3EA46D986297C5A3

Opportunity Assessment for an Inland
Intermodal Container Facility in Kamloops
Final Report
September, 2006
Prepared by: Satwinder Paul and Nova Woodbury

Executive Summary
The impetus for developing an inland intermodal container facility in British Columbia emerged
because of the increased use of containers in international trade. This demand has generated
unprecedented growth in container movement through Vancouver ports, straining capacity and
harming the efficiency of ports to move commodities. However, not all container activities must
take place at ports; there are many components, which can occur inland and still contribute to
the efficiency and productivity of the marine ports.
There are many reasons why Kamloops offers a unique opportunity for an inland intermodal
container facility. First, such a facility would offer reload services, storage, or custom facilities for
containerized, break-bulk, and bulk cargo moving by rail to the Vancouver Port. Second, given
its proposed location on the Trans-Canada and Yellowhead highways and with the line-haul
efficiency of both Canadian National (CP) and Canadian Pacific (CP) railways, the facility would
be the best-situated intermodal facility in the province. Finally, the community of Kamloops
recognizes the value of an intermodal container facility to help local companies generate profits,
create value, and improve regional and international competitiveness.
Project Objectives:
The overall objective of this project is to conduct an opportunity assessment for an intermodal
container facility in Kamloops. This assessment includes a succinct literature review, a small
scale and general survey of intermodal reload facilities in the region, and an analysis of the
potential of developing a container facility in Kamloops. The supporting objectives include the
following:
1. An investigation into the different types of terminals, such as:

• Trailer on a flatcar/Container on a flatcar (TOFC/COFC)
• Truck-Rail Bulk Trans-loading Facilities
• Truck-Rail Reload Facilities
2. Identifying and interviewing the key decision (local and regional) makers from the marketing
and operations departments of Canadian National Railway (CN) and Canadian Pacific Railway
(CP), as well as port authorities in Vancouver and the Lower Mainland.
3. Identifying and assessing the suitability of possible intermodal facility locations within a
50 km radius of Kamloops, including the following considerations:
• Rail requirements
• CN sites versus CP sites
• Land size and availability
4. Identifying what is currently happening and form an understanding of the transportation
logistics in the reload and containerization industry and how the Kamloops opportunity
compares, compliments, or conflicts with it.
5. Interviewing industry stakeholders such as Weyerhaeuser, Tolko Industries, Arrow
Transportation Systems, and The Mercer Group (Celgar) to determine the potential volume of
lumber and pulp for containerization.
6. From the research conducted, identify the opportunities for Kamloops and develop
recommendations that will move the opportunity forward.
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Summary of Findings
The opportunity exists to develop an inland container facility in Kamloops. Kamloops’ highway
and rail network currently provide excellent service, access, and intermodal linkages for the
transportation of lumber, pulp, and finished goods to both domestic and international markets.
There are a number of possible locations for such a facility in Kamloops. The parcels
considered in this opportunity assessment all have either direct rail access or require a minimal
amount of additional rail infrastructure. However, some of the parcels may be ruled out,
depending on the volume of containers, the type of products, warehousing capacities, and other
services the facility decides to offer.
Based on research findings and current reload activities in Kamloops, the best opportunity may
be a mixed-use facility. This mixed-use facility would include lumber reload from truck-to-rail car
for North American markets, and put lumber into containers for export markets through the ports
of Vancouver and Prince Rupert.
Usually, intermodal facilities on their own are not high generators of employment, but providing
value-added services at the facility could generate employment and attract larger export-
oriented manufacturers. Many factors affect the level of skilled and general labour required,
such as the types of value-added services offered, the volume moved through the facility, and
operating hours. Regardless, such a facility requires a wide range of jobs at different skill levels,
including senior and middle management, clerical, security, supervisors, maintenance workers,
truck drivers, and skilled labour.
Kamloops Inland Intermodal Container Facility Employment Projections:
# People
Activity Per shift Responsibility
General Manager 1 Plant Management and marketing

