Canadian Pacific Railway Limited today announced it has reached a one-year agreement with Teck Coal Ltd. (Teck) for the transportation of metallurgical coal from their CP served mines in southeast British Columbia to Kamloops and Vancouver area ports for export. Contract terms are confidential.

Coal freight rates will be similar to current rates, however rates are volume based and should Vancouver export volumes fall short of target levels, a higher rate will be realized. During the term of this new agreement CP and Teck intend to enter discussions toward a longer term arrangement.