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Higher prices for<br />
natural gas and other<br />
energy sources likely<br />
will make coal the<br />
energy of choice for<br />
U.S. electric power generators—and<br />
railroads<br />
have recaptured an<br />
increasing percentage<br />
of coal shipments over<br />
the years. China and<br />
other developing countries<br />
are also importing<br />
more grain, and moving<br />
grain to North<br />
American Pacific ports<br />
is another railroad<br />
forte, Larkin says.<br />
As if on cue, CN Rail<br />
flexed some muscle in a<br />
series of expansion moves<br />
on both sides of the border.<br />
CN and BNSF announced an<br />
agreement on improving rail<br />
network fluidity and<br />
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ON TRACK: Is rail finally<br />
getting its act together?<br />
infrastructure capacity<br />
principally in Vancouver-<br />
Chicago markets. The agreement<br />
includes track and rail<br />
infrastructure exchanges<br />
between the railroads, and<br />
CN’s grant of trackage,<br />
haulage, and other access<br />
rights to BNSF. CN also<br />
purchased the Alberta shortline<br />
railways owned by<br />
RailAmerica, <strong>In</strong>c. CN says<br />
Dispatches<br />
these feeder lines to<br />
the oil sands strengthen<br />
the railway’s<br />
merchandise and bulk<br />
commodity businesses<br />
at a time of major<br />
energy development in<br />
northern Alberta.<br />
But it is at the<br />
coastal ports where<br />
the railways’ renaissance<br />
is being mounted.<br />
Container traffic at<br />
the Port of Vancouver<br />
reached a new record<br />
of 1.77 million TEUs<br />
(twenty foot equivalent<br />
units) in 2005.<br />
However, congestion,<br />
outdated infrastructure and<br />
a series of labor disruptions<br />
in recent years have impeded<br />
VanPort from keeping pace<br />
with other Pacific ports in<br />
the U.S.<br />
MARCH 2006 17