Receptionist/book-
keeper 1 Reception, book-keeping
Gate person 1 Receive trucks
Dispatcher 1 Truck and rail scheduling
Site Manager 1 Site foreman/planning
Reach-stacker driver 1 Unload and load containers
Ground crew 2 Stuffing/de-stuffing, consolidation
Ground support 2 Truck and rail support
Warehouse workers 2 Storage
Security 1 Keep site secure
Maintenance 2 Container repair & cleaning
Value-added services 5 Packaging, bagging, etc.
Total 20 Per shift
Potential Local Employment Projections:
Manufacturing Sector 75 Plant expansions and new plants

Transportation Sector 50 New trucking operations
Total 125
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Research findings indicate that the main opportunity in Kamloops for this facility is to transport
lumber and pulp products (as large volumes of these products originate in, or pass through,
Kamloops either on truck or regular rail cars) to points in the Lower Mainland for consolidation,
containerization, and export. There is an opportunity for the facility to handle a percentage of,
or all, the 43,710 container volume generated in the Kamloops region annually, as indicated in
the table below. These potential volumes are not commitments, but an indication of potential
market sizes available to the Kamloops intermodal container facility.
Potential Commodities Volumes

Commodities Potential Volume 40’ Container Equivalent
Kamloops Weyerhaeuser 12 million board feet/year 400
Lumber
Canada Weyerhaeuser 170 million board feet/year 5,667
Lumber
Okanagan Falls 10 million board feet/year 333
Weyerhaeuser Lumber
Kamloops Weyerhaeuser 492,750 tons/year 19,710
Pulp
Castlegar Mercer’s Pulp 440,000 tons/year 17,600
Total Containerized Volume/ year 43,710
Benefits of an Intermodal Container Facility
An intermodal container facility in Kamloops could:
• Reduce the numbers of heavy transport trucks on the Trans-Canada Highway travelling
between the Rockies and the Lower Mainland, resulting in significant savings in highway
maintenance and rehabilitation costs
• Provide another option for shippers to get their export products to port
• Increase capacity and efficiency of the Vancouver Port
• Reduce shipping costs for local manufacturing companies for both commodity and
export products
• Be a unique selling point for attracting manufacturing companies to Kamloops
• Create jobs in the region as a result of expanding the freight, intermodal, and distribution
industry in Kamloops
• Attract investment in the transportation infrastructure of Kamloops from railways, private
industry, and senior levels of government.
Challenges to Establishing an Intermodal Container Facility

While there are definite advantages, there are also a number of challenges in establishing an
intermodal container facility.
• Rail Cooperation and Buy-in: To encourage intermodal trains to stop in Kamloops to pick
up containers cars and drop off empty containers, Kamloops has to present a business
case to the railways proving that the extra time and costs of providing this switching
service will be recovered through increased business.
• Access to Empty Containers: Container owners will have to be matched with container
customers so the facility can access the right containers from the right shipping lines.
Tioga Group (2002) identified five key factors that hinder the ability to access empty
containers. They include: import/export timing or location mismatch; ownership
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mismatch (e.g., wrong steam ship line); type mismatch (e.g., wrong size, wrong type, or
tri-axle chassis required for heavy export); off hiring of leased containers, and; lack of
steamship-line incentive.
• Logistic Challenges: Virtually all lumber mills in BC send their products destined for
export by truck to Vancouver because 1) trucks have quick response times, 2) truck
rates are more competitive over rail because of backhaul opportunity, and 3) the large
warehousing infrastructure associated with container stuffing facilities in the Lower
Mainland allows for large storage for all product lines and the ability to consolidate
customer orders to their specifications. Another challenge is that customers can
transport higher volumes on a rail car versus a container. For example, a box car can
hold 85 tons versus 25 tons in a 40-foot container. There may not be any cost advantage
to warehouse, consolidate stuff, and ship containers from Kamloops versus from the
Lower Mainland. A reason to switch to Kamloops may only occur when capacity in the
Lower Mainland is exceeded and the need for other facilities inland becomes critical.
Incentives and support offered by port authorities, shipping companies, rail lines,
container terminals, or government may expedite inland intermodal container facility
development.
• Local Industry Stakeholders: To get enough volume for the intermodal container facility
in Kamloops to meet the business case requirements of the railways, the facility will
most likely have to be multi-use and serve lumber, pulp, and other value-added
commodities. The facility should provide a number of customer specific services
including container stuffing, reloading, cross-docking, warehousing, storage of empties
and consolidation. It is important to garner and retain support for this facility from all local
industry and manufacturers, as well as key customers, such as Weyerhaeuser, Tolko,
Mercer, and Arrow.
Next Steps:
There is a solid opportunity for an inland intermodal container facility in Kamloops. While the
objective of Venture Kamloops was to investigate the opportunity, industry partners will actually
develop the opportunity. If viable, a leadership organization such as Venture Kamloops can
provide facilitation, identify industry partners, and access land and government grants. To
realize such a facility, the following steps are necessary:
• An industry Steering Group from the people surveyed in this report should be brought
together. This group should plan, partner, and promote the inland intermodal container
facility in Kamloops.
• Ongoing research and discussions will be required throughout this planning phase with
the Vancouver Port Authority, shipping lines, railways, industry, and other stakeholders
to ensure that the project provides benefits, efficiencies, and impacts the productivity of
all logistical aspects that are involved in the movement of containerized commodities.
• A clear understanding regarding the relationship between shipper, container owner, and
steamship line is essential to access empty containers and to fit into the logistical
formula.
• The Steering Group will determine which type of intermodal facility is the best fit for their
needs and the needs of Kamloops based on technical and marketing considerations.
This Steering Group may also become the core nucleus of investors and customers.
• The Steering Group will develop a business case to present to CN and CP, as well as
other stakeholders, for their cooperation and buy-in.
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Acknowledgements
Venture Kamloops acknowledges the support of:
Kamloops Indian Band
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Table of Contents
Executive Summary ......................................................................................................... i
Acknowledgements ......................................................................................................... v
Table of Contents ............................................................................................................vi
1.0 Introduction ............................................................................................................... 1

