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General

Congresswoman Betty Sutton sworn in as Saint Lawrence Seaway administrator
Canadian Transportation & Logistics
Congresswoman Betty Sutton has been sworn in as the 10th Administrator of the U.S. Department of Transportation's Saint Lawrence Seaway Development Corporation (SLSDC). U.S. Transportation Secretary Anthony Foxx administered the oath of office. "We are pleased to welcome Betty Sutton to the Department as the new administrator of the Saint Lawrence Seaway Development Corporation," said SLSDC Deputy Administrator Craig H. Middlebrook.
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Report: Canada emerges as leader in creating efficient public-private partnerships
Canadian Transportation & Logistics
Canada has emerged as a leader in the creation of efficient public-private partnerships (P3) for building infrastructure, said a Conference Board of Canada report which found that 83 percent of projects met the goal of being completed early or on time. "P3 delivery is enhancing the long-term quality of public infrastructure and delivering value for taxpayers. Canadian companies are also developing expertise in P3 projects, which is creating opportunities to export their services around the world," said Vijay Gill, principal resource associate, Conference Board of Canada.
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Senators seek fee to replace Harbor Maintenance Tax
Canadian International Freight Forwarders Association
According to American Shipper: U.S. Senators Patty Murray and Maria Cantwell say they will introduce legislation when the Senate returns that would repeal the harbor maintenance tax (HMT) on imports. They say the tax is diverting American-bound cargo to ports in Canada. They are proposing to replace the HMT with what they call the "Maritime Goods Movement User Fee," which would apply to all points of entry for U.S.-bound cargo.

The legislation would "set aside a portion of the user fee for low-use, remote and subsistence harbors that are at a competitive disadvantage for federal funding and create a competitive grant program using a percentage of the collected user fees to improve the U.S. intermodal transportation system so imported goods and goods for export can more efficiently reach their intended destinations," the senators said in a statement. Murray noted that while Seattle and Tacoma generate 7 percent of the funds for the HMT, they only receive a penny for every dollar collected.

Only about half of the funds being collected by the HMT are being spent on port maintenance, with the remainder of the Harbor Maintenance Trust Fund effectively used to reduce the deficit. The senators say their bill would call for the proceeds of the Maritime Goods Movement User Fee to be fully available to Congress to provide for port operation and maintenance. This would double the amount of funds available for American ports, they said, and help exports thrive.

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Trucking


Drewry: Cash-strapped carriers returning to core services
Canadian International Freight Forwarders Association
According to Journal of Commerce: Cash-strapped container carriers are retreating to port-to-port operations from door-to-door services, allowing freight forwarders to increase their ocean market share, according to industry consultant Drewry. Maersk's sale of its U.S. trucking unit Bridge Terminal Transport is the latest evidence that "a mixture of financial necessity and commercial reality is further forcing ocean carriers to return to providing core services only," the London-based consultancy said. The move by carriers to focus on their port-to-port business has gained momentum in recent months, according to Drewry. Maersk announced the sale of its European rail business, ERS Railways to U.K.-based Freightliner in June, and Israeli carrier Zim Integrated Shipping Services sold its holdings in two companies that own container manufacturing plants in China in May.

A month earlier, Mediterranean Shipping Co. announced the sale of 35 percent of its Terminal Investments port unit to Global Infrastructure Partners. In addition, CMA CGM in January sold 49 percent of its container terminal subsidiary Terminal Link to China Merchants.

The one exception where ocean carriers can successfully extend their range of services beyond the port is the provision of rail- and barge-based intermodal services by leveraging their volumes and buying power in markets where they are competitive with trucking. The more than doubling in carrier debt in the past five years to $100 billion from $47 billion, extremely weak profitability during the period and surplus of capacity "have further pushed ocean carriers into a port-to-port mentality suitable to commodity pricing," Drewry said. This has made it easier for independent forwarding agents to provide more customer-focused supply chain management solutions.

Drewry estimates that forwarders' share of the ocean freight market has risen to 51 percent from 35 percent in 2009 and just 15 percent 20 years ago when ocean carriers were still contesting the less-than-containerload market. Forwarders' market share varies between trades, remaining fairly static at around 38 percent on the eastbound trans-Pacific route in recent years, while growing to 66 percent on the westbound leg of the Asia-Europe trade from just over 50 percent in 2009.

