CN opens 'first of its kind' fuel terminal in Ontario
7/10/2024
By Jeff Stagl, Managing Editor
In June, CN marked an event aimed at helping enhance the efficiency, reliability and sustainability of fuel distribution in Ontario.
The Class I inaugurated a new high-efficiency loading fuel terminal in Vaughan. The terminal was developed through a partnership between CN, the city of Vaughan, refined and renewable fuel supplier Terminal Norcan, and international fuel distributor and retailer Parkland Corp.
Located at CN’s Mac Yard within the greater Toronto area, the terminal enables fuel producers to supply their key markets and customers in any direction with the lowest truck miles, said CN spokesperson Ashley Michnowski in an email. CN’s International Bulk Services subsidiary manages the terminal and provides rail-car switching and fuel transloading services at the facility.
The terminal will help lower greenhouse-gas emissions since many of the current fuel markets are served by trucks, which need significantly longer route miles to reach their destinations, said Michnowski.
“CN is committed to help offer sustainable solutions to mitigate greenhouse-gas emissions along supply chains, and this project is one of many we have been a part of recently,” she said.
The idea for a new fuel terminal was hatched three years ago during a joint discussion between CN and Norcan officials. They sought a way to address a fuel shortage issue in Ontario’s marketplace due to the deregulation of local pipelines and a lack of refinery capacity.
In March 2021, CN entered into a memorandum of understanding with Norcan to develop a fuel terminal. The first loading of trucks at the Vaughan facility occurred June 18.
The terminal serves as another example of the railroad’s dedication to safety and commitment to environmental responsibility and state-of-the-art technology, CN officials say.
The facility also aligns with the Class I’s growth strategy to expand its eastern corridor network, said Michnowski.
CN, the city of Vaughan, refined/renewable fuel supplier Terminal Norcan and international fuel distributor/retailer Parkland Corp. teamed up to develop the terminal. CN CN, Terminal Norcan, Parkland and the city each played a key role in the project. The railroad provided key real estate, capital and supply-chain expertise to ensure the most efficient fuel movements across its network, said Michnowski.
Meanwhile, Norcan contributed capital plus provided its fuel terminal building expertise; Parkland chipped in its know-how as a key fuel supplier; and the city helped in the planning stages to ensure all fire and regulatory requirements were met.
“This terminal would not be possible without the collaboration of all partners,” said Michnowski.
While the facility is the first of its kind in the area, CN has extensive experience in that type of fuel business since the railroad already serves many refineries and transload terminals along its network, she said.
Although the Vaughan terminal just opened, the Class I already is prepping to expand the facility. CN has signed an agreement for phase 2 of the project, said Michnowski.
The next phase — which currently is in the due diligence stage — calls for constructing additional fuel tanks, another truck loading bay and six more unloading tracks.
“Once completed, phase 2 will allow CN to more than double the capacity of the current facility,” said Michnowski.
