By Colin Kellaher
Canadian Pacific Railway Ltd. (CP.T, CP) Wednesday said it will continue to work with Teck Resources Ltd. (TECK.A.T, TECK) after the resources company shifts some coal volume to rival Canadian National Railway Co. (CNR.T, CNI) starting in 2021, but said the move could put a dent in its profits.
Canadian National and Teck earlier Wednesday announced a long-term deal for the shipment of steelmaking coal from Teck's four British Columbia operations between Kamloops and Canada's west-coast ports.
Canadian Pacific, whose 10-year agreement with Teck expires at the end of March 2021, said it will continue to serve Teck from the originating mine sites to its interchange with Canadian National at Kamloops.
The Calgary, Alberta-based railroad said the reduced work for Teck could reduce its earnings by about 1% in 2021 unless it is able to add offsetting volumes.
Canadian Pacific said it will focus on other opportunities from Kamloops to Vancouver, including work with other customers.
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