Canadian Pacific Kansas City enters steelmaking coal supply chain agreement

Credit: CPKC

Canadian Pacific Kansas City Limited (CPKC) and Teck Resources Limited (Teck) have announced their 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 programme 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 (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.

Keith Creel, CPKC President and CEO, said: “We are pleased to have reached this agreement continuing our long history of success providing safe and efficient transportation solutions to Teck. CPKC is proud to work with organisations 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 programme.”

Jonathan Price, CEO of Teck, said: “This collaboration with CPKC to pioneer hydrogen locomotive technology supports our climate action strategy and our objective of achieving net zero by 2050. 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.”

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.