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CN and pulp companies agree to improve supply chain in B.C.

CN, Squamish Terminals Ltd., and four Western pulp producers have reached an agreement in principle on measures that will result in improvements in supply chain efficiencies for the export of wood pulp from B.C. pulp mills to markets worldwide.

CN, Squamish Terminals Ltd., and four Western pulp producers have reached an agreement in principle on measures that will result in improvements in supply chain efficiencies for the export of wood pulp from B.C. pulp mills to markets worldwide.

Under the agreement, CN will provide seven-day-a-week service to Squamish Terminals, which in turn will guarantee to unload pulp cars daily. Tembec Inc., Canfor Pulp Limited Partnership, West Fraser Timber Co. Ltd., and Daishowa Marubeni International Ltd. will work with both CN and Squamish Terminals to manage inbound traffic flows to match export vessel schedules.

Squamish Terminals is located on Howe Sound, just 32 nautical miles north of Vancouver, is one of the largest pulp handling terminals on the North American West coast.

“Seven-day-a-week unloading at the terminal will help to reduce potential issues in the supply chain and will support our efforts to ensure customers receive more consistent supplies,” says Marc Leblanc, logistics manager of Tembec. “Such increased supply chain efficiencies are consistent with Tembec’s goal of achieving maximum reliability of product delivery and superior service for our customers. This will be key to capturing increased market share for our product.”

Ron Anderson, chief executive officer of Squamish Terminals, says the agreement will allow the port to better plan its transshipment of pulp from rail to ocean-going vessel, including handling equipment and staffing required to operate the terminal. “A more efficient supply chain will further enhance our service level to our customers and generate important productivity gains.”

Rick Pingel, general manager, Global Logistics, Canfor Pulp, states that the agreement will add greater transparency and accountability to the supply chain.

CN’s export wood pulp shipments to Asia in 2010 were strong and CN is forecasting continued strong shipments in 2011.