Teck Resources (TECK -3.2%) accuses Westshore Terminals (OTCPK:WTSHF), the shipper it uses to export its coal, of charging too much and contaminating some freight
Teck CEO Don Lindsay says the export facility had contaminated “dozens” of shipments, forcing the company to build its own terminal quickly, before a permit lapsed and its contract with Westshore expired, which drove up capital costs.
Because Westshore had a 10-year contract with Teck, employees were able to ship the company’s coal “when they liked,” which often was not when prices were high, costing Teck $200M in EBITDA during one quarter in 2018, when 1M tons of sales were lost at a time coal margins exceeded $200/ton, according to Lindsay.
