Intermodal Report
Vancouver: Prime Gateway with Regular Service to U.S. and Beyond
A port is only as good as its links. For a port to be a gateway to a market of 350 million consumers, you must have regularly scheduled service to the key transportation hubs in North America. The Port of Vancouver has just that, with both Canadian transcontinental railways, namely, Canadian Pacific Railway and Canadian National Railway, serving every major market in Canada and the United States.
Recently, Port Vancouver was chosen as the first port of call by three of the world’s largest container shipping lines: the China Ocean Shipping Company (COSCO), Zim Israel Navigation Limited and Norasia Line Limited. COSCO and Norasia selected Canadian Pacific Railway to serve its new service, with Zim being aligned with Canadian National Railway. With these three lines making a direct hit on Vancouver from Asia, Vancouver has become an attractive option for shippers.
We knew we could bring real value to the carriers. Our container facilities are highly efficient, with on-dock rail and high-tech equipment. During the last ten years, the terminal operators of Vancouver’s three container facilities have invested heavily in new cranes and computer systems to boost their capabilities.
Our rail partners have also contributed significantly to keep Canada’s rail transportation on track with customers’ expectations. For example, Canadian Pacific Railway recently opened its new $37 million intermodal facility in Pitt Meadows, just outside the Vancouver hub. Canadian National’s Thornton Yard, opened a few years ago, has proved to be a tremendous asset to CN’s operations.
The Port’s rail links, we knew, could provide a competitive cost factor for the carriers. It was really a matter of signing up carriers to use these excellent rail connections with a regular service. Now that it is a reality, we think other carriers will follow suit and we estimate that we will handle over a million Twenty-foot Equivalent Unit (TEUs) containers this year.
Unfortunately, following the boom in port business, Vancouver has encountered some challenges on the trucking side of its operations. A dispute over wages amongst the diverse trucking entities has ground trucking operations to a halt at Vancouver’s three container facilities for more than two weeks. At the time of writing, it expected an agreement will be reached. The Vancouver Port Authority will introduce a permitting system for trucking firms to recognize those who have reached a fair wage agreement with their employees. Additionally, the Port is looking at an appointment system to facilitate the smooth flow of truck traffic through the terminals.
With our container traffic up 44 percent to 526,841 TEUs this business quarter over last year’s, it is understandable that the system of handling the increased container volumes becomes more intense. Clearly, our focus is on immediate solutions to alleviate wait times and improve trucking efficiencies.
We have worked very hard to secure new business at Canada’s largest port. On the eve of the new millennium, we are confident that Port Vancouver and its intermodal links are ready for the challenge as a major player on the west coast of North America.