CN and Forest Products Trading strike BC lumber deal

VANCOUVER: CN and China’s CNBM Forest Products Trading Ltd. have agreed to use CN’s new lumber transload facility in Vancouver to increase the supply chain capacity for Canadian lumber exports. CN said it will start operation of the facility at its Thornton Yard in Surrey, BC this fall. The facility will have a footprint of eight acres, with room for an additional 12 acres, and an annual throughput capacity of about 10,000 containers.

“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, CN’s executive vice-president and chief marketing officer. “CN aims to foster a world-class export supply chain for Canadian lumber in cooperation with CNBM Forest Products Trading, lumber producers in BC, and ocean shipping lines serving Port Metro Vancouver.”

CN also announced plans to increase lumber transload capacity at its Prince George distribution centre to more than 30,000 containers annually. Prince George, located 500 miles east of Prince Rupert, is close to BC’s large fibre reserves and other natural resources.