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

Loud jets are annoying Sumas residents, town’s mayor says

Flights out of Abbotsford airport turn over border town and annoy residents, Sumas mayor says

Fraser Valley Bandits hosting Player ID Camp

Camp occurs on Saturday at the University of the Fraser Valley

Farmland-for-industry plan not dead, Abbotsford mayor says

Council won’t ask ALC to reconsider their latest rejection of exclusion request

VIDEO: Fraser Valley Cardinals split home opener games

Junior varsity team battles Coquitlam, Victoria over the weekend

Gas prices in Metro Vancouver hit 172.9 cents a litre

And one analyst expects it to only go higher this week

Homeless activists outside Notre Dame demand ‘a roof too’

Wealthy people have donated millions to effort to rebuild cathedral after devastating fire

Anti-SOGI activist slams ban on B.C. dad speaking out about transgender son’s case

A judge has told the father to stop publicly objecting to his son’s gender

PHOTOS: Green Party Leader Elizabeth May says ‘I do’ on Earth Day

May and John Kidder got married Monday morning in Victoria

Victims injured in Lower Mainland deck collapse ranged from 15 to 83 years old

Victim Services staff have reached out to those hurt and their families

‘Ghost restaurants’ cooked up by Joseph Richard Group to meet demand of delivered food

The new Meal Ticket Brands venture aims to ‘disrupt’ the local restaurant industry

Sri Lanka invokes war-time military powers after nearly 300 killed in Easter bombings

Sri Lanka’s minister of tourism says 39 foreign tourists were killed in the Easter Sunday attacks

Torched SUV linked to Vancouver’s fourth homicide

Manoj Kumar, 30, was found dead from gunshot wounds in the Kitsilano neighbourhood

Multiple sailing waits as BC Ferries deals with Easter Monday traffic

89 extra sailings had been added to the long weekend schedule

Ex-mayor of northern village claims its drivers are overpaying ICBC $1,800 a year

Darcy Repen says data shows Telkwa households are being ripped off for car insurance

Most Read