CN introduces new grain products for 2015-16 crop year

In preparing for the upcoming harvest and continuing to look for ways to innovate and develop new approaches to doing business, Canadian National Railway Company (CN) has introduced a new suite of products for western Canadian grain for the 2015-16 crop year, the company announced July 6, 2015.

Export Fleet Integration Program

One of the factors that determine the overall maximum size of CN’s western Canadian shipment program is the size of the covered hopper fleet, the railroad says. “Increasing the size of CN’s overall covered hopper fleet will result in an opportunity to increase the overall size of the weekly western grain hopper program, particularly in the peak demand period after harvest,” CN says.

“Like our popular Commercial Fleet Integration Program (CFIP), the new Export Fleet Integration Program allows customers to bid to integrate privately owned, shipper-supplied cars into CN’s common western grain hopper car fleet, in turn receiving car supply based on a pre-determined car cycle time. CN will only consider revenue-neutral offers of zero dollars per car, recognizing that these cars will be used for Revenue-Cap regulated shipments. Priority in accepting cars into this program will be on a first-come, first-served basis, and the process will terminate at CN’s discretion. The key benefit to program participants is year-round off-the-top car supply as well as priority in car order confirmation and train service planning,” the CN says.

Under this program, the added car fleet capacity supplied by customers is allocated back in 25-car blocks that can be combined with other car allocation shippers receive, in turn allowing customers to benefit from multi-car block incentive rates. The program applies to CN-served loading locations in western Canada to CN-served unloading facilities in Vancouver, Prince Rupert, and Thunder Bay, as well as St. Lawrence River ports receiving rail.

Private Shuttle Trains

Under this program, customers can offer CN discrete sets of private cars for unit train service between pre-approved, CN-served loading locations in western Canada and pre-approved unloading facilities at CN-served destinations in Vancouver, Prince Rupert, and Thunder Bay, as well as at the St. Lawrence River ports of Montreal and Quebec City.

This program operates outside the general car allocation process—these cars are not integrated into CN’s common western Canada covered hopper fleet. The amount of shipping capacity generated by this program will be driven by cycle time, which is in part determined by the efficiency of shipper loading and unloading facilities as well as the distance between origin and destination.

Like the Export Fleet Integration Program, customers will offer cars into this program at zero dollars per car, recognizing that these cars will be used for Revenue Cap-regulated shipments. Priority in accepting cars into this program will be on a first-come, first-served basis, and the point at which cars will no longer be accepted will be at CN’s discretion. Besides operating outside the car allocation process, customers have direct control over what origins the private set will be directed to, and efficient shippers will benefit from the added capacity generated by turning their private fleet assets quickly, CN says.

Car Auction

CN’s weekly car auction allows customers to bid on cars supplied out of the railroad’s general western Canada-covered hopper pool in order to secure a guaranteed allotment of 25-car shipping blocks. The program applies to CN-served loading locations in western Canada with a minimum 25-car spot to destinations in CN-served Revenue Cap-regulated and commercial corridors. Third parties who do not own or control CN-served loading facilities in western Canada can also participate in this program.

Each week the number of cars to be offered via auction for Revenue Cap-regulated and commercial corridors will be communicated along with the minimum bid to be considered by CN. The total number of cars offered via auction each week will be determined in part by market factors and operational considerations.