1.1 Project Objectives.................................................................................................. 2
2.0 Intermodal Facilities .................................................................................................. 4

2.1 Types of Intermodal Facilities ................................................................................ 4
2.2 Common Types of Intermodal Terminals ............................................................... 7
2.3 Definition of an Inland Container Facility ............................................................... 9
Design and Layout of Inland Container Facilities: .................................................. 10
3.0 Literature and Survey Findings ............................................................................... 11
4.0 Current Container Logistics ..................................................................................... 17

4.1 Container Logistics - Vancouver .......................................................................... 17
5.0 Kamloops Role in Intermodal Strategy ................................................................... 19

5.1 Rail Service In Kamloops..................................................................................... 19
5.1.1 CN Operations in Kamloops.......................................................................... 20
5.1.2 Canadian Pacific Operations......................................................................... 21
5.2 Intermodal Industry Stakeholders ....................................................................... 21
6.0 Intermodal Container Facility Locations in Kamloops.............................................. 26
7.0 Intermodal Container Facility Opportunity in Kamloops........................................... 30

7.1 Kamloops - Potential Intermodal Facility Type..................................................... 30
7.2 Commodity Volumes in Kamloops ....................................................................... 31
7.3 Benefits of an Inland Container Facility in Kamloops........................................... 31
7.4 Labour Requirements ......................................................................................... 32
7.5 Challenges........................................................................................................... 33
8.0 Next Steps............................................................................................................... 35
9.0 References .............................................................................................................. 36
10.0 Survey Participants ............................................................................................... 39
Appendices ................................................................................................................... 40
Appendix “A”: Glossary of Intermodal Terms ............................................................... 41
Appendix “B”: Container Companies and Port Authorities............................................ 55
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1.0 Introduction
In December 2004, the BC Progress Board’s publication “Transportation as an
Economic Growth Engine: Challenges, Opportunities and Policy Suggestions,”
analyzed the importance of developing capacity to redistribute containerized
freight at sites removed from existing ocean ports. A key recommendation from
the report (pg. ii) was that “consideration should be given to establishing an
inland (or inter-modal) container handling facility—for example in Prince George,
Kamloops and/or the Fraser Valley—given the shortage of land available near
some tidewater ports.”
Transportation has played an important role in the historical development of

