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Canadian National secures contract for hauling sulfuric acid

A Canadian National train travels in winter. Image: Canadian National

Canadian National (NYSE: CNI) and NorFalco Sales, a division of Glencore Canada, have agreed to a multiyear contract to ship sulfuric acid from NorFalco’s facilities in Ontario and Quebec.

Canadian National (CN) will provide rail services to NorFalco’s production facilities in Sudbury, Ontario; Rouyn-Noranda, Quebec; and Valleyfield, Quebec. NorFalco says it is one of North America’s largest merchant marketers of sulfuric acid, marketing and distributing about 2 millions tons of the acid each year.

Through Glencore, NorFalco has access to sulfuric acid production from four major North American production facilities, as well as access to the global sulfuric acid supply and trading network, CN said.

“This agreement furthers our strategic partnership with NorFalco reaching new facilities throughout eastern Canada,” said JJ Ruest, president and CEO of CN.

According to NorFalco, sulfuric acid is used in the manufacture of products such as fertilizers, paints and pigments, explosives, pulp and paper, plastics, detergents, textiles, batteries, and specialty chemicals. Sulfuric acid is also used for mineral ore processing, metal refining, petrochemical processing and water treatment.

Ruest said NorFalco consistently meets the standards for handling regulated products safely, and Kunal Sinha, CEO of NorFalco, praised the ongoing partnership with CN.

“This agreement provides NorFalco, and our customers, with a reliable rail transportation infrastructure, underpinned with a shared commitment to safety in handling and moving our product throughout our diversified customer base,” Sinha said. “We anticipate this agreement will further our strategic growth supported with manageable transportation costs.”

In a separate release, CN said on Monday that it would release its fourth-quarter 2019 and year-end results on Jan. 28.

Joanna Marsh

Joanna is a Washington, DC-based writer covering the freight railroad industry. She has worked for Argus Media as a contributing reporter for Argus Rail Business and as a market reporter for Argus Coal Daily.