Canadian Pacific entered into an agreement with Canadian Tire Corporation Limited, which extends to early 2017 and awards the railway with the vast majority of Canadian Tire’s domestic container traffic.
The Surface Transportation Board selected new appointees to serve on the Railroad-Shipper Transportation Advisory Council. RSTAC consists of 15 members appointed by the board’s chairman. It provides a forum for the discussion of matters of concern to rail shippers and railroads.
According to the Railway Association of Canada, Canada’s rail sector has bounced back from the 2009 global economic downturn posting solid volume growth. The industry has also continued to invest significantly in increased capacity and efficiencies. The findings are outlined in Rail Trends 2011, an annual anthology of statistics about rail sector performance published by the Railway Association of Canada.
After three years of development, ProTran1 has been awarded a major contract from IMTRAM LTD in Australia to supply several wireless fail-safe bi-directional Portable Automatic Track Warning Systems, which will be used by several Australian railways all over the country for work zone protection.
CN received Toyota Canada’s Carrier of the Year Award for 2011.
Viterra Inc. signed new service improvement agreements with both Canadian National and Canadian Pacific.
Under the CN agreement, Viterra and CN will work together to review supply chain key performance indicators, cooperate on planning and forecasting and address supply chain issues in a timely manner. The agreement is based on the belief that the actions of all supply chain participants affect the performance of the entire chain.
Canadian Pacific has improved service for its Canadian grain customers this crop year by reducing scheduling variability and increasing access to rail car supply. Crop year-to-date, empty order fulfillment, a metric that highlights rail car availability, has increased by 19 percent or 11,000 units versus a year ago.
CalAmp Corp., provider of wireless products, services and solutions, was awarded a $4.7 million extension of its development contract to help design and supply initial radios for the North American interoperable Positive Train Control system.
"Railway safety is a national imperative, with a federal mandate calling for implementation of PTC on the nation’s rails. This law requires railroads to deploy a new dedicated nationwide wireless communications infrastructure to enable the PTC Safety Overlay system," said Michael Burdiek, CalAmp president and CEO.
The contract add-on increases the quantity of pre-production radios to be delivered by CalAmp for use in field testing and early deployments by several North American Class 1 railroads and brings the total value of the contract to approximately $19 million. CalAmp expects to complete fulfillment of this follow-on order during the first half of calendar 2012.
The Illinois Department of Transportation received the "go ahead" from U.S. Transportation Secretary Ray LaHood to start spending $126 million for Chicago’s Englewood Flyover project, after an agreement was reached between NS, Amtrak and IDOT.
The project, which will get under way late summer, will eliminate one of the nation’s largest rail bottlenecks. The Illinois Department of Transportation contributed $6.6 million to the $133 million project.
The Englewood Flyover is a grade separation project south of Chicago Union Station that eliminates one of the most delay-prone intersections in the entire Amtrak system. It separates Rock Island District Metra commuter trains from Amtrak passenger trains traveling on the Norfolk Southern corridor.
"Untying rail congestion in Chicago is critical to developing a Midwest passenger rail network that will connect the 40 largest markets in the Midwest," said Secretary LaHood. "Building the Englewood Flyover will put Americans back to work this summer and create new orders in our domestic supply chain."
The Englewood Flyover project is part of the CREATE Program, a partnership between the State of Illinois, the City of Chicago, freight railroads, Metra and Amtrak, to remove and reduce train congestion throughout Chicagoland and the Midwest region.
"Not only will Illinois see the benefit of new construction jobs and some desperately needed congestion relief, this is a great opportunity for Illinois suppliers to bid on new orders," said Federal Railroad Administrator Joseph C. Szabo. "Illinois has more railway suppliers than any other state in the country and does more than $4.5 billion in sales each year."
Canadian National has announced a series of capacity improvements to accommodate growing container volumes at its Brampton Intermodal Terminal and to ensure a high level of service for intermodal customers across its system.
BIT, located in the prime logistics area of Greater Toronto, is Canada’s largest rail intermodal terminal and a key component in CN’s distribution network, almost 60 percent of the railway’s system-wide intermodal business touches the terminal. CN’s rail intermodal traffic consists primarily of containerized cargos moving in cooperation with other transportation modes.
