Diversified miner Teck Resources has entered into a long-term rail agreement with Canadian Pacific Kansas City (CPKC) for the transportation of steelmaking coal from its operations in south-eastern British Columbia.
The agreement builds on existing services in place and runs until the end of 2026.
In support of building green transportation corridors, CPKC and Teck will collaboratively develop a 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 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.
“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.”
“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.