They see the train a comin’

They’re counting down the days (and maybe the hours) until the first container ship arrives at the Fairview Terminal, with an arrival time of 6 am on October 31st the new era for the Port of Prince Rupert will begin and there could be no prouder partner than CN Rail.

The first of what are hoped to be many COSCO ships will pull into Prince Rupert harbour on that day and when she does, CN Rail is hopeful of an exciting fourth quarter generated by the massive flow of containers bound for North American markets.

It’s estimated that half the containers on the first vessel to call on Fairview will be unloaded here, providing CN with the opportunity to deliver on their marketing strategy of being able to service North America faster from Prince Rupert.

The Daily News featured a front page story in Tuesday’s paper outlining CN’s review of the third quarter and its plans for the service and how they are hopeful that the new container terminal will bring "most exciting times" for the railroad.

CN RAIL COUNTING THE DAYS TO ARRIVAL OF PORT’S FIRST SHIP
Rail company says start of container flow this month is ‘most exciting news’
By Leanne Ritchie
The Daily News
Tuesday, October 23, 2007
Pages one and three

CN Rail is hoping to grow its intermodal container-handling business in the fourth quarter, starting with the first ship at Fairview Terminal on Oct. 31.

"Probably the most exciting news (for the fourth quarter) is 6 a.m. on Oct. 31, the first COSCO vessel pulls in to Prince Rupert. We are expecting, and we have confirmation because the vessel is already en route, that we will have very good vessel discharge volume from that vessel," said James M. Foote, CN vice-president of sales and marketing, during the company's third-quarter conference call yesterday.

"Those discharge volumes from COSCO should be enhanced as we go forward because we have an arrangement with Hanjin, sharing space on that boat with COSCO, and that will be adding volumes to the discharge there as we go forward."

COSCO was the first shipper to announce an agreement with CN and Maher Terminals to handle containers. Hanjin officials were optimistic last month that they too could be offloading containers, however no official agreement has yet been announced.

The vessels are part of the CKYH shipping alliance made up of four Asian-based companies.
Ships capable of carrying 5,500 TEUs (container units) from both COSCO and Hanjin will be moving on a circuit from various Asian port cities to Prince Rupert, Vancouver and Seattle. About half the containers on first vessel at Fairview are being off loaded in Prince Rupert, said Foote.

“In terms of the final destination for those boxes … about 70 to 80 per cent of that is going to the U. S.” said Foote.

“We are excited the volumes for the first call are this high… to kick off the service so to speak.”
He added that there is, within the shipping community, a desire to want to use Prince Rupert.
“It’s not only the steam ship companies who have been there to look at it, but the big-box companies,” he said.

CN has seen its intermodal traffic decline overall by one per cent in the third quarter. On the East Coast as some shipping lines have moved from Halifax to the port of Montreal. However, CN is optimistic it will see growth in its intermodal traffic operations in the fourth quarter.
“The outlook is very good,” said Foote.

While the rising Canadian dollar has not had a significant impact on the viability of CN’s Prince Rupert operation, the same cannot be said for the company’s third quarter financial results.
Hunter Harrison, CN Rails president and CEO, said CN had the best quarter possible given the poor market conditions in housing and forestry and the strong Canadian dollar.

“I don’t think the dollar will stay this way but I can’t tell you when it’s going to turn. I don’t think the housing market will stay this way but I can’t tell you when it’s going to turn,” said Harrison.

In addition, CN is calling for a strong outlook in the grain and coal sectors in Canada. Grain shipments were up 11 per cent in the third quarter and coal shipments were up 10 per cent.