Claude Mongeau, president and chief executive officer of CN, said, "Intermodal is one of CN’s fastest-growing business segments. We are investing in new track, equipment and other infrastructure improvements at BIT to take our intermodal service offering to the next level in efficiently distributing growing overseas container traffic reaching our network over Canadian ports as well as rising domestic intermodal shipments across Canada. These investments will increase supply chain efficiencies for our customers and help them grow their businesses.
CN’s BIT improvements include:
– The installation of new track and extension of existing track to
increase rail capacity by close to 15 per cent;
– Creation of approximately 25 percent more ground space for
international containers by staging CN containers offsite;
– Purchasing five new cranes in 2011, after the acquisition of five new
ones last fall and
– Increasing the labor force by about 10 percent in 2011.
BIT’s 2011 intermodal volumes through the end of April increased by 12 percent over figures for the comparable period of 2010.
Mongeau said, "CN’s capacity improvements at BIT reflect our strategic agenda of operational and service excellence. By anticipating our customers’ transportation needs, our innovation and supply chain collaboration focus can help them expand profitably and compete more effectively."
Axion International, producer of railroad ties made from 100 percent recycled plastic, has commenced its first test order of Axion’s Recycled Structural Composite with Ferromex, the largest railway line in Mexico.
Ferromex’s test order will be installed in various coastal regions in Mexico to provide an assessment of Axion’s capabilities in the harsh weather and salt-air environments. The salt in particular can lead to degradation of traditional building materials, at a much faster rate than the dry, salt-free climates further inland.
"Axion is thrilled to be working with the largest railway line in Mexico," said Steve Silverman, Axion’s president and CEO. "This represents yet another international validator for Axion, on top of Morocco, Canada and most recently, Australia. Ferromex is a very significant potential new client and we look forward to exceeding their expectations."
Ferromex has more than 8,000 kilometers (4,971 miles) of main tracks. This extensive network represents the largest coverage in Mexico’s National Railway System. It connects the main cities in the country as well as five points on the border with the United States, four sea ports on the Pacific Ocean and two more on the Gulf of Mexico.
"What caught our attention about Axion’s RSC is not only the fact that it is environmentally friendly, but that it might have the potential to become more economically efficient on a long-term basis, due to certain reductions in maintenance costs," said Juan Manuel Soler, Ferromex Maintenance of Operative Resources director. "We welcome Axion to supply their test product so we can properly evaluate it, following a suitable protocol, for Ferromex’s long-term consideration going forward."
CN has acquired more than 1,000 new domestic containers to better serve manufacturers and distributors of grocery and consumer goods in domestic markets across Canada and grow the railway’s participation in the segment.
Roughly 80 percent of the new containers are heated, ensuring year-round quality service for temperature-sensitive goods; the balance of the boxes are standard dry containers.
Jean-Jacques Ruest, executive vice president and chief marketing officer of CN, said: "CN’s intermodal service is more cost effective than truck while offering customers truck-like transit times and a lower carbon footprint. CN has established a growing business transporting temperature-sensitive goods in long-haul markets across Canada. Our continued investment in infrastructure will benefit the reliability of the supply chains of our grocery, consumer goods and manufacturing customers. Together, we want to grow with them."
Approximately 540 containers will be used to renew CN’s domestic container fleet, while another 520 new containers will increase CN’s overall domestic container fleet to almost 6,000 units.
Craig McLaughlin, vice-president, supply chain, for Kraft Canada, said:"At Kraft Canada, it is important that we work with suppliers capable of investing in their infrastructure in support of enhancing service and enabling our growth. CN’s continuing effort to listen to us as a valued customer and taking action is a key component of the foundation for our strong partnership."
Jens Grellmann, manager, transportation services for Hopewell Distribution Services Inc., which handles warehousing and distribution for Campbell Company of Canada, said: "CN’s acquisition of a significant number of additional containers, specifically heated equipment, will help our supply chain. The new containers will improve equipment supply, allow us to achieve many of our cost-saving initiatives and generate growth opportunities for both companies."
CN’s domestic intermodal business is focused on delivering truck-competitive, cost-effective service. CN Intermodal offers shippers an approximate 24-hour rail advantage from central Canada to Western Canada. At the same time, CN Intermodal is competitive with single-truck-driver service between central Canada and Winnipeg, Calgary, Edmonton and Vancouver markets.
Canadian National has serious concerns about the final report of the Rail Freight Service Review panel that was issued and is disappointed with the Government’s response.
While CN is pleased that, in releasing the report, the Government recognized the importance of a supply chain approach and noted its preference for commercial solutions, CN is concerned that the Government’s decision to consider tabling legislation could stifle supply chain innovation and Canada’s competitiveness in the global marketplace.
