Forestry and legumes shippers say railways prioritized other commodities

Companies say they lost millions on Port of Vancouver shipments

Canada’s forestry and legume industries say the country’s two major railways prioritized other commodities over their shipments to the Port of Vancouver late last year, costing companies millions amid surging demand for Canadian goods abroad.

Canadian National Railway Co. and Canadian Pacific Railway Ltd. imposed embargoes in the Vancouver area in November and December that hurt pulp and paper mills, sawmills and exporters of legumes such as dry beans and lentils, according to industry groups.

Embargoes temporarily stop or restrict traffic related to certain customers, goods or loading points and can cause missed shipments or backed-up supply chains.

READ MORE: Pulp mill struggles long-term, Premier John Horgan says

Derek Nighbor, head of the Forest Products Association of Canada, warned the railways against playing “commodity whack-a-mole.”

“There were only a few commodities that seemed to be caught in the crosshairs,” he said Monday. “We need to figure out exactly why these embargoes and stoppages are happening.”

Three sets of embargoes affected forestry products in Vancouver and nearby Squamish, B.C., and marked the second year in a row of frequent stoppages, Nighbor said. He claimed the lost sales, rebooked routes and additional storage cost his sector $500 million in 2018.

Last week, the Canadian Transportation Agency flexed its newly enhanced authority under the 2018 Transportation Modernization Act and launched an investigation into whether rail companies are fulfilling their obligations following industry complaints, with hearings set for next week.

In an email, CN acknowledged the recent congestion on the West Coast. It pointed to harsh weather and the intricate supply network that feeds into Canada’s busiest port.

“CN acted swiftly and efficiently to serve its customers during this period and played its role in moving record volumes through Vancouver’s complex and multi-commodity supply chain,” spokesman Jonathan Abecassis said in an email.

CP cited record grain shipments and a busier port in recent months as global trade tensions work in Canada’s favour, with a Chinese tariff on U.S. soybeans and retaliatory European tariffs on U.S. corn spurring more Canadian exports.

Both railways have said they will co-operate with the investigation.

In the Vancouver area, CN moved record volumes of freight in November, December and, to date, January. The Montreal-based company invested in rail cars, track doubling and expanded rail yards — particularly between Chicago and the West Coast — to the tune of $3.5 billion over the past year, 30 per cent more than its three-year average. It has plans to keep building in 2019.

Calgary-based CP, meanwhile, aims to have 1,000 more grain cars in service by this spring, following CN’s order for 1,000 hoppers last May.

Christopher Reynolds, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Terrace’s first licensed marijuana store opens

KJ’s Best Cannabis will sell cannabis, pre-rolled joints and oils for customers

First rugby pitch in northern B.C. opens in Terrace

The Northmen Rugby Club held the ribbon-cutting celebration

B.C. Maxim Cover Girl semi-finalist victorious despite second-place finish

Brandi Hansen says her main goal was to spread an empowering message to others

Music that celebrates the Skeena landscape premieres in Terrace

“Skeena Suite” was dedicated to and conducted by retiring music teacher Geoff Parr

ValhallaFest readies for second annual weekend event

Number of festival-goers expected to double

VIDEO: Rare white killer whale captured by drone near Campbell River

The transient orca has been named Tl’uk, a Coast Salish word that means ‘moon.’

B.C. imposes interim moratorium on resource development to protect caribou

The caribou population in northeastern B.C. has dwindled over the last two decades

B.C. sculptor depicts epic eagle battle in latest piece that took 2,500 hours

Clasped in one of the raptor’s talons is each one’s desire: a living venomous diamondback rattlesnake

Students disciplined after anti-LGBTQ signs posted in Kamloops high school

Vessy Mochikas, SD73’s principal for inclusive education, called incident a learning opportunity

Air Canada expects Boeing 737 Max to resume flying by September or October

Air Canada isn’t worried about safety of the planes, says vice-president

‘The Fonz’ gives thumbs up in letter to dyslexic students at B.C. school

Students in Maple Ridge reached out to Henry Winkler after reading one his Zipster books.

PHOTOS: MP Mark Warawa loses brief battle with cancer

The Conservative Member of Parliament and long-time community advocate died in hospice this morning

B.C. teen killed by falling tree near Victoria

Second youth also injured in freak incident during field trip at Camp Barnard near Sooke

Most Read