The Canadian National Railway Co. (TSX:CNR) was in bargaining mode over the weekend, pulling together two significant agreements across Canada.
On Monday morning, the railway operator signed a service agreement with Squamish Terminals Ltd. and several major forestry companies for the export of B.C. wood pulp to worldwide markets.
Also on Monday, CN reached a tentative agreement with the Canadian Auto Workers (CAW) union hours before a strike deadline.
The latter of the two agreements was struck after a “48-hour marathon negotiating session”, the CAW said, and will keep thousands of workers from the picket lines.
“This is a hard, won collective agreement, and I commend the master bargaining committee for their perseverance and dedication to resolving the issues important to our members across the country,” CAW National President Ken Lewenza said in a release.
In B.C., CN’s service agreement will ensure seven-day-a-week service to Squamish Terminals, a break bulk terminal located on Howe Sound north of Vancouver.
The terminal has agreed to unload pulp cars daily, while pulp producers Tembec Inc. (TSX:TMB), Canfor Pulp Ltd. Partnership (TSX:CFX), West Fraser Timber Co. Ltd. (TSX:WFT) and Daishowa Marubeni International Ltd. will work with the railway and Squamish to manage inbound and outbound pulp shipments.
“This agreement will allow us to better plan our transshipment of export pulp from rail to ocean-going vessel, including handling equipment and staffing required to operate the terminal,” said Squamish Terminals CEO Ron Anderson.
Canfor said the agreement would improve the supply chain for pulp producers and help the company expand into Asian markets.