More Friday rail news in brief:
CN to offer Halifax-Moncton intermodal service
Canadian National has announced a new short-haul intermodal service designed to decrease truck traffic in the Halifax, Nova Scotia, area. In conjunction with the Halifax Port Authority, ocean carriers, and customers, the railroad will add service between its Moncton, N.B., intermodal ramp and the Port of Halifax — a distance of about 170 miles. The service will move container traffic that currently is handled by truck. “This intermodal service will play a key role in overall integrated solutions that drive value and support growth in the Atlantic region,” CN President and CEO JJ Ruest said in a press release. Captain Allan Gray, CEO of the Halifax Port Authority, said expansion of the existing CN intermodal ramp “is showing positive results during this initial development phase, and we will continue working with CN, terminal operators and ocean carriers to find new ways of developing a more sustainable supply chain.”
Denver RTD survey finds concerns about transit safety
An online survey conducted by Denver’s Regional Transportation District found that respondents consider use of the public transit system in the wake of the coronavirus pandemic as “the least safe activity” among choices such as grocery shopping, visiting a pharmacy, visiting friends or family, and exercising outside, and those who have not used transit in the last month will take a wait-and-see attitude before riding again. However, the RTD noted that it has already undertaken several of the measures that respondents indicated would make them feel safer about riding transit, including requiring personal protective wear, such as facemasks, for operators and passengers, observing social distancing on vehicles, and cleaning and sanitizing of those vehicles. The one-week, online survey of 2,662 respondents concluded May 10.
Montreal transit operators to distribute face masks
Montreal-area transit operators will begin distributing reusable face masks on Monday as part of the effort to limit the spread of the COVID-19 virus. The Societe de transport de Montreal metro rail system will distribute 235,000 masks while commuter rail service Exo will also distribute thousands of masks, CTV News reports, rotating distribution between its busiest sites. Quebec Premier Francois Legault pledged to give $6 million to transit systems to purchase masks last week, and has asked that those who are capable of purchasing masks to do so, to make sure those without the means can benefit from the free mask distribution.
The CN Iowa line has clearance issues that prohibit double stacks. Hurts the economics to single stack.
Alex Nagel opportunity there for cold chain with all the meat packers on or near that route. Export meat backhauls in ocean reefer boxes or domestic for Toronto and Montreal or the US eastern seaboard metros connecting with CSX at Buffalo/Niagara Falls. Key though is small ramps in Iowa and local train starts serving them to marshall into a non-slow non-minimum-HPT PSR-style drag freight to connect with the rest of the CN IM network at Chicago. Both of which are anathema to OR-centric accounting. And at least in part what I think went wrong with UP Cold Connect (that and the lack of meat backhauls, the handling impacts at the transloads, and the lack of additional terminals both East Coast and West to shift the assets seasonally based on what grows when and where).
Braden I understand import distribution centers were in the works at Prince Rupert, which is kinda the LA/Inland Empire model (but with a shorter boat ride and no 45-50 mile dray in LA traffic). That’s a clear domestic IM play for CN, the US midwest and Memphis lanes are long enough to be no brainers, but the proof to your statement will come if/when they grab any truck share to Edmonton or even Winnipeg. Keep in mind the freight gets super time sensitive with inventory costs applying as soon as it transfers ownership when the ocean box hits the dock to unload/cross-load.
Hunter Harrison is rolling in his grave. A railroad actually reaching out for new customers and service. Not the PSR model.
I would like to think that maybe CN might take another look at restoring intermodal opportunities on the former IC/ICG/CC Iowa Division mainline.
Paul there could be some short sea traffic possibly in the mix. Though you’re right about ocean boxes being easy pickings.. I wonder if this will translate into CN trying short haul domestic IM in the future. Would like to see if PSR has lowered cost to become competitive in 500 mile and under range.
Of course it’s a good thing but I wonder if any of the Halifax-Moncton business will be anything but ocean cans off the port. That’s easy to compete with trucks on, particularly if there’s on dock rail at the port with a box lift direct to well car. It’s an extension of a long duration boat link essentially so adding 24 hours to the truck time isn’t as big of a deal, particularly if the boat wasn’t otherwise going to Halifax. CN promoting Halifax service for a number of rail lanes short AND long you see, good strategy I think, but let’s not confuse it with rail competition with truck for DOMESTIC intermodal service, which outside of a few longer lanes has been woeful and even the longer lanes don’t really dent the overwhelming truck market share.
CN to the rescue!
M LandeyMais oui.
AL DiCENSO — Nos voisins du nord et chers amis les Canadiens have better freight railroads than we do, but they sure can’t brag about VIA Rail.
JJ wants to build the business, improve service. What a novel approach, in today’s world!