MONTREAL - Canada’s largest rail carrier said Friday it would meet with several mining companies and the Casse de depot to study a new $5 billion railway linking Quebec and Labrador.
"CN will work closely with mining companies and and the Caisse to determine the best design and timing of developing rail infrastructure to exploit the potential production of iron ore from the Labrador Trough in Northern Quebec and Labrador,” said the CN Chief Executive Officer Claude Mongeau.
Rod Cooper, President and CEO of Labrador Iron Mines Holdings, said in a statement that the separate handling terminal at the port of Sept-Iles would complement a planned new pier.
Cameron Doerksen of National Bank Financial said the project would probably not be operational before 2017-2018 but it could be worth significant revenue to CN. The railway could generate $1.5 billion to $2 billion in annual revenues, in addition to its current total of nearly $ 10 billion, he said.
CN will soon apply to the Canadian Environmental Assessment Agency to obtain permits for the project. The feasibility study will be undertaken and, as necessary consultations.
-With files from The Canadian Press