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Trucking associations, industry offer free cargo crime workshop
Truck News
The Canadian Trucking Alliance, the Ontario Trucking Association, Verisk Crime Analytics Canada and CargoNet will present the official launch of their "Project Momentum" agenda at the Burford Community Center in Burford, Ontario. Project Momentum is an industry initiative aiming to address cargo crime along the Highway 401 Corridor from Windsor to Montreal. The official launch includes a free workshop with law enforcement and key stakeholders to "develop immediate and actionable deliverables to raise awareness, increase prevention and garner support to combat cargo crime," said a release.
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Armed Mounties to oversee US cargo pre-inspection
CBC News
A newly released bilateral agreement says an armed Mountie will be present at all times during a Canada-U.S. pilot project for pre-inspecting truck cargo. The federal government says the measure is a reminder that Canadian law applies even though gun-toting American inspectors have set up shop north of the border. In the first phase of the cargo pilot project, which got underway, U.S. Customs and Border Protection officers are working in Surrey, British Columbia, to conduct preliminary inspection of truck shipments crossing into Blaine, Wash.
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Rail


The ABCs of investing in railroads: Canadian Pacific vs. Canadian National
The Motley Fool
E. Hunter Harrison became CEO of Canadian Pacific Railway in July 2012; previous to that, he served as the chief executive of Canadian National Railway through 2009. Few people know the railways better. In December 2012, Harrison told The Globe & Mail, "Canada, within 18 months, will have two of the most successful railways in the world." It's been about eight months since he made that statement, and we can start to measure the progress that's been made. Let's take a look at both Canadian Pacific and Canadian National to see how they're managing the cost of operations and dealing with the changing price of fuel and safety costs.
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TRENDING ARTICLES
Missed last week's issue? See which articles your colleagues read most.

    US Court upholding new FMCSA Hours of Service (Truck News Daily)
Global shipping industry report and forecast released (Canadian Transportation & Logistics)
Court reverses class action status in rail price-fixing lawsuit (Journal of Commerce)
Eastern Canada intermodal volumes increase in Q2 (Truck News)

Don't be left behind. Click here to see what else you missed.


Report: Canada needs to review and improve rail hazmat safety
Progressive Railroading
In a recently issued report, Canada's Standing Senate Committee on Energy, the Environment and Natural Resources calls on the Canadian government to initiate a major "arm's-length review" of the nation's rail regulatory framework, standards and industry practices to boost the safety of hazardous materials transportation. Titled, "Moving Energy Safely: A Study of the Safe Transport of Hydrocarbons by Pipelines, Tankers and Railcars in Canada," the report provides 13 recommendations related to energy transportation by rail, transmission pipelines and tankers.
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Air


Edmonton ups capacity to meet cargo demand
Air Cargo World
When an airport in the oil-rich province of Alberta, Canada, wanted to improve its cargo operations, it turned to the freight community. So far, Edmonton International Airport has invested $33.8 million in enhancing its cargo side, including building the Cargo Village. The Cargo Village includes places for customs, freight forwarders, air carriers, logistics and warehousing — and it already has buildings running at full capacity.
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Air Canada opens new operations centre
Canadian Manufacturing
After two years and $60 million, Air Canada's new global operations center (OC) is finished. Described by the Montreal, Quebec-based company as "state of the art," the 75,000 square foot OC will serve as the central control for 400 people on a 24/7 basis who will be monitoring, planning and controlling almost 600 flights per day.
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FEATURED ARTICLE
MOST POPULAR ARTICLE
TRENDING ARTICLE
US Senate Republicans block $54 billion transportation bill
Cargo Business News
Senate Republicans blocked a $54 billion transportation and housing bill right before leaving for a month-long recess. The Senate voted 54-43, six votes short of the 60 needed to invoke cloture on the Transportation, Housing and Urban Development Appropriations Bill, which provides funding for housing and transportation agencies.

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Canadian Transportation Agency suspends MMA/MMAC's certificate of fitness
Canadian Transportation Agency
The Canadian Transportation Agency suspended the certificate of fitness for Montreal, Maine & Atlantic Railway Ltd. and its wholly-owned subsidiary Montreal, Maine & Atlantic Canada Co., finding that the railways have not demonstrated that their third party liability insurance is adequate for ongoing operations.

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Hours of Service decision ends battle, not war
Journal of Commerce
U.S. Circuit Judge Janice Rogers Brown wrote that the recent federal appeals court decision on the new hours-of-service rules "brings an end to much of the permanent warfare" between regulators, safety advocates and the trucking industry. The U.S. Court of Appeals for the District of Columbia Circuit decision may have ended the battle, but the war over highway safety isn't over.

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Marine


Experts: Canada, US may be missing the boat on Arctic shipping
CTV News
Canada may be missing the boat on using Arctic shipping to encourage development at the same time Russia steams ahead on its own northern waters. "At this stage, we're not really in the game," said John Higginbotham, a Carleton University professor and former assistant deputy minister for Transport Canada. "The marathon started some time ago, but we haven't sent in our application yet."
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1st Chinese ship sails to Europe via Arctic route
Journal of Commerce
China has begun its first commercial transit of the Northeast Passage, with the Yong Sheng, a 19,000-ton multipurpose cargo ship, heading for Russia's Arctic waterway en route from Dalian to Rotterdam. The Cosco-owned vessel, which has a capacity for 1,118 twenty foot equivalent units, left the northeastern Chinese port and is expected to arrive in Rotterdam on September 11 — a transit of 35 days, compared with 48 days for the traditional southern route via the Suez Canal.
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CITA News Bulletin
Frank Humada, Director of Publishing, 289.695.5422
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Ryan Clark, Transportation Editor, 202.684.7160   
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