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Message from CN Regarding Storage in Western Canada

 

(CSCB) The following message is from the vice president of Intermodal at CN.

During the last few months CN has been reviewing storage capability at its Western Canadian Terminals. There have been a number of instances in the past year where the number of containers stored surpassed normal operating limits.

CN has offered storage in the past at these locations to support short-term export requirements. In the majority of cases however, this storage has become longer term and is impacting the smooth flow of containers arriving at the terminals for tendered rail movements.

CN continues to invest in all of its terminals and has expanded a number of its Western Canada facilities to handle future growth from both Europe and the Far East. For CN to protect the long term handling capacity of these facilities, containers arriving or departing these Terminals must dwell for a minimum period of time.

CN therefore wishes to advise that effective January 2, 2006 CN will no longer store empty containers at its Western Canada facilities in Winnipeg, Edmonton, Calgary and Saskatoon.

CN will accept empty containers moving to these locations by rail for export loading purposes, containers moving in the domestic repositioning program, and empty containers ingating for rail movement.

CN will continue to offer storage for the balance of 2005, with the following changes effective August 1, 2005. CN will introduce a new fee schedule for its Western Canadian Terminals, and will also establish inventory levels at its 4 Western Terminals.

1. There will be an ingate fee of $40 for any container being returned to its terminals for purposes of storage.

This fee will not apply to any containers previously used in domestic service that has rail instructions to another final destination, or to any empty containers arriving at the terminal for rail repositioning. In addition, this fee will not apply to any empty containers being rail repositioned into Western Canada for purposes of export loading.

2. All empty containers arriving at CN Western Canadian Terminals will be subject to daily storage fees of $4 per container per day. The storage fee does not apply to containers returned empty from the Domestic program that have furthurance [sic] rail instructions, or empty containers ingating for rail repositioning.

3. Inventory limits will be established for each Steamship Line wishing to store empty containers at each Western Canada Intermodal Terminal. This inventory level will be based on normal export requirements. You will receive information regarding inventory levels within the next week.

 

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JULY . 2005