The railroad also announced a deal to commit the facility's capacity to CNBM Forest Products Trading, China's largest lumber buyer.
The transload facility will be located on eight acres at CN's Thornton Yard in Surry, B.C., with an initial capacity of 10,000 containers per year and with room to grow to 20 acres.
Lumber exports to China now account for about 25 percent of the total from Western Canada and are expected to grow at a fast pace as China continues to experience a building boom.
CN also announced that it plans to increase lumber transload capacity at its Prince George Distribution Center, which supports exports from the Port of Prince Rupert, to more than 30,000 containers per year.