Canadian Railroads Sign Cooperative Agreements
The Candian National Railway and Canadian Pacific Railway have signed several agreements to share lines and create new interchange protocols within in the US and Canada to to expedite shipments, generate more system capacity, improve equipment cycles and help to control costs.
CN and CPR Target Operations in Canada
The Canadian Press (Nov 16, 2004) reports that the Canadian
National Railway and the Canadian Pacific Railway have signed three
agreements to improve the efficiency of both operations. The agreements
target network operations in B.C., Alberta, and Ontario. CEO's from both
companies spoke positively about the agreements. Hunter Harrison, CN's chief
executive, said with the arrangements, "CN and CPR are unlocking
efficient ways of improving service, increasing track capacity and
maximizing utilization of railway infrastructure. These agreements are clear wins for our respective customers and
shareholders."
CEO Robert Ritchie of Calgary-based CPR said that along with recently
announced rail agreements for the congested Port of Vancouver, "these new
initiatives again demonstrate that the highly competitive railway industry
can work in a spirit of co-operation to respond to shipper needs."
CN, NS, CPR Improve Transit Times in Eastern Canada, Eastern US
These agreements closely follow agreements between Canadian National, Norfolk Southern and Canadian Pacific to share rail routes and improve service between eastern Canada and the eastern US. According to the Roanoke Times (Nov 10, 2004) the agreement will give CN and NS a direct north-south route utilizing CPR's lines south of Montreal. This route is estimated to save as much as two days transit times for over 20,000 shipments annually and will cut 300 miles of of the existing routes used by CN and NS.
CN's customers in Quebec and the Maritimes will have quicker
access to markets in the Eastern United States. The railroads can also
better use their networks and locomotive and car fleets, CN president Hunter
Harrison said in a prepared statement. Spokesman Mark Hallman said the
railroads want to improve service for shippers. Generally speaking, freight
can move from Canada to Georgia 48 hours faster under the new agreement, and
freight from Canada to New Jersey, eastern New York and Pennsylvania will be
between eight to 24 hours faster.
Canadian Pacific President Rob Ritchie billed the agreement as an important
initiative that removes cost for the rail industry by shipping freight on
the most efficient routes without regard to ownership.
The agreement is scheduled to begin Nov. 19.
CN, UP Set Routing Protocol Easing Congestion in Chicago
In a third agreement, released by CN on November 30th, CN and
Union Pacific Railroad announced that they have reached a
routing protocol agreement to streamline their exchange of rail traffic at
major gateways. The agreement will help to reduce rail congestion at
Chicago.
Under the protocol, CN and UP have established a structured plan to direct
rail traffic flows through the most efficient interchange locations, a
change that will improve transit times and asset utilization for the
customers of CN and UP. The new routing protocol will be implemented over a
three-month period.
The major interchange points for traffic moving between CN and UP are
Superior, Wis., Chicago, Salem, Ill., Memphis, Baton Rouge, La., and, via
Burlington Northern Santa Fe, Vancouver, B.C.
The routing protocol will result in a number of changes in traffic patterns:
- Rail traffic moving between Western Canada and Texas will now be consolidated and interchanged at Superior, avoiding the Chicago terminal and reducing handlings en route;
- Wisconsin traffic between Texas and Arkansas will move in a new run-through service to Salem in southern Illinois, rather than being interchanged at Chicago
- Traffic moving between eastern Canada and the south-central United States will be interchanged at Memphis, avoiding congestion in Chicago.