Fall 2012 - Trailcon

INTERMODAL
INSIGHTS
Port of Vancouver posts
healthy mid-year results
Port Metro Vancouver (PMV) is cruising to
another strong year, handling 62.3 million
tonnes of cargo and posting growth of six
percent overall through the first half of 2012.
Container traffic set a record during
the period, increasing six percent compared
to the first half of 2011 to 1.3 million TEUs
(20-foot equivalent unit containers).
PMV and industry partners in the container
drayage sector – including the B.C.
Trucking Association – are collaborating on
an initiative designed to improve productivity
and performance through Canada’s
Pacific Gateway. The project includes the
development of benchmark service standards
and the mechanisms to define, measure,
monitor, and evaluate the performance
of each participant against the established
benchmarks. It also establishes processes to
resolve disputes between the container terminals,
container trucking community, the
Port, and supply-chain partners.
As a result of the initiative, PMV has seen
an increase in container volumes, notes
Peter Xotta, vice-president planning and
operations. “Drayage carriers and drivers
should realize consistent, reliable, and reasonable
turn times that will address longstanding
concerns about productivity and
efficiency,” says Louise Yako, president and
CEO of the B.C. Trucking Association.
CN invests in Edmonton–
Prince Rupert corridor
CN is investing heavily to accommodate
growing traffic on its Edmonton–Prince
Rupert line.
The railway recently announced a $12-
million expansion of its Locomotive Reliability
Centre (LRC) in Prince George, B.C.,
strategically located mid-way between
Edmonton and Prince Rupert. That investment
follows the construction of a major
transloading and intermodal terminal in
Prince George.
CN is also constructing five extended
sidings on its British Columbia North Line
this year as part of a multi-year capital program
to expand capacity. By year end, the
railway will have invested more than $150
million since 2004 in longer sidings along
this key corridor.
In 2011, more than half a million carloads
or intermodal units moved over the B.C.
North corridor, and CN expects that freight
traffic along the line could almost double by
2015. The dramatic growth is fuelled in large
part by the flourishing Port of Prince Rupert.
Its Fairview container terminal recorded an
increase in total volume of more than 20 percent
in 2011 over the previous year, making
Prince Rupert the fastest-growing container
port in North America.
CN reported net income for the first half
of 2012 of $1.406 billion, compared with
$1.206 billion for the comparable period in
2011. Intermodal was one of several sectors
recording double-digit gains in revenue
ton-miles. For the second quarter of 2012,
intermodal revenue increased by 16 percent,
which the company attributes to growth in
North American and Asian economies,
among other factors.
Canadian railways on track for annual intermodal record
Intermodal volume averaged 53,661 units per week in August 2012, the second-highest average for any month in history for Canadian
railroads (behind June 2012), according to the Association of American Railroads (AAR). Year-to-date Canadian intermodal volume was
up 6.9 percent (115,767 containers and trailers), on pace for a record-setting year, says AAR.
The increase occurred solely on the strength of containerized cargo shipments, as trailers loaded onto flat cars declined by 14.4
percent for August 2012 compared with the same period in 2011. Traffic in intermodal containers, by contrast, grew by 6.2 percent.
Average Weekly Canadian Rail Intermodal Traffic
(not seasonally adjusted)
54,000
50,000
46,000
42,000
38,000
34,000
2012
2009
2010
2011 (peak year)
2008
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Data are based on originations, include CN and CP (including their U.S. operations),
and reflect revisions to original reporting. Source: AAR Weekly Railroad Traffic
% Change in Total Canadian Intermodal Traffic From
Same Month Previous Year: Jan. 2006 – Aug. 2012
30%
25%
20%
15%
10%
5%
0%
-5%
-10%
-15%
-20%
-25%
August 2012 was up 5.5%
over August 2011 and up
4.7% over August 2010.
2006 2007 2008 2009 2010 2011 2012
Data are based on originations, are not seasonally adjusted, include CN and CP (including their U.S.
operations), and reflect revisions to original reporting. Source: AAR Weekly Railroad Traffic
SOURCE: Rail Time Indicators, published by the Policy and Economics Department of the Association of American Railroads. Reproduced with permission.
14 REPORT on TRANSPORTATION