The Meadow Lake Tribal Council is calling on CN Rail to provide more rail cars for the local mill. (File photo/Paper Excellence)

By meadowlakeNOW Staff

Joint request

MLTC joins call for more rail cars

Mar 7, 2022 | 11:00 AM

The Meadow Lake Tribal Council (MLTC) joined Paper Excellence on Monday in calling on CN to provide more rail cars for Meadow Lake Mechanical Pulp Inc.

Last month, Paper Excellence, the pulp mill’s parent manufacturer, had announced an indefinite production slowdown because of the repeated lack of railway service and the exhaustion of local storage facilities.

Because Meadow Lake Mechanical is dependent on CN, product has not been adequately transported to ports for months.

In a statement, MLTC Chief Richard Ben cited the long term business partnership between Mistik Management Ltd. (Mistik) and Meadow Lake Mechanical Pulp. Mistik holds the provincial Forest Management Agreement for the area and is an equal partnership between the mill and NorSask Forest Products, which is owned by the MLTC.

“Our business [partnership] provides sustained employment and financial benefits resulting in increased opportunity, well-being, and overall prosperity for our First Nation membership,” he said. “We encourage CN to immediately provide better rail service for Meadow Lake Mechanical Pulp Mill.”

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Currently, CN is providing less than 40 per cent of requested rail cars and now the mill has reportedly had to resort to participating in a CN auction process that drives up prices for the few cars that are available. It has not operated at full capacity since December.

CN has previously stated that supply chain issues and extreme weather conditions are responsible for the short in recent months.

Ben also pointed to the impact this has on the broader community of First Nations.

“Any negative business impact to our long-term partner can translate into negative impacts on employment opportunities affecting our communities and overall business sustainability,” he said.

Meadow Lake Mechanical Pulp employs 190 people and around 700 local jobs are dependent on the local supply chain, many of whom are in Indigenous communities. In the same release, Paper Excellence VP of Environment, Health and Safety, Graham Kissack, stressed their local relationships.

“Our partnerships with Indigenous businesses in and around the Meadow Lake community has been a success story we are proud of. However, the profitability of the mill and its forestry providers hinges on running at full capacity and getting our product to market.”

Paper Excellence is headquartered in British Columbia, with a workforce of more than 2,400 spread across seven mills in Canada.

Further issues could be on the horizon for CP Rail as well, with a potential strike looming.

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cjnbnews@pattisonmedia.com

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