GREY:CPMNF - Post by User
Comment by
Greenandgold.on Nov 06, 2011 6:21am
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Post# 19213277
RE: NO race with CN is invested in ....
RE: NO race with CN is invested in ....Even the executives of the CN railway agree with me that capacity on the QNS&L could be maxed-out soon. That's why they are considering building a railway to compete with the QNS&L. It's obvious there's a race for the remaining rail capacity. The winners ship iron ore in 2015. The losers wait a decade for CN to build a railway.
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I emailed an exec at one of the principle players in the Lab Trough recently (not ADV). He believed rail access was mostly a financial issue for the iron ore juniors. To sign a rail deal with QNS&L a company needs to come up with a substantial deposit (Consolidated Thompson gave the QNS&L $50 million upfront, the number is probably $75 million now). No junior can risk that kind of deposit without a definitive feasibility study, advanced environmental permitting, and project financing in place.