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1/25/2011
Rail News: Rail Industry Trends
CN, wood pulp supply chain partners agree to boost efficiencies
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Yesterday, CN announced it reached an agreement in principle with Squamish Terminals Ltd., Tembec Inc., Canfor Pulp Limited Partnership (CPLP), West Fraser Timber Co. Ltd. (WFT) and Daishowa Marubeni International Ltd. on measures to improve supply chain efficiencies for exporting wood pulp from British Columbia pulp mills to worldwide markets.
The pact calls for CN to provide seven-day-a-week service to Squamish Terminals, which in turn will guarantee to unload wood pulp cars daily. Tembec, WFT, CPLP and Daishowa-Marubeni will work with both the Class I and Squamish Terminals to manage inbound traffic flows to match ocean vessel schedules.
CN's export wood pulp shipments to Asia were strong last year and the railroad is forecasting continued growth in 2011, in part because of the agreement.
“All the stakeholders in this supply chain will benefit from increased efficiencies and throughput, and stand ready to increase their share of growing wood-pulp markets worldwide,” said Vee Kachroo, CN’s vice president of industrial products, in a prepared statement.
The pact calls for CN to provide seven-day-a-week service to Squamish Terminals, which in turn will guarantee to unload wood pulp cars daily. Tembec, WFT, CPLP and Daishowa-Marubeni will work with both the Class I and Squamish Terminals to manage inbound traffic flows to match ocean vessel schedules.
CN's export wood pulp shipments to Asia were strong last year and the railroad is forecasting continued growth in 2011, in part because of the agreement.
“All the stakeholders in this supply chain will benefit from increased efficiencies and throughput, and stand ready to increase their share of growing wood-pulp markets worldwide,” said Vee Kachroo, CN’s vice president of industrial products, in a prepared statement.
