Public Relations and
Advertising Department
Windsor Station Montreal Que. H3C
3E4
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Volume 11
Number 7
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May 27,
1981
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Growing Export Market Spurs
Rail Car Purchase by Sulphur Producers
By Ralph Wilson
Precious
Yellow Cargo: Sultran's new rotary-dump gondolas get their
first real dumping test following their two-day journey from Calgary
to Port Moody, B.C. As the photo sequence shows, the cars are pushed one at a time
into the huge dumper where they are tipped on their side until their precious
yellow cargo is unloaded. Port Moody's Pacific Coast terminals are located adjacent
to Burrard Inlet.
CALGARY - After experiencing more than
a decade of uncertain price and market conditions, Canada's sulphur industry is in
the midst of a buoyant international market.
To meet that demand and more effectively serve a growing list of international
customers, CP Rail and Sultran Ltd., Canada's largest sulphur logistics company,
recently set the stage for an improved sulphur transportation system.
Sultran, owned by 25 sulphur producers, recently purchased $35 million worth of
rotary-dump "gondola" rail cars - 320 of which have been
earmarked for use on CP Rail.
"The advent of the new car signals a common commitment by the sulphur industry
and the carriers to improve the export delivery system. The
co-operative effort between Sultran and the carriers has made this
possible", Mr. Doyle said.
RAIL MOVEMENTS UP
Export movements by CP Rail have increased from about half a million tons in 1969
to 2.4 million tons this year. Projected tonnage is likely to reach 2.6 million
tons a year by 1985. That level is expected to continue through 1990.
When Sultran Ltd. was formed in 1976, offshore export volumes were 2.6 million tons.
The volume in 1981 is expected to be about 6.6 million tons.
Canadian-produced sulphur - 98 percent of which is produced in Western
Canada - is used primarily in the manufacture of fertilizers in the United States,
South Africa, Brazil, Italy, and Australia, to name a few.
The agreement between CP Rail and Sultran will assist in widening world markets,
according to Dale Turzak, regional marketing director, freight sales, Vancouver.
"The acquisition by Sultran of their own rotary gondolas for sulphur service
represents a substantial capital investment and, in my opinion, clearly demonstrates
industry confidence in the role Canadian sulphur will continue to play in world
export markets", Mr. Turzak said.
The first distinctive black-and-orange cars, purchased from national
Steel Car Co., of Hamilton, Ontario, began arriving in Alberta in early April. And,
on 28 Apr 1981, the first all-sulphur,
producer-owned train rolled out of Calgary on its way to Port Moody,
B.C.
HIGH GEAR
Initially, the Sultran unit trains on CP Rail will make a minimum of 42 trips
annually, with each train carrying about 360,000 tons, for a total capacity of 1.1
million tons a year.
Once the system rolls into high gear, the number of trips is expected to average
about 50 annually with each train carrying up to 450,000 tons.
During the next 15 years, approximately 20 million tons will be shipped to the West
Coast.
Sultran's President, Kevin B. Doyle, sees his company's investment in
producer-owned cars as a major step for the industry.
"The rail cars will have a significant impact on Sultran and its
customers", he said from his Calgary office. "Their use will improve the
reliability and capacity of the delivery system for export sulphur".
"CP Rail also shares this confidence and all expansion plans on our westbound
capacity will recognize the important role played by sulphur", he added.
In terms of yearly tonnage for export moved by CP Rail, sulphur is surpassed only
by grain and coal.
"This latest step by Sultran in becoming a car owner will serve to cement what
we consider has become a very close working relationship", Mr. Turzak
said.
This CP Rail News article is copyright 1981 by
Canadian Pacific Railway and is reprinted here with their permission. All
photographs, logos, and trademarks are the property of the Canadian
Pacific Railway Company.
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