(Reuters circulated the following article on June 23.)
CALGARY — Canadian Pacific Railway Ltd. says it will limit capacity for container traffic on the West Coast to ease congestion that has intensified amid booming trade with China.
Calgary-based CPR, the country’s No. 2 carrier, said it aims to bring “discipline” to the system by allocating an annual volume to each of the shipping lines it serves through Vancouver, based on past business and projections. Then it will supply enough rail cars to meet the allocated volume, it said.
“We’re managing volumes, and it’s something that has to be done when you’re in an unprecedented growth and surge period,” CPR spokesman Len Cocolicchio said.
CPR’s traffic was backlogged this winter by a major avalanche that buried its main British Columbia corridor just as container trade was booming, especially to and from China.
West Coast container traffic rose 24 per cent in the first quarter from the same period a year earlier, the company said.
The carrier said it is phasing in the new allocation system this month after consulting with shippers and the Port of Vancouver.
“We need a concerted, co-operative approach to build confidence with our shippers that the service they are provided is consistent and reliable,” CPR vice-president Fred Green said in a statement.
The company is targeting an expansion of its rail network to keep up with demand, but has long criticized Canada’s tax system, which it says favours the trucking industry.
“Without a positive change in the legislative environment, infrastructure expansion will be an increasingly critical issue for Canada’s economic growth,” Mr. Green said.
The company said it is adding 5,500 new intermodal truck-and-train cars to its fleet, as well as remote-control locomotives.
CPR shares closed up 30 cents to $32.05 yesterday on the Toronto Stock Exchange.