Claude Mongeau, president and chief executive officer, said, "CN disagrees with the focus and tenor of the panel’s recommendations. Like the dissenting panel member, we are concerned that the panel’s recommendations are drifting backward toward more regulation instead of encouraging the current momentum for positive change."
Mongeau noted that the panel failed to act on the hard facts that were before it, which show that rail service in Canada is actually quite good overall.
CN says the government failed to recognize the significant positive change that has been taking place over the past two years to address key service issues, including improved customer engagement, initiatives to improve the first-mile/last-mile of rail traffic movements and enhanced supply chain efficiency and transparency.
CN says that contrary to its mandate from the government to examine service provided by the "rail-based logistics chain," the panel focused solely on the railways – the only federally regulated segment of the supply chain – and missed the fact that all participants in the supply chain are accountable for transportation system performance, not just railways.
Mongeau said, "CN remains fully committed to its strategic agenda of operational and service excellence. Deeper customer engagement is the right way to do business and the best way to help our customers across Canada win in their own end markets.
"In the end, supply chain partners need to embrace change to drive better service and efficiency gains. Burdensome regulation targeting railways alone is not the solution. Greater supply chain collaboration and more service innovation are what is needed to foster Canada’s prosperity."
Canadian Pacific Railway and TSI Terminal Systems Inc., a subsidiary of GCT Global Container Terminals Inc., have signed a Service Level Agreement that builds on their productivity and performance agreement announced last June.
The agreement outlines key performance indicators relating to the flow of containers through the Vancouver Gateway. Meeting the performance indicators will improve productivity, enhance reliability and increase efficiency. The agreement period is three years.
"This Service Level Agreement continues to move us along the path of a high performance, efficient and reliable supply chain to ensure that Vancouver is a preferred intermodal gateway." said Michael E. Moore, CEO of Global Container Terminals. "Our partnership with CP and our commitment to collaborate on delivering high-level service to our mutual customers will ensure success."
"Canadian Pacific’s customer focused partnerships, upgraded infrastructure, innovative technology and industry leading safety practices give us the means to grow our franchise over the long term," said Fred Green, CEO of Canadian Pacific. "As import and export volumes grow through the Pacific Gateway, CP and TSI are mutually committed to service improvements in the world-class Vancouver gateway."
Ed Harris, executive vice president, operations at Canadian Pacific Railway has decided to retire, effective April 1, 2011.
Mike Franczak, currently senior vice president, operations, will succeed Harris and be appointed executive vice president, operations. Franczak will assume responsibility for operations activity across Canadian Pacific Railway’s 14,800 mile North American network.
"Ed’s leadership has paved the way for refinements of yard processes which improve service reliability for the benefit of CP’s customers and supply chain partners," said Green.
Harris joined CPR in 2010 and leveraged more than 30 years of railroading experience to lead CPR’s operations team through various enhancements and to develop a successor.
Harris will act as an advisor to Franczak through 2011.
Canadian Pacific Railway and the Montreal Port Authority have signed a collaborative agreement on performance and productivity that formalizes the railroad’s and the port’s ongoing supply chain collaboration.
"This collaboration agreement continues to strengthen our long partnership with the Port of Montreal, setting the stage for a cross-supply chain collaboration that improves performance and service of the Continental Gateway," said CP Executive Vice-President and Chief Marketing Officer Jane O’Hagan. "Our collaboration will create the most efficient and reliable routing for freight traffic moving between Europe and the American Midwest."
"This new service agreement reflects the commitment of the port and the Canadian Pacific to improve efficiency and productivity of our management of containers traffic and strengthen the Port of Montreal’s competitiveness," said Sylvie Vachon, president and chief executive officer of the MPA.
Canadian Pacific Railway and Port Metro Vancouver have reached an agreement to improve productivity and performance through Canada’s Pacific Gateway. The Port and CPR believe that greater collaboration and accountability among supply chain partners is the key to more efficient and reliable trade through the Gateway.
This collaboration agreement sets the framework for the Port, CPR and port stakeholders to develop mechanisms to define, measure, monitor and evaluate the performance of each participant at the port against established benchmarks. It also establishes processes to proactively communicate on service-related matters and resolve disputes between CPR, the Port and port supply chain participants on a commercial basis.
