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CN cuts Vancouver on-dock service

CN cuts Vancouver on-dock service

      The Canadian National Railway on July 13 abruptly withdrew rail service to three container terminals at Port Metro Vancouver in British Columbia, citing insufficient volumes as the reason.

      CN has since been using trucks to shuttle containers from the Centerm, Vanterm and Fraser Surrey Docks terminals to the Vancouver Intermodal Terminal in Surrey. The railroad continues to provide rail service to the Deltaport Terminal.

      Port Metro Vancouver reported on July 30 that container dwell times appear to be within acceptable operating parameters as CN and the terminals have relied on speed gates and extended gate hours to mitigate road traffic impact.

   CN's move was based on a significant decline in container flows at the terminals due to the economic downturn and the decision by several ocean container lines to relocate to Deltaport, spokesman Bryan Tucker said. The change is more economical for CN and more efficient for customers, he added.

   Port officials said they have asked the railroad to clarify what volume thresholds are required for it to resume rail service to the three terminals. They have also raised the prospect of taking legal action if further fact-finding shows CN's decision has damaged the port's operational performance or marketability, or that more trucks on local roads have negatively impacted the environment.

      Tucker said CN could resume rail service at the three terminals if volumes recuperate.

      Total container traffic for Port Metro Vancouver was down 15 percent through the first half of the year, compared to the same 2008 period.