CITA News Bulletin
Jan. 16, 2014

Genesee & Wyoming swings deal to acquire major Canadian Pacific line, create large US regional railroad
Progressive Railroading
If the Surface Transportation Board approves a major line purchase transaction with Canadian Pacific, Genesee & Wyoming Inc. will begin operating its largest U.S. railroad. Recently, CP and GWI announced they executed an agreement through which the Class I will sell the west end of its Dakota, Minnesota & Eastern Railroad line to GWI for $210 million. The west end encompasses about 660 miles of track between Tracy, Minn., and Rapid City, S.D.; Rapid City and Colony, Wyo.; and Rapid City and Dakota Junction, Neb.More

RAC says: Canada issues new rail safety rules
Progressive Railroading
Canadian Minister of Transport Lisa Raitt approved new or revised rules concerning the safety and security of unattended locomotives, uncontrolled train movements and crew sizes, according to the Railway Association of Canada. The rules provide an additional layer of safety to the rail industry by clearly articulating what a train crew is required to do to secure equipment or a train, RAC officials said in a press release.More

North Dakota train derailment to trigger debate about safe oil transport
Canadian Shipper
A train derailment and fire in North Dakota that forced the evacuation of a nearby town will trigger debate about the safety of transporting oil as the U.S. reviews TransCanada Corp.'s proposal to build the Keystone XL pipeline. More than 2,000 North Dakota residents were urged to flee possibly toxic fumes from the fire that engulfed BNSF Railway cars carrying oil after they collided with another train about 25 miles west of Fargo. BNSF is owned by Berkshire Hathaway Inc. of Omaha, reported Bloomberg News. More

Alberta grain growers face rail competition from crude producers
Progressive Railroading
Grain farmers in Alberta, Canada, are having difficulty moving last fall's record harvest to various markets by rail because of competition from crude-oil producers for rail service, according to the Alberta Federation of Agriculture. Although 2013 was a record year for grain growers, with production up about 40 percent for some crops, a lot of grain remains in storage and farmers are unable to transport it, federation officials say. More

Will safety investments to protect railroads, public increase CBR costs?
A sell-off of shares in companies engaged in extracting oil from the mid-continent Bakken formation was the first indication from investors that they expect government scrutiny of the potentially explosive crude will disrupt crude-by-rail and escalate its costs.More

Trucking takeovers eyed
Blacklock's Reporter
The federal Competition Bureau will review two major takeovers within the trucking industry, but it's not likely to hear many complaints from shippers about the buy-ups. Montréal-based TransForce Inc., already the largest trucking company in Canada, has acquired the country's third-largest carrier Vitran Corporation of Toronto for $136 million; and a Halifax freight line Clarke Inc. for $88 million.More

Shipping container makes world smaller, world economy bigger
The Kansas City Star
Next time you open a bottle of Chilean wine — or wear a shirt from Bangladesh or watch a flat-screen television from South Korea for that matter — toast Malcom McLean. Thanks to McLean — a North Carolina trucker who launched a revolutionary way to move goods in 1956 — you're paying substantially less for that imported wine, clothing or electronics or about everything else manufactured around the world.More

MTA: Shippers to beware of fuel price variations across Canada
Canadian Shipper
The Manitoba Trucking Association is urging the trucking industry to inform shippers on better understanding the variations in fuel prices across Canada. The MTA said fuel prices are rising at a rapid pace and over the past several months, trucking companies have seen significant increases in Western Canada due to a Shell plant shutdown in Edmonton, downed Suncor equipment in Fort McMurray and a power loss incident in Edmonton, Alberta. More

All-season NW Territories highway to connect Canada 'sea to sea to sea'
Truck News
A groundbreaking ceremony marked the beginning of construction of the Inuvik-to-Tuktoyaktuk highway in the Northwest Territories, effectively extending the Dempster Highway through to the Arctic coast. Prime Minister Stephen Harper participated in the ceremony, accompanied by Bob McLeod, premier of the Northwest Territories; Nellie Cournoyea, chair and chief executive officer of Inuvialuit Regional Corporation; as well as Robert Alexie Jr., president of the Gwich'in Tribal Council.More

ICAO: 2013 global air cargo up
Canadian Shipper
Global air cargo traffic increased 1 percent year-on-year in 2013, the equivalent of 51 million tons of freight, according to the U.N.'s International Civil Aviation Organisation. ICAO said Asia-Pacific was still the world's biggest air freight market with a 31 percent share of global traffic, a 7.2 percent year-on-year increase.More

Canadian ship owners seek solution to impending US regulations for ballast water discharges
Canadian Shipper
The U.S. Environmental Protection Agency will implement its new Vessel General Permit, which will demand a technical solution that is currently unavailable to the marine industry. According to the Canadian Shipowners Association there is little flexibility in the VGP to accommodate this delay, leaving ship owners with an impossible requirement. This untenable situation could lead to significant impacts for Canadian ship owners if left unresolved. More

Maersk is still confident that P3 will gain regulatory approval
Felixstowe Dockers
Denmark's Maersk Line says it remains confident that its proposed P3 vessel sharing alliance with Mediterranean Shipping Co. and CMA CGM will gain the necessary approval and that it will launch in the summer as originally planned after U.S., European and Chinese regulators met in Washington, D.C. "The process is developing as expected and we are confident to receive an approval of the alliance for the cooperation to be launched in the second quarter next year, perhaps during the last part of the quarter," said Maersk Line's chief trade and marketing officer, Vincent Clerc, in an interview with Shipping Watch, a Danish newsletter.More