11 January 2005

CN strike could increase backlog

The following article is excerpted from the 10 January 2005 edition of “Canadian Transportation & Logistics”.

The port of Vancouver's largest container terminal operator, TSI Terminal Systems Inc., says cargo backlogs will worsen if Canadian National Railway Co. goes on strike. CN is currently in contract talks with two of its labour unions, which represent some 4,550 workers.

Morley Strachan, vice-president of business development and strategic planning at TSI Terminal Systems Inc., and operator of two of the port's three container terminals, warns of a significant impact if rail services were affected.

Strachan told the Financial Post there are already severe pressures on the railways for freight volumes and any further disruption is going to compound the problem.

The United Transportation Union, which represents 2,800 brakemen and conductors, and Teamsters Canada Rail Conference, which represents 1,750 engineers, are in separate talks with … CN.

A strike by the UTU could start as early as Jan. 20, with the Teamsters walking out the following week, on Jan. 28.

CN spokesman Mark Hallman said the company is optimistic agreements can be reached.

Concern about possible labour disruption comes amid congestion and delays at Vancouver's port caused by surging volumes of trade from China….

As a result Stephen Poloz, chief economist at Export Development Canada, recently cut his growth forecast for 2005 to 2.9% from 3.2% because of the impact of freight delays around the port….