[EN-LAN] Asian Cargo Starts to Avoid Vancouver as CN Rail Strike Bites

CANADA's main west coast port, Vancouver, says it is suffering cargo diversion because of the current "Canadian National Railway" (CN) train drivers strike.

Back-to-work legislation is being discussed in Parliament, but it is uncertain whether it will pass or be enacted because many hope the strike will end before it is. At issue is the 3,800 miles drivers must travel before they can stop work.

The 17,000 drivers work between 15 and 17 days a month and earn C$100,000 (US$95.640) a year, according to management. The 3,800 mileage cap was established in 1919 when steam-driven coal-fired trains were slow and took much longer to travel Canada's vast distances.

Management now wants the "mileage cap" increased to 4,300 miles to improve productivity. It has been reported that shippers in Canada are diverting cargo away from Vancouver to US ports, but Mark Erdman, Port Metro Vancouver spokesman, would not say what cargo, where it was going or in what quantities, citing "terminal confidentiality".

Vancouver, which does 95 per cent of its import business with Canada (2.5 million TEU annually), is also the biggest North American port in terms of pure tonnage, combining all cargo including bulk exports, which takes in wheat, coal, potash and oil.

But Prince Rupert (200,000 TEU annually), the new port 400 miles to the north, does 60 per cent of its business with the United States, and is entirely dependent on CN to move its boxes in and out.

Pledging to carry on regardless, CN has asked customers to help line up their freight for pickup by taking steps to kerb railway wagon switching in their own private company rail yards which take up too much time of the management personnel and retired drivers who have replaced the drivers.

Shippers are reporting train delays from the nation's largest rail ahead of Canadian Pacific, or CP Rail. Some say ocean cargo diversions have also begun, with a few ships heading to US seaports that would normally go to Canadian terminals served by CN.

Source : HKSG, 03.12.09.