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New UserCanadian National reports higher Q4 coal revenues on utility demand
29 Jan 2015
Canadian National railroad saw an increase in its coal business over the fourth quarter, spurred by an end-of-the-year jolt from US utilities, company officials said.
JJ Ruest, CN's executive vice president, said during a Q4 conference call that US coal revenue was a bright spot for the railroad, up 35% in Q4 because of a demand from utilities and bolstered by new services, including a metallurgical coal blending operation.
CN reported 127,000 coal carloads in Q4, up 27% from the year-ago quarter; coal revenues totaled C$172 million ($138 million), up 2% on a currency-adjusted basis; and average revenue per carload totaled C$1,354, down 20% on a currency-adjusted basis.
The main negative drag of Q4 revenue, Ruest said, was Canadian coal exports, which were down C$26 million mainly because of mine closures. Ruest said for 2014, Canadian coal revenues were down about C$100 million.
CN reported its total coal revenue, including US operations, for 2014 at C$740,000 million, up from C$713 million last year; total coal carloads at 519,000, up 25%; and an average revenue per carload at C$1,426, down 20% on a currency adjusted basis.
Ruest said CN was positive about its US coal prospects for 2015. CN serves coal export terminals in Vancouver and Prince Rupert, British Columbia, as well as the Thunder Bay terminal in Ontario.
The railroad also extends to the US Gulf Coast, reaching the Convent (Louisiana) Marine Terminal, formerly known as the IC RailMarine terminal. The Convent terminal is owned by Foresight Energy, the Illinois Basin coal producer.
Source: Platts