August 27, 2008

THUNDER BAY PORT AUTHORITY

The largest single piece of cargo ever unloaded in Thunder Bay arrives from Japan. The 450-tonne reactor, built by Kobe Steel is placed aboard special rail cars and will remain in Thunder Bay until it is shipped west in November.

Transportation Logistics

Oilsands equipment for Northern Alberta will move via Thunder Bay, Ontario

Strategic partnership between CN, oil firm also brings investment in Alberta rail line

RICHARD GILBERT

staff writer

A new Canadian shipping route will allow cargo to flow to oilsands construction sites in Northern Alberta from Thunder Bay, Ontario.

The route is the result of a strategic partnership between CN Rail and the Port of Thunder Bay.

Canadian Natural Resources Limited (CNRL) is involved in the extraction of oilsands reserves through its Horizon Oilsands project, located 70 kilometres north of Fort McMurray.

Construction of the first phase is nearly complete, as the company is scheduled to start production of oil in the third quarter of 2008.

A major milestone for the project occurred earlier this month, when a giant component arrived on a vessel in Thunder Bay from Japan.

The port announced that the delivery of the 450-tonne reactor marked the start of a strategic partnership with CN rail to create a new route for oilsands project cargo.

“We are delighted to work with CN to provide this new Canadian gateway to western Canada’s oilsands,” said Tim Heney, CEO of the Thunder Bay Port Authority.

“The Port of Thunder Bay has a long history serving the needs of western Canada and we are dedicated to the integration of the marine and rail needs of transportation.”

The arrival of the massive piece of machinery in Thunder Bay marked the completion of a 12,249-nautical mile journey from the port of Higashi Harima, Japan, via the Panama Canal.

The reactor is 35 meters long, 4.191 metres wide and 4.73 metres tall.

It has a gross loaded-on-rail weight of more than 590,000 kilograms and is the largest single piece of cargo ever unloaded in Thunder Bay.

According to a spokesperson with investor relations at CNRL, the Diesel Hydrotreater Reactor was built by Kobe Steel in Japan and is part of the second and third phases of the Horizon project.

The reactor was placed aboard special railcars and will stay in Thunder Bay until November.

Transportation of the reactor to the site is expected to take about three weeks

The route is important because West Coast ports are not an option for such shipments because there is not enough clearance to make it through the Rocky Mountains.

Prior to the opening of the new route, this type of oversize cargo had to go through Houston, Texas, or Duluth, Minn., to be shipped north over the border to Alberta.

As part of a new initiative to open up the Thunder Bay rail route to the flow of project cargo destined for Ft. McMurray, CN paid $25 million in February for the 202-mile Athabasca Northern Railway between Boyle and Lynton, Alta.

Since the purchase, CN has made improvements to the rail line as part of a three-year, $135-million rehabilitation project.

“This is a significant investment to upgrade the important rail corridor serving Alberta’s booming oilsands region,” said Jim Vena, senior vice-president of CN’s Western Region.

“Our commitment to infrastructure improvements will enhance safety and capacity, and reduce shipping time.”

The project involves the replacement of five track miles of rail and upgrading 37 bridges in 2008.

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