CN, Montreal Port Authority in partnership to improve supply chain efficiencies for container traffic

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CN, Montreal Port Authority in partnership to improve supply chain efficiencies for container traffic

February 03, 2011 - 04:50
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MONTREAL, Feb. 3, 2011 (PRNewswire-FirstCall) -CN, the Montreal Port Authority (MPA) and the two companies that operate the port's three key container terminals announced today two level of service agreements (LSAs) that will drive a strong focus on supply chain efficiencies.

The two agreements - one signed by CN, the port authority and Montreal Gateway Terminals Partnership (MGT), which operates the CAST and RACINE terminals, and another signed by CN, the port authority and Termont Montreal -- complement a framework agreement that CN and the MPA reached in September 2010. Under last fall's agreement, CN and the port decided to develop a best-practices vision for the gateway's supply chain, improve productivity, and leverage these gains to increase their share of global container traffic.

The CN-MPA-terminal operator agreements establish key performance indicators to improve the fluidity of the gateway. These include specific metrics for container dwell times at terminals, rail-car availability, rail on-time performance, and vessel performance.

Claude Mongeau, CN president and chief executive officer, said: "CN is pleased to have reached these important service agreements with the key players in the Port of Montreal container business. We all have a mutual interest in supporting our North American import and export customers and the ocean shipping lines. Clear, daily performance metrics will drive continuous improvement in performance and help expand the Port of Montreal's business."

Sylvie Vachon, president and chief executive officer of the MPA, said: "Our new service agreements reflect the commitment of the port's key stakeholders to supply chain collaboration and to improved efficiency and productivity of our container processing systems. This bodes well for the future and will help strengthen the Port of Montreal's competitiveness."

"Our innovative agreement with CN and the MPA will help us deliver a better service to the ocean carriers and their customers," said Kevin Doherty, chief executive officer of MGT. "The establishment of a service-level agreement recognizes the interdependency of our businesses. This co-dependency makes it imperative that we continue working collaboratively as we develop our services to our mutual clients."

Roger Carré, general manager of Termont Montreal, said: "CN's strategic focus on deeper customer engagement is a welcome development. We will both benefit from faster traffic flows as we continue to look for the next level of efficiencies in our joint operations."

About the Montreal Port Authority

Operated by the Montreal Port Authority (MPA), the Port of Montreal is a major diversified transshipment centre that handles all types of goods - containerized and non-containerized cargo, liquid bulk and dry bulk. It is a leading container port served by seven of the 10 largest container-shipping lines in the world. The Port of Montreal handled 1,331,351 TEUs (twenty-foot equivalent units) in 2010, representing 12,033,434 tonnes of cargo.

The Port also handled 8,151,136 tonnes of liquid bulk, 3,204,076 tonnes of dry bulk, and 2,380,863 tonnes of grain in 2010. Port activity supports 18,200 jobs and generates $1.5 billion in economic spin-offs per year. For more information about the Port of Montreal, visit the authority's website at www.port-montreal.com.

About Montreal Gateway Terminals Partnership

Strategically situated at the gateway to the vast and vibrant North American markets, Montreal Gateway Terminals Partnership's two container terminals are in operation year-around. Gateway Terminals are efficiently serviced by both CN and Canadian Pacific Railway, which have direct links to major American rail carriers. This strategic location is also connected to the network of highways that lead directly to markets in Quebec, Ontario, Western Canada as well as the United States. The direct access to train or truck transportation services provides shippers with the advantage of reliable, cost-competitive inland transportation to major North American markets. For more information about the Montreal Gateway Terminals Partnership, visit MGT's website at www.mtrtml.com.

About Termont Montreal

Termont Montreal Inc. is located at Maisonneuve Terminal at the Port of Montreal and performs stevedoring and terminal handling of containers. Termont Montreal is owned by Termont Terminal Inc. (owned by Logistec Stevedoring Inc., a wholly-owned subsidiary of Logistec Corporation, and Cerescorp Company) and Cortelina International Corp.

Termont's facility is equipped with specialized gantry cranes and intermodal terminal equipment with direct access to both CN and CP rail lines. With the use of modern equipment, computerized inventory control with EDI capabilities, and experienced personnel, Termont provides its customers with increased turnaround and efficient services. For more information about Termont Montreal, visit its website at www.termontweb.com/sites/termont/home.php.

About CN

CN - Canadian National Railway Company and its operating railway subsidiaries - spans Canada and mid-America, from the Atlantic and Pacific oceans to the Gulf of Mexico, serving the ports of Vancouver, Prince Rupert, B.C., Montreal, Halifax, New Orleans, and Mobile, Ala., and the key metropolitan areas of Toronto, Buffalo, Chicago, Detroit, Duluth, Minn./Superior, Wis., Green Bay, Wis., Minneapolis/St. Paul, Memphis, St. Louis, and Jackson, Miss., with connections to all points in North America. For more information on CN, visit the company's website at www.cn.ca.