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CN, Coalspur Mines reach understanding on future export coal moves


CN recently signed a memorandum of understanding with Coalspur Mines Ltd. to develop a high-quality logistics supply chain to transport export thermal coal from Coalspur's Vista project near Hinton, Alberta, to western Canadian ports beginning in 2015, when coal production begins at the site.

The memorandum establishes the framework for a future agreement; the parties expect to negotiate a definitive transportation pact in 2012, CN officials said in a prepared statement. The railroad would transport coal from the Vista site to West Coast ports, including Ridley Terminals Inc. at the Port of Prince Rupert, British Columbia.

CN and Coalspur plan to jointly design and build a siding to accommodate the loading of 175-car unit trains.

“CN has developed a comprehensive, end-to-end supply chain strategy to manage coal flows from mines to West Coast terminals … [which] coupled with strong customer collaboration, will help Coalspur maximize sales opportunities in global markets,” said Jean-Jacques Ruest, CN’s executive vice president and chief marketing officer.

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More News from 11/10/2011