CN sees big future in Prince Rupert terminal

The new container terminal to be built in Prince Rupert, B.C., will boost the port and the only railway that serves it, Canadian National Railway (TSX:CNR)CEO Hunter Harrison said Thursday.

"There's a huge opportunity in Prince Rupert," he told analysts at a transportation conference.

The port has many advantages it's North America's closest port to Asia, and the shortest sea/rail route to the U.S. Midwest but traditional cargo volumes "have declined to unprecedented lows over the past five years," the Port Authority said on its website.

It's trying to regain lost ground by developing cruise ship facilities and a container terminal.

The planned terminal is part of the deal that CN signed with the BC government when it bought BC Rail.

• FROM NOV. 25, 2003: CN acquiring BC Rail for $1 billion

That deal is still waiting for a ruling from federal competition regulators.

Hunter said the port would give CN an advantage over other railways, and will increase the company's container business.

CN plans to spend $15 million to improve its route to Prince Rupert so it can carry two stacked containers on each car.

The container terminal could be open next year, although work hasn't started yet.

CNR stock closed up 15 cents at $56.50 on the TSX.