Loading Canadian Pacific containers - Date/Photographer unknown.

13 August 2012

Canadian Pacific to Halt Container Service

Milwaukee Wiscosin USA - The Canadian Pacific Railway will discontinue its container service at the Port of Milwaukee, a decision that has upset city officials and some business people.
 
"We're very, very concerned about the long-term impact," Milwaukee Mayor Tom Barrett said Monday.
 
In a recent letter to Canadian Pacific Chief Executive Hunter Harrison, Barrett expressed "alarm and dismay" over the development and implored Hunter to reconsider.
 
"The railroad's unilateral action brings significant economic consequences to a wide range of partners," Barrett wrote. He said the decision "will cost numerous jobs in our region" and increase expenses for companies here.
 
Canadian Pacific spokesman Ed Greenberg said the decision to close the intermodal operation at the port as of 1 Sep 2012 is part of an ongoing effort by the railroad to enhance service, reliability, and efficiency system wide.
 
"We're a privately owned and operated railroad and we must consider the service needs and efficient operations for our whole customer base, and our shareholders," he said. "The fact is the Milwaukee terminal was not adding to the improved service we are providing our customers throughout our 15,000-mile network."
 
He said the intermodal yard here has three local customers and that the railroad is working with them on transportation alternatives. But city spokesman Jeff Fleming said the number of end users of the service is much greater than three.
 
The development means companies that have been using the port's intermodal yard to receive container loads of goods from overseas will need to have them trucked in from Chicago, said Rob Gardenier, president of customs broker M.E. Dey & Co.
 
The containers don't arrive by ship. Rather, they come in via rail from the ocean ports of Vancouver or Montreal. The big steel boxes are taken off the trains at the port's intermodal yard, then are carried by truck to their destinations.
 
Gardenier said as many as 80 containers a month arrive at the intermodal yard. Fleming wouldn't disclose the volume of the traffic, but said it has been growing.
 
In his letter to Canadian Pacific, Barrett estimated it would cost an extra US$600 per container to truck the boxes in from Chicago. Gardenier estimated the added cost at about US$400.
 
"The Port of Milwaukee and our economic development partners have been heavily marketing this service and, despite the state of the economy, the number of container lifts has increased over 9 percent in the last two years as a result," he wrote to the railroad. "We anticipate further growth in the number of lifts if the service remains intact."
 
In one regard, however, the city's marketing message hasn't kept up with changing developments. On its web page touting the intermodal operation, the Port of Milwaukee cites praise from Weyco Group Inc. But Weyco, a Glendale-based shoe company that imports footwear, no longer uses the service. The firm declined further comment.
 
Gardenier said loss of the intermodal service could deter business growth here.
 
Without the container yard "there's no incentive, I believe, for businesses to be able to expand here, particularly if they're heavily involved in international freight, and I think it's a big problem," he said.
 
Barrett said the one-month notice Canadian Pacific gave on the termination of the intermodal service was inadequate. He asked the railway, at a minimum, to delay the shutdown.
 
Rick Romell.