British Columbia and its importance continues today. In BC, the transportation
network sustains 44% of the province's domestic product and supports almost
one million jobs directly and indirectly. BC exports more than $30 billion in goods
each year—all of which depend on its transportation network. Maintaining and
expanding this network is crucial to increasing investment and jobs in BC.
Transportation, including warehousing, is also an important—and growing—
source of employment, accounting for 114,000 jobs in 2003 (or 5.6% of total
employment).
These facts are the impetus for the community of Kamloops to respond to the
anticipated growth and explore the possibility of an intermodal container facility in
its strategic economic development plans. There are also many other reasons to
explore such an opportunity. Intermodal facilities provide an opportunity for small
communities to diversify its infrastructure, transportation rates, and transportation
equipment resource base to attract and to grow value-added ventures. The
manufacturing sectors in the community of Kamloops have said that without
competitive rail container intermodal services, shippers in smaller communities
will remain at a logistical disadvantage. Many industries are affected by the lack
of intermodal services including: agricultural processors, manufacturers,
commodity producers, building suppliers, and retailers. This gap in infrastructure
negatively impacts the entire province's economy through higher shipping costs.
Inland intermodal container facilities have the potential to give small interior
communities equal access to Canada’s export markets.
Intermodal facilities occur when two or more modes of transportation meet for the
purpose of exchanging cargo directly or through intermediate storage. An
intermodal facility requires the necessary space and equipment to receive cargo
by one mode of transportation and ship it out by a different mode. In between the
inbound and outbound movement, the cargo may be consolidated with other
incoming cargo of the same type, separated into smaller outbound shipments, or
directly transferred between two modes as part of a seamless intermodal
shipment. Intermodal container facilities are special types of intermodal terminals
and are usually associated with overseas shipments.
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Intermodal container handling facilities are almost exclusively located at ports
and major rail centres. In Western Canada, intermodal container handling
facilities are currently situated in Vancouver, the Lower Mainland, Prince Rupert,
Calgary, and Edmonton. A typical problem faced by manufacturers in small
communities is that, if they wish to ship by container, they are obliged to move
their goods by truck, or regular rail car, hundreds of kilometres to the few ports or
major centres. Ironically, hundreds of containers, some empty, can travel by rail
past manufacturing plants every day. Historically, trucking has been very
competitive against rail at distances under 500 kilometres, but the economics of
trucking are changing, along with factors such as the impact trucks have on road
capacity, the environment, and their susceptibility to public acceptance. Railways
have also made investments and modifications so they can offer faster service
with container trains.
Container traffic through the Port of Vancouver is expected to grow by 7% per

year over the next 15 years. Accordingly, it is expected that intermodal growth
will increase by 15–20 % in the next three years (Logistics and Capacity Forum
2004). Expansion of the Vancouver Port is prohibitive due to the high cost of
land, and the province is considering consolidating Vancouver, North Fraser and
Fraser Port Authorities, including Nanaimo and Prince Rupert Port Authority (BC
Progress Board 2004).
Kamloops, because of its location and infrastructure of roads and rail, offers a
unique opportunity for an intermodal system and intermodal container facility.
This facility could offer trans-shipment, storage, or custom facilities for
containerized, break-bulk, and bulk cargo moving by rail. Kamloops could be the
best situated intermodal facility given its location on the Trans-Canada and
Yellowhead highways and with the line-haul efficiency of both Canadian National
(CN) and Canadian Pacific (CP) railways. Kamloops also recognizes the value of
an intermodal container facility to its regional companies in generating profits,
creating value, and improving their regional and international competitiveness.
1.1 Project Objectives
The objective of this project is to assess the opportunity for an intermodal

container facility in Kamloops. This includes a succinct literature review, a small
scale and general survey of intermodal reload facilities in the region, and an
analysis of the potential of developing a container facility in Kamloops. This
research will assist Venture Kamloops in building knowledge around the
particulars and the requirements for an inland intermodal container facility and
the viability of locating such a facility in Kamloops. In addition, the assessment
will address the development and support of these facilities.

