CN, CNBM Forest Products Trading Ltd. strike deal for B.C. lumber export supply chain

Canadian National and China's CNBM Forest Products Trading Ltd. have reached an agreement to use CN's new lumber transload facility in Vancouver to increase the supply chain capacity for Canadian lumber exports. CN is scheduled to start operation of the lumber container export facility at its Thornton Yard in Surrey, B.C., in the fall of 2011. It will have an initial footprint of eight acres and throughput capacity of approximately 10,000 containers per year, with room to grow up to 20 acres. The facility, supplied with rail cars of lumber originating in communities in British Columbia, will make it easier to transport lumber to export markets in China. "Lumber exports to China now account for close to 25 percent of the western Canadian total and are expected to continue to increase at a fast pace in the years to come," said Jean-Jacques Ruest, executive vice president and chief marketing officer of CN. "CN aims to foster a world-class export supply chain for Canadian lumber in cooperation with CNBM Forest Products Trading, lumber producers in B.C. and ocean shipping lines serving Port Metro Vancouver." "It is imperative that we align expected demand with appropriate facilities and ocean capacity to accommodate the growth we see coming over the next few years," said Ken Kao, general manager of CNBM Forest Products Trading Shanghai. "We are pleased to be able to conclude an agreement with CN on capacity at the new Thornton transload facility. "CN continues to be a very important component of our global supply chain. With its access to both the ports of Vancouver and Prince Rupert and its commitment to support transload infrastructure, we can continue to meet our strategic growth objectives for the China market." CN also plans to increase lumber transload capacity at its Prince George Distribution Center to more than 30,000 containers annually. The facility was built in 2007 to support Port of Prince Rupert export opportunities. Ruest said, "We are confident that, together, CN and its transload facilities, CNBM Forest Products Trading, lumber mills and ports in B.C. and ocean shipping lines can help spur increased economic activity and job creation in the province through a highly-efficient supply chain that will help meet increasing demand for lumber in China."