VANCOUVER — Canadian Pacific Railway and Teck Resources announced a 10-year agreement to transport Teck’s steelmaking coal from its five mines in southeast BC to Vancouver area ports.
“This agreement gives Teck the certainty we need to realize our growth strategy in coal and to deliver our increased production on a timely basis to our key markets,” said Don Lindsay, Teck President and CEO.
The agreement reflects the companies’ commitment to work together to achieve growth in the volume of coal shipped through a range of economic and marketplace dynamics and provides for flexibility over the long term. The agreement provides for investments by CP that enhance coal handling capacity to provide for Teck’s volume growth.
“CP is delighted to have participated in the creation of a unique and collaborative agreement that sets the foundation for the next decade,” said CP President and CEO, Fred Green. “Our ongoing dialogue has provided new and deeper insight into Teck’s growth objectives. Importantly, the agreement provides the stability and confidence to grow our business and enhance this world class supply chain for our mutual benefit.”
This is a confidential agreement which commences April 1, 2011.