"I am pleased that we were able to work collaboratively with CP on this important agreement," said Robin Silvester, Port Metro Vancouver’s CEO. "With an emphasis on reciprocal accountability, our agreement will further improve competitiveness and optimize the performance of the Vancouver Gateway."
"This collaboration agreement strengthens our partnership with Port Metro Vancouver in our biggest Gateway, setting the stage for a cross-supply chain collaboration that improves performance and service of the Pacific Gateway," said CPR Executive Vice-President Jane O’Hagan. "CP strongly believes in the growth opportunities that underpin the Vancouver Gateway."
Viterra Inc., has signed a Memoranda of Understanding with Canadian National and Canadian Pacific Railway, aimed at improving logistical efficiencies in Western Canada’s grain handling system. The MOUs focus on supplychain optimization and performance, and establishing further accountability.
"This is an important step towards definitive operating agreements that will benefit all stakeholders in Canada’s grain industry, from farmers to destination customers. Viterra is dedicated to driving excellence in Canada’s transportation supply chain and has made a series of infrastructure investments over the last several years to promote the efficient movement of grains and oilseeds. We are pleased that CN and CP share our commitment, and through joint collaboration, are taking measures to improve rail service delivery," said Bob Miller, Viterra’s senior vice president, North American Grain.
The respective parties seek to establish specific metrics to measure performance in areas such as order placement and handling, country execution, transit and port performance. Viterra loads more than 160,000 railcars and 300 ships in Canada annually.
Claude Mongeau, president and chief executive officer of Canadian National called for a new business model that embraces innovation, increased productivity and greater stakeholder collaboration.
Mongeau, speaking to the Winnipeg Chamber of Commerce, said: "We need to articulate a clear vision of how we’re going to foster economic growth and compete more effectively in global markets. To that end, we require business and government to embrace change and foster innovation. At CN, we intend to be part of the solution."
Mongeau cited CN’s Scheduled Grain Plan introduced last year as an example of innovation that is driving significant gains for all stakeholders in the grain industry.
"CN’s success under this plan in delivering specified hopper cars to specified elevators on specified days each week has translated into more predictable service to the grain industry. Grain companies can now better schedule their staff at country elevators and waterfront export terminals. It’s all about selling the right grain at the right time to the right buyer and ultimately creating more wealth for Canadian farmers."
The results – CN achieved a fulfillment rate of more than 85 per cent for spotting of covered hoppers on the day the railway committed their placement during 2010.
Mongeau said CN’s new Scheduled Grain Plan is "a prototype of what we have to do more of in the key supply chains we serve to support increased competitiveness. This business model will require greater collaboration from all players and a renewed willingness to innovate in order to stake our ground in world markets."
Mongeau said achieving greater grain supply chain efficiencies means the system needs to evolve from one that’s too often characterized by adversarial relationships to one based on closer collaboration and a clear end-to-end supply chain perspective. This is best achieved, he said, in a context of mutual trust and in a commercial framework.
Mongeau concluded: "To succeed, we have to take this journey together. Embracing change and innovating together is the key to making the grain industry more competitive in global markets."
Chuck Strahl, Minister of Transport, Infrastructure and Communities, was part of a roundtable discussion in Ottawa, Ontario, Canada on Rail 2030, the Railway Association of Canada’s project to develop a common industry vision for the future of rail.
In his lunchtime address to public and private sector partners in the rail industry, Minister Strahl recognized the continuing importance of rail to Canada’s economic future. Rail is, he said, a key part of the North American supply chain and global trading network that stretches to and from Europe, Africa, Asia and South America. Minister Strahl also underlined the value of partnerships and collaboration in fostering transportation research for an increasingly knowledge-driven sector.
"Our vision is of a future integrated transportation system that is sustainable, competitive, safe and secure, serving the needs of shippers, passengers and all Canadians," said Minister Strahl. "Our government will be working in partnership with you, your colleagues in other modes and your stakeholders to remove barriers, find solutions and encourage cooperation."
Minister Strahl highlighted the collaborative work being done by industry, government and academic researchers through Transport Canada’s Railway Research Advisory Board. The board is actively examining new approaches and seeking solutions to address transportation challenges such as infrastructure renewal, congestion, rising energy costs, environmental concerns and mobility.
"When we talk about preparing for Canada’s future prosperity, we know innovation must play a role," said Minister Strahl. "Investing in the right technologies, research and business strategies will provide a competitive edge by improving efficiency, reliability and sustainability.”
