The two said Wednesday that the framework of its new memorandum of understanding lines up with Coalspur’s plans to begin production from the operation in 2015, which will begin at 2.5 million tonnes per annum and rise to 11.2Mtpa by 2019.

CN will transport the Vista output from the complex near Hinton to west coast ports including the Ridley Terminals at British Columbia’s Prince Rupert port. Coalspur’s recently signed throughput agreement with the port outlines export capacities of up to 8.5Mtpa.

The companies confirmed that they will work in tandem to design and build a rail siding at the Vista project to accommodate loadings of 175-car unit trains at a full 286,000-pound-per-car capacity.

CN and Coalspur expect a definitive agreement will be signed for the project next year, once the feasibility study of the Vista project has been completed.

“[We] will work closely with Coalspur to build an efficient and effective logistics process for its export coal,” CN executive vice president and chief marketing officer Jean-Jacques Ruest said.

“CN has developed a comprehensive, end-to-end supply chain strategy to manage coal flows from mines to west coast terminals. This approach, coupled with strong customer collaboration, will help Coalspur maximize sales opportunities in global markets."

Coalspur managing director and chief executive officer Gene Wusaty said rail will be a critical link to connect the output of Vista with international markets.

“[A]n agreement with North America's most efficient rail carrier will help ensure a reliable and effective supply chain," he said.

Vista is the flagship project of Coalspur Mines and the company says the complex has the potential to be Canada’s largest export thermal coal mine.