CPKC, Teck Announce Long-Term Rail Agreement

Canadian Pacific Kansas City (CPKC) and Teck Coal Limited (Teck) have entered into a long-term rail agreement for transportation of steelmaking coal from Teck’s four operations in southeastern, B.C., the Class I announced May 4.

This agreement, which builds on existing services in place and runs until the end of 2026, “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,” the Class I stated in a release.

According to CPKC, “in support of building green transportation corridors and as a shared commitment to sustainability,” the railroad 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, CPKC says, that this effort will reduce greenhouse gas (GHG) 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, CPKC said.

“We are pleased to have reached this agreement continuing our long history of success providing safe and efficient transportation solutions to Teck,” said CPKC President and CEO Keith Creel. “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 collaboration with CPKC to pioneer hydrogen locomotive technology supports our climate action strategy and our objective of achieving net zero by 2050,” said Teck CEO Jonathan Price. “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.”