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The supporting objectives include the following:
1. An investigation into the different types of intermodal terminals, such as:

• Trailer on a flatcar/Container on a flatcar (TOFC/COFC)
• Truck-Rail Bulk Trans-loading Facilities
• Truck-Rail Reload Facilities
2. Identifying and interviewing the key decision (local and regional) makers from
the operations and marketing departments of CN and CP railways, as well as the
port authorities in Vancouver and the Lower Mainland.
3. Identifying and assessing the suitability of possible intermodal facility locations

within a 50 km radius of Kamloops, including the following considerations:
• Rail requirements
• CN sites versus CP sites
• Land size and availability
4. Identifying what is currently happening and form an understanding of the

transportation logistics in the reload and containerization industry and how the
Kamloops opportunity compares, compliments, or conflicts with it.
5. Interview industry stakeholders such as Weyerhaeuser, Tolko Industries,

Arrow Transportation Systems, and The Mercer Group (Celgar) to determine the
potential volume of lumber and pulp for containerization.
6. From the research conducted, identify the opportunities for Kamloops and
develop recommendations that will move the opportunity forward.

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2.0 Intermodal Facilities
To understand inland container facilities, it is important to understand freight
systems and intermodal terminals in general. In the following section, types of
intermodal facilities and a detailed definition of inland container facilities are
provided.
2.1 Types of Intermodal Facilities

In the past, there were basically two types of cargo: bulk and break-bulk. Bulk
cargo is generally easier to handle and because bulk cargo “flows” it is less
vulnerable to loss and damage. Break-bulk cargo, on the other hand, comes in
all shapes and sizes. Its value per pound is usually much higher than that of bulk
cargo, and the chances of it being damaged increase each time it is handled.
Break-bulk cargo somehow has to be arranged or assembled into unit loads to
facilitate loading and unloading. Break-bulk cargo is usually tied into bundles,
placed in small wooden crates, sacked or bagged, or stacked on flat wooden
platforms or pallets.
Freight terminals can be categorized into three types:
1. Freight traffic generators are places where cargo is produced for shipment
or where cargo is received for subsequent use. Because virtually any place of
business could be regarded as a freight traffic generator, transportation planners
are generally only concerned with major generators. These may be defined as
places that ship or receive such large volumes of freight that they include
extensive facilities for loading, unloading, and storing cargo. These places may
even have their own in-plant railroad, pipeline, or roadway networks connecting
them to the intercity modal networks.
2. Intramodal terminals consist of facilities where cargo changes carriers or

vehicles within the same mode of transportation. Many public warehouses and
distribution centers are served only by trucks and, therefore, are intramodal in
nature. Businesses that operate their own truck fleets often handle the local
pickup and delivery at these facilities, while for-hire trucking companies provide
long-haul shipping to and from these locations.
3. Intermodal freight terminals have equipment and facilities designed to

transfer freight between two or more modes of transportation, either directly or
through intermediate storage. Various kinds of port facilities accommodate the
transfer of freight between water and land modes of transport, including rail,
highway, and pipeline. Port terminals tend to be equipped to handle certain kinds
of commodities such as containers, motor vehicles, break-bulk cargo, dry bulk
commodities, and liquid bulk commodities. A variety of intermodal facilities exist
for exchanging freight between the highway and rail modes. These include trailer-

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on-a-flatcar/container-on-a-flatcar (TOFC/COFC) terminals; motor vehicle loading
and unloading ramps; liquid and dry bulk trans-loading facilities; grain storage
and transfer facilities; lumber, steel, and paper reload centers; and cross-dock or
direct transfer facilities at warehouses and distribution centers. Like intermodal
port facilities, each truck-rail terminal tends to be geared towards a specific type
or category of freight.
The three characteristics that differentiate the types of intermodal terminals are:
• the pairs of modes which the terminal directly or indirectly connects,
• the types of cargo or the specific commodities which the terminal handles,
and
• the types of intermodal transfers for which the terminal is designed (direct,
short-term storage, or long-term storage).
(i) Modes: By employing combinations of the above five distinguishing features,

several common types of intermodal terminals can be found. Between the truck
and rail modes, for example, containerized freight is interchanged at:
• TOFC/COFC terminals;
• automobiles and other finished vehicles at vehicle terminals;
• dry and liquid bulk cargoes at bulk trans-loading facilities;
• break-bulk commodities such as lumber, steel, and paper products at
numerous public warehouses, distribution centers, and other reload
facilities;
• grain is transferred between truck and rail, truck and water, or rail and
water at thousands of grain elevators and other grain-handling facilities;
and
• petroleum products and other liquid bulk commodities such as chemicals,
vegetable oils, and molasses are gathered and distributed by intermodal
at hundreds of tank farms and other liquid bulk terminals and storage
facilities.
(ii) Types of Cargo: One of the differentiating properties of an intermodal

terminal is the kind of cargo it is designed and equipped to handle. The cargo
type, along with the transportation modes involved, defines the function of the
facility and influences the type of transfer equipment required, the storage space
needed, as well as the layout of the terminal. Cargo can be separated into four
main categories:
1. Containerized – This category consists of cargo shipped in various types

and sizes of containers, including domestic dry freight containers,
refrigerated containers, tank containers, and other specialized containers.
Containerization permits the mechanized and safe handling of cargoes of
diverse dimensions that are placed into boxes of standard dimensions. In
this way, goods that might have taken days to be loaded or unloaded from
a ship or train can now be handled in a matter of minutes. The contents of

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a container can range from personal computers to bags of cat litter. Even
automobiles and commodities normally shipped in bulk form, such as
grain, coal, and bentonite clay, are sometimes transported in containers.
About the only kind of freight that cannot be containerized are large
dimensional commodities such as construction equipment and oversized
machinery. Containers come in many sizes; dry freight containers are
either 20 or 40 feet long. The estimated cost of a 20-foot container is
between $2,000 to $3,000 and a 40-foot container can be anywhere
between $3,100 and $4,500.
2. Break-bulk – This category describes non-containerized freight shipped in

bags, barrels, boxes, bundles, crates, drums and pallets. It also includes
cargo handled as separate or individual items such as automobiles,
machinery, steel slabs and coils, logs, pipe sections, and utility poles.
Many types of commodities shipped in break-bulk form could be hauled in
containers
3. Dry bulk – Dry bulk freight consists of loose, granular, or free-flowing dry
cargo that is shipped in bulk rather than in packaged form. Examples of
commodities that are often transported in dry bulk form include coal, grain,
ores, wood chips, fertilizers, plastic pellets, cement, potash, and slag.
Most of these commodities could be containerized for transport, and they
often are when shipped in small quantities. However, these commodities
usually move in such large volumes that, in most cases, it is more efficient
and much easier to transfer them between modes when they are in bulk
form.
4. Liquid bulk – Liquid bulk freight is liquid cargo shipped in bulk rather than
in containers. Crude oil, agricultural, and industrial liquid chemicals are
commonly shipped in large volumes in liquid bulk form. These
commodities may be moved in drums and tank containers as either break-
bulk or containerized freight. Like dry bulk, these commodities can be
transferred between modes more easily and efficiently when they are
shipped in large volumes in bulk form.
(iii) Types of Transfer: Freight doesn’t generally get transferred directly from
one mode of transportation to another; containers are usually stacked on the
ground before being hauled away. Most intermodal terminals provide equipment
for direct transfer, as well as facilities for storage.
The inter-relationships between the types of carriers in intermodal systems have

become so integrated that changes in one mode can have an impact on other
modes. The action of moving cargo from one mode to another reduces
efficiency, which is very important to intermodal operations. Cargo needs to move
smoothly and quickly and with as few impediments as possible. Shippers still like
intermodal transport, despite its limitations.

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There are three main types of transfer at intermodal facilities.
1. Direct transfer – Examples include containers lifted off a ship and placed
directly on double-stack railcars and trucks dumping sand or gravel
directly into a barge.
2. Short-term storage transfer – In this case, cargo arrives on the incoming
mode, is unloaded and stored for a relatively short period of time on a
platform or loading dock. It is then loaded into and hauled away by the
outgoing mode.
3. Long-term storage transfer – Two types of long-term storage transfer
occur. 1) Consolidation: the incoming cargo arrives by a mode whose
cargo-carrying capacity is lower than that of the outgoing mode; 2)
Distribution: the arriving mode is of relatively higher capacity than the
departing mode or modes. The cargo is unloaded into a warehouse,
storage tank, silo, or other storage facility and gradually distributed within
the locality or larger region.
2.2 