This month a new agreement between Canadian National and Canadian Pacific Railway is expected to begin that will bring improvements at lower costs to their operations in British Columbia. The plan calls for running direct-to-destination trains that bypass yards and eliminating railway-to-railway handoffs. It will also extend the railways' existing directional running zone in the Fraser Canyon west to the Gateway ports and terminals.
CPR will handle all trains of both railways from Boston Bar, 60 kilometers north of Hope, B.C., and 200 kilometers from Vancouver, to Vancouver's South Shore using CPR train crews. CPR will also improve the coordination of train movements and will switch all traffic into and out of terminals on Burrard Inlet South Shore.
CN will handle all trains of both railways from Boston Bar to Burrard Inlet North Shore in Vancouver using CN crews. CN will also improve the coordination of traffic switched into and out of terminals on the North Shore.
In addition, CPR will handle coal trains of both railways from Boston Bar to the Roberts Bank coal port, helping improve efficiency for coal terminal operator Westshore Terminals.
The two railways have a long-established directional running zone extending west of Ashcroft to Mission, B.C., in the Fraser Canyon. All westbound trains of both railways operate over the CN line, and all eastbound trains of both railways operate over the CPR line.
Fred Green, CPR president and COO, says: "By enhancing service as the Pacific Gateway ports and terminals expand, we are sending a powerful message along the supply chain that coordination and cooperation are critical levers for growth. We hope these initiatives will inspire others to work together for a stronger Pacific Gateway."
Ed Harris, CN's executive vice president for operations, says: "This is a smart approach to managing rail capacity at a time of substantial growth in Canada's trade volumes with Pacific Rim countries. It will enhance the fluidity and capacity of both railroads in Vancouver and deliver better service to our port and terminal partners, while ensuring healthy rail competition between CN and CPR is maintained at the Port of Vancouver."
Canada predicts container volumes at British Columbia seaports to grow to between 5 million and 7 million TEUs by 2020, from 2 million this year.
Canadian Pacific Railway's 14,000-mile rail network serves the principal centers of Canada, from Montreal to Vancouver, and the U.S. Northeast and Midwest regions. Canadian National Railway Company spans Canada and mid-America, to the Gulf of Mexico.
In separate developments, CN says it has purchased the Alberta short-line railways owned by RailAmerica Inc. of Boca Raton, Fla. CN is buying the Mackenzie Northern Railway and the Lakeland & Waterways Railway, both located north of Edmonton, following RailAmerica's decision to divest its Alberta short lines. Also included in the transaction is the Central Western Railway, a 21-mile railway in east-central Alberta used largely for training purposes that also carries a small amount of agricultural traffic.
Also, CN has agreed to haul CSX Transportation (CSXT) traffic to and from Sarnia, Ont., and CSXT connections in Buffalo, N.Y., and Toledo, Ohio.
Visit www.cpr.ca, www.cn.ca and www.csx.com.