John D. Boyd | Jun 14, 2010 10:53AM EDT
Canadian National Railway and container facility operator TSI Terminal Systems inked what they called a “supply chain collaboration agreement” aimed at improving turnaround times for containers at Port Metro Vancouver and drawing more volume through that port area.
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Containerized Ocean Trade - Port Metro Vancouver BC: By the Numbers.
They said this CN-TSI pact is a companion to CN's recent supply chain gateway collaboration agreement with the port authority, designed to promote balanced accountability among all port stakeholders.
The railroad and terminal signed a memorandum of understanding, which they said will “drive strong mutual focus on system efficiencies, improved communication and close monitoring of their gateway performance.”
All of this follows a sharp recession that shriveled trade flows and the wooing of some shiploads to competing port areas. In addition, various ports, terminal companies and shippers have been lashing CN and rival Canadian Pacific Railway over rail service levels, before a federally appointed panel.
CN is Canada’s largest railroad, and also runs a large rail network in the U.S. market. It feeds containers into the U.S. heartland from the West Coast not only through Vancouver, where it shares access with CP, but also from its exclusive link to a new container terminal at Prince Rupert.
TSI is the largest container terminal operator in Canada, and directly handles about 70 percent of containerized cargo moving through two terminals it operates under long-term lease at Vancouver. TSI is a unit of GCT Global Container Terminals, which is owned by the Ontario Teachers' Pension Plan.
Claude Mongeau, CN’s president and CEO, said its accord with TSI “aims to improve supply chain performance at the port by establishing a close working relationship with TSI in support of increased efficiency and service innovation."
At GCT, President and CEO Michael Moore said “we look forward to reducing dwell time and increasing the fluidity of the Asia Pacific Gateway with this arrangement."
