Avalanche Risk Port Breakdown Negatively Affect Teck Coal Shipments


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A loaded Canadian Pacific coal train works its way to port - Date/Photographer unknown.

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CP Mountain Subdivision British Columbia - Teck Resources Ltd. expects the mechanical breakdown at its main port terminal combined with the avalanche risk on its main rail line to crimp its first-quarter coal deliveries.
 
The company, on Wednesday, said CP Rail issued notice of force majeure on 17 Jan 2011, meaning forces beyond its control prevented it from maintaining regular deliveries on its main line through the Rogers Pass area of B.C.'s interior.
 
"I don't know if I could say if one [issue] is bigger," Marcia Smith, Teck's vice-president of corporate affairs said in an interview.
 
"Both have impacts, and for both, weather and Westshore, we're looking for a reasonably prompt resumption to normal levels."
 
She said the company would not disclose the number of its rail cars delayed by CP's restrictions, though she added that the transportation interruption has not slowed Teck's mine operations.
 
Teck is one of the world's top exporters of metallurgical coal, which is used to make steel.
 
CP spokesman Mark Seland said that since 14 Jan 2011, traffic on the railway's main line through Rogers pass have been reduced to 30 percent of normal levels because they've had to time movements to avoid Parks Canada's avalanche-control activities.
 
As of Wednesday, Seland added that traffic has increased to 80 percent of normal levels, but he couldn't say when they would be back to 100 percent.
 
"It's dependent on the weather and what [avalanche threats] still need to be taken down," Seland said.
 
"What remains to be managed in terms of snow removal from the past several days, and whatever happens going forward, will dictate [when the track is fully open], so it's difficult to predict."
 
CP's shares dipped 37 cents per share to close at $66.55 in trading Wednesday on the Toronto Stock Exchange.
 
In the meantime, Seland said CP is working directly with its customers to keep them informed about when traffic will be fully up to speed.
 
Derrick Penner.


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The size 4.5 slide at the Lanark snow shed about 50 kilometres east of Revelstoke crossed the Trans-Canada Highway and blocked the Illecillewaet River, causing the pooling visible in this image. Canadian Pacific's main line lies on the left side of the valley with a portion of their Lanark snowshed just visible to the left - Revelstoke Times.

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