Calgary Alberta - Canadian Pacific (CP) will continue to work with Teck Resources Limited to develop customized service tailored to meet Teck's future shipping requirements, while maximizing the additional capacity opportunities in light of today's announcement.
 
Earlier today, Teck announced, starting in April 2021, it would begin moving a higher volume of coal with Canadian National (CN) via the interchange with CP at Kamloops, B.C. to the west coast.
 
CP will continue to serve Teck at the respective originating mine sites.
 
"We have long valued Teck as a customer and will continue to be an important supply chain enabler for them from their mine sites to our interchange with CN at Kamloops," said CP President and CEO Keith Creel.
 
"This announcement will allow us to focus on other, value-added opportunities from Kamloops to Vancouver. We are excited about the capacity opportunities this creates for us, to and from the west coast, and look forward to finding win-win opportunities for other customers within this integral corridor."
 
CP's ten year agreement with Teck expires at the end of March 2021.
 
The movement from the mine sites to Kamloops represents approximately two-thirds of the journey Teck's coal makes along CP's network today.
 
Based on CP's current estimates and assumptions with respect to its performance and financial condition, CP estimates that this change in length of haul for the affected volume could, without the addition of offsetting volumes, negatively impact earnings by approximately 1 percent in 2021.
 
"There is a significant amount of work required to ensure that the interchange at Kamloops is capable of accommodating the additional interchange volume in April 2021, and CP expects that all stakeholders will do their part. We will be working hard between now and Q1 2021, and beyond, to protect our fluidity through Kamloops for all shippers dependent on this critical corridor," Creel said.
 
Author unknown.

  It would seem that delivering Teck coal to Neptune Terminals in North Vancouver is less costly than delivering it to Westshore Terminals at Tsawwassen?