Teck and CPKC Announce Long-term Rail Agreement
Canadian Pacific Kansas City Limited (TSX: CP) (NYSE: CP) (“CPKC”) and Teck Resources Limited (TSX: TECK.A) (TSX: TECK.B) (NYSE: TECK) (“Teck”) announced today that CPKC and Teck Coal Limited have entered into a long-term rail agreement for the transportation of steelmaking coal from Teck’s four operations in southeastern B.C. The agreement builds on existing services in place and runs until the end of 2026.
In support of building green transportation corridors and as a shared commitment to sustainability, CPKC and Teck intend to collaboratively develop a unique pilot program that integrates the use of CPKC’s hydrogen locomotives into Teck’s steelmaking coal supply chain. It is anticipated that this effort will reduce greenhouse gas emissions, with testing commencing in early 2024.
The companies will also work together to increase the resiliency of the Canadian supply chain with investment in infrastructure and technology from origin through to destination.
“This collaboration with CPKC to pioneer hydrogen locomotive technology supports our climate action strategy and our objective of achieving net zero by 2050,” said Jonathan Price, CEO, Teck. “The agreement complements our Neptune Terminals investment and other secured West Coast port capacity to support the efficient movement of our high-quality Canadian steelmaking coal to our global customers.”
“We are pleased to have reached this agreement continuing our long history of success providing safe and efficient transportation solutions to Teck,” said Keith Creel, CPKC President and Chief Executive Officer. “CPKC is proud to work with organizations such as Teck that share our passion to be leaders for a sustainable future as we look to take the next step in the development of our innovative hydrogen locomotive program.”
This agreement reflects both companies’ commitments to work together to reduce emissions and enhance supply-chain reliability to supply the resources required for a low carbon future.
With its global headquarters in Calgary, Alta., Canada, CPKC is the first and only single-line transnational railway linking Canada, the United States and México, with unrivaled access to major ports from Vancouver to Atlantic Canada to the Gulf of México to Lázaro Cárdenas, México. Stretching approximately 20,000 route miles and employing 20,000 railroaders, CPKC provides North American customers unparalleled rail service and network reach to key markets across the continent. CPKC is growing with its customers, offering a suite of freight transportation services, logistics solutions and supply chain expertise. Visit cpkcr.com to learn more about the rail advantages of CPKC.
As one of Canada’s leading mining companies, Teck is committed to responsible mining and mineral development with major business units focused on copper, zinc, and steelmaking coal. Copper, zinc and high-quality steelmaking coal are required for the transition to a low-carbon world. Headquartered in Vancouver, Canada, Teck’s shares are listed on the Toronto Stock Exchange under the symbols TECK.A and TECK.B and the New York Stock Exchange under the symbol TECK. Learn more about Teck at www.teck.com or follow @TeckResources.
Source: Canadian Pacific Kansas City Limited