CN’s supply chain strategy boosts coal shipments

Canadian National says its new supply chain approach to managing the flow of coal from mines to west coast terminals helped increase coal shipments to Vancouver and Prince Rupert by 91% through August. Other factors were rebounding Asian steel markets and business from new mines.

CN said the strategy is centered on “metrics that make the supply chain more transparent to CN managers—a weekly report shows how much coal is on hand at export terminals and mines, the arrival date of vessels at the ports, the amount of coal being shipped from mines, and the number of trains en route to and from the mines.”

“This end-to-end view of our coal supply chain, along with a focus on closer customer collaboration, improves coal logistics, which in turn allows coal producers to maximize sale opportunities," said Andy Gonta, CN vice-president of bulk commodities. “This approach also positions the railway and its customers to anticipate and solve any bottleneck issues well before they reach the boiling point.”

Neil Winkelmann, chief operating officer of Western Coal Corp., believes that “Western Coal will significantly expand its operations in northeastern British Columbia over the next three years, and can only do so with the support of key suppliers such as CN.”