CN (TSX: CNR) (NYSE: CNI) and Teck Resources Limited (TSX: TECK.A
and TECK.B, NYSE: TECK) announced today a long-term rail agreement
for shipping of steelmaking coal from Teck’s four B.C. operations
between Kamloops and Neptune Terminals, and other west coast ports.
The agreement runs from April 2021 to December
2026, and will enable Teck to significantly increase shipment
volumes through an expanded Neptune Terminals. The agreement also
provides for investments by CN of more than $125 million to enhance
rail infrastructure and support increased shipment volumes to
Neptune.
"This agreement and the associated
infrastructure investment will provide us with rail capacity to
match the major upgrades underway now at Neptune Terminals,” said
Don Lindsay, President and CEO of Teck. “We expect this will lower
our total transportation costs and improve overall rail and
terminal performance.”
“CN is proud to sign this agreement with Teck
and to be playing such a significant role in moving the steelmaking
coal from Kamloops to the last mile at Neptune Terminals on
Vancouver’s north shore,” said JJ Ruest, President and Chief
Executive Officer of CN. “This significant volume commitment from
Teck is further proof of CN’s ability to serve our customers into
Canada’s trade gateway on the west coast. This agreement also
further enhances CN’s role as a supply chain enabler for Teck’s
shipments into Neptune Terminals.”
With this new agreement in place Teck and CN are
committed to working together to move significant volumes of
steelmaking coal to markets safely and efficiently.
The terms of this agreement are confidential.
Forward-Looking Statements - TeckThis press
release contains certain forward-looking statements within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and forward-looking information as defined in the
Securities Act (Ontario). Forward-looking statements and
information can be identified by the use of words such as
"expects", "intends", "is expected", "potential" or variations of
such words and phrases or statements that certain actions, events
or results "may", "could", "should", "would", "might" or "will" be
taken, occur, or be achieved. Forward-looking statements include
statements regarding lowering of Teck's total transportation costs
and improving overall rail and terminal performance and capacity
for increased shipment volumes through Neptune Terminals, as well
as infrastructure investments by CN.
Forward-looking statements involve known and
unknown risks, uncertainties and other factors, which may cause the
actual results, performance or achievements of Teck to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements.
Factors that may cause actual results to vary
include, but are not limited to, delay in completing the Neptune
Terminal expansion, operational difficulties including those caused
by inclement weather, changes in conditions in the steel or
seaborne steelmaking coal markets, unplanned disruptions in
production or transportation, failures in performance by
contractual counterparties including logistics service providers,
and other factors as detailed from time to time in Teck's reports
filed with Canadian securities administrators and the U.S.
Securities and Exchange Commission.
Certain of these factors are described in more
detail in Teck's annual information form and in subsequent public
filings with Canadian securities administrators and the U.S.
Securities and Exchange Commission. Teck does not assume the
obligation to revise or update these forward-looking statements
after the date of this document or to revise them to reflect the
occurrence of future unanticipated events, except as may be
required under applicable securities laws.
Forward-Looking Statements –
CN Certain statements included in this news release
constitute “forward-looking statements” within the meaning of the
United States Private Securities Litigation Reform Act of 1995 and
under Canadian securities laws. By their nature, forward-looking
statements involve risks, uncertainties and assumptions. The
Company cautions that its assumptions may not materialize and that
current economic conditions render such assumptions, although
reasonable at the time they were made, subject to greater
uncertainty. Forward-looking statements may be identified by the
use of terminology such as “believes,” “expects,” “anticipates,”
“assumes,” “outlook,” “plans,” “targets,” or other similar
words.Forward-looking statements are not guarantees of future
performance and involve risks, uncertainties and other factors
which may cause the actual results or performance of the Company to
be materially different from the outlook or any future results or
performance implied by such statements. Accordingly, readers are
advised not to place undue reliance on forward-looking statements.
Important risk factors that could affect the forward-looking
statements include, but are not limited to, the effects of general
economic and business conditions; industry competition; inflation,
currency and interest rate fluctuations; changes in fuel prices;
legislative and/or regulatory developments; compliance with
environmental laws and regulations; actions by regulators;
increases in maintenance and operating costs; security threats;
reliance on technology and related cybersecurity risk; trade
restrictions or other changes to international trade arrangements;
transportation of hazardous materials; various events which could
disrupt operations, including natural events such as severe
weather, droughts, fires, floods and earthquakes; climate change;
labor negotiations and disruptions; environmental claims;
uncertainties of investigations, proceedings or other types of
claims and litigation; risks and liabilities arising from
derailments; timing and completion of capital programs; and other
risks detailed from time to time in reports filed by CN with
securities regulators in Canada and the United States. Reference
should be made to Management’s Discussion and Analysis in CN’s
annual and interim reports, Annual Information Form and Form 40-F,
filed with Canadian and U.S. securities regulators and available on
CN’s website, for a description of major risk
factors.Forward-looking statements reflect information as of the
date on which they are made. CN assumes no obligation to update or
revise forward-looking statements to reflect future events, changes
in circumstances, or changes in beliefs, unless required by
applicable securities laws. In the event CN does update any
forward-looking statement, no inference should be made that CN will
make additional updates with respect to that statement, related
matters, or any other forward-looking statement.
About TeckTeck is a diversified resource
company committed to responsible mining and mineral development
with major business units focused on copper, steelmaking coal, zinc
and energy. Headquartered in Vancouver, Canada, its 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.
About CNCN is a true backbone
of the economy, transporting more than C$250 billion worth of goods
annually for a wide range of business sectors, ranging from
resource products to manufactured products to consumer goods,
across a rail network of approximately 20,000 route-miles spanning
Canada and mid-America. CN – Canadian National Railway Company,
along with its operating railway subsidiaries – serves the cities
and ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New
Orleans, and Mobile, Ala., and the metropolitan areas of Toronto,
Edmonton, Winnipeg, Calgary, Chicago, Memphis, Detroit, Duluth,
Minn./Superior, Wis., and Jackson, Miss., with connections to all
points in North America. For more information about CN, visit the
Company’s website at www.cn.ca.
Contacts: |
|
Teck Media |
Teck Investment |
Chris Stannell |
Fraser Phillips |
Public Relations Manager |
Senior Vice-President |
(604) 699-4368 |
Investor Relations & |
chris.stannell@teck.com |
Strategic Analysis |
|
(604) 699-4621 |
|
fraser.phillips@teck.com |
|
|
Contacts: |
|
CN Media |
CN Investor Relations |
Jonathan Abecassis |
Paul Butcher |
Senior Manager |
Vice-President |
Media Relations |
Investor Relations |
(514) 399-7956 |
(514) 399-0052 |
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