Supply Chain Scanner - Week of August 5, 2024
Weekly blog by Emily Atkins
Jasper wildfire causes major disruption to CN trains
Shippers who have been breathing a temporary sigh of relief over the delay or possible prevention of a rail strike this summer have new worries.
This time it’s another climate-related disaster that has disrupted rail service. CN was forced on July 23rd to officially shut down its service through its interchange at Jasper, Alberta, as a wildfire threatened the town and officials called for an evacuation. Tragically, the wildfire left the iconic Canadian frontier municipality and its namesake national park in charred ruins. It has been a horrifying throwback to the fire that destroyed Lytton, British Columbia, in July 2021, which also shut down rail lines. At least with Jasper officials had enough warning to evacuate the town, preventing any loss of life.
While CN restored rail service on July 25th, the shutdown created a sizeable backlog of trains, according to rail freight data provider RailState. The company has sensors on the rail lines around Jasper and Alberta and was able to provide insight into the movement –and lack thereof – in the days surrounding the fire.
Jasper is a key node in CN’s network. Trains can travel from Jasper northwest towards Prince Rupert (Tete Jaune subdivision), south to Vancouver (Albreda subdivision) and east towards Edmonton (Edson subdivision). Before the official shutdown, RailState observed the last train on the Tete Jaune subdivision westbound on July 20th at almost midnight. Normal traffic there was about 13 trains a day, RailState said.
Another sensor at Valemont on the Albreda subdivision recorded an eastbound train that ended up going towards Prince Rupert on July 23rd, but the last true east-west traffic was also on July 20. This route normally would have 18.5 trains a day, according to RailState.
The last westbound train seen on the Edson route passed by Hinton, Alberta, on July 22 at about 11:30 pm. However, that train never made it to Jasper and was sidelined. The recent volume on this route was 44 trains a day.
These closures caused significant backlogs on the main CN line, especially affecting eastbound freight out of the Port of Vancouver and westbound movements from Alberta. RailState has identified at least five trains held near Hinton and another 13 held between Stony Plain, AB, and Hinton since July 22. These included six intermodal trains; five grain unit trains; five manifest trains; and, two tank car unit trains. Out of the Port of Vancouver, RailState identified 25 trains in the Kamloops area that would be expected to move further east.
“This is a major disruption and comes at a particularly vulnerable time,” John Schmitter, chief commercial officer of RailState, said. “There are other large fires threatening rail lines right now and months remaining on fire season. Added to that is the potential of major labour-related actions as well as coming seasonal increases for grain and LPG. It’s a volatile time and shippers need to deeply understand the actual performance of their supply chain and the risks they face.”
These risks are apparently growing. As we saw in November 2021 when massive floods wiped out vast sections of rail lines in British Columbia, climate change is creating new and increasingly powerful challenges to our transportation networks. And Canada is particularly vulnerable to rail disruptions as these east-west arteries really do carry the lifeblood of our economy.
The impact of the BC flooding was felt right across the country as retailers and manufacturers struggled with inventory being held up at the Port of Vancouver until alternate arrangements could be made. This time, at least, the rail line closure was limited to only a few days and only one railway was affected. But that’s cold comfort for those whose goods are on the delayed trains, and will be late arriving for customers.
The federal government mandated new safety measures in 2022 to help prevent rail-related wildfires. And CN for its part now has three fire-fighting trains, at least one of which was deployed to help in Jasper.
As extreme weather events increase in frequency and duration, CN says it is committed to taking proactive measures to safeguard its role in transporting goods and materials to and from markets. “Our priority is to maintain the integrity of the supply chain so that we can continue to serve our customers and power the economy,” said Matthew McClaren, assistant vice president of safety, at CN. “By deploying these new firefighting railcars, we’re not only reinforcing our commitment to securing the supply chain but also helping to support the safety and security of our neighbours in communities along our network.”
Firefighting railcars are a welcome addition to the arsenal of tools available to those attempting to prevent catastrophic losses. However, the risk from climate-related disasters remains a significant concern for anybody involved in Canadian freight transportation. From the B.C. floods to the total loss of Lytton, and now the devastation in Jasper and the surrounding area, it’s clear that these hazards are real and becoming more frequent.
On the shippers’ side, all you can really do is have contingency plans at the ready, no matter where your freight is.
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Emily Atkins
President
Emily Atkins Group
Emily Atkins is president of Emily Atkins Group and was editor of Inside Logistics from 2002 to 2024. She has lived and worked around the world as a journalist and writer for hire, with experience in several sectors besides supply chain, including automotive, insurance and waste management. Based in Southern Ontario, when she’s not researching or writing a story she can be found on her bike, in a kayak, singing in the band or at the wheel of her race car. LinkedIn: https://www.linkedin.com/in/emilyatkinsgroup/