(The following article by Lois Caliri was posted on the Roanoke Times website on November 10.)
ROANOKE, Va. — Three railroads, including Norfolk Southern Corp., said Monday they will share rail routes to improve freight service between eastern Canada and the Eastern United States.
The arrangement gives Canadian National and NS a direct north-south route over Canadian Pacific’s lines south of Montreal. The new route will slice as much as two days’ transit time on some 20,000 annual shipments. The new agreement will also cut 300 miles off the existing routes used by CN and NS.
“The agreement demonstrates our commitment to aggressively pursue opportunities to improve service,” NS Chairman David Goode said in a prepared statement.
CN’s customers in Quebec and the Maritimes will have quicker access to markets in the Eastern United States. The railroads can also better use their networks and locomotive and car fleets, CN president Hunter Harrison said in a prepared statement. Spokesman Mark Hallman said the railroads want to improve service for shippers. Generally speaking, freight can move from Canada to Georgia 48 hours faster under the new agreement, and freight from Canada to New Jersey, eastern New York and Pennsylvania will be between eight to 24 hours faster.
Canadian Pacific President Rob Ritchie billed the agreement as an important initiative that removes cost for the rail industry by shipping freight on the most efficient routes without regard to ownership.
The agreement is scheduled to begin Nov. 19.
“If we can save 300 miles in improved transit time, then shippers will be totally for it,” said David Ferris, managing director for JF Hillebrand USA, a New Jersey logistics company specializing in the transportation of wines and spirits. “There needs to be proof of concept for the shippers, meaning once the rails have proven the service works, then shippers will join.”
Now, the transportation system – rail, truck and ship – is stressed and shippers are reluctant to try new things for fear of the unknown, he said.
In general, shippers are having a hard time getting containers delivered. There’s not enough space on rail or vessels and there are not enough drivers to meet demand for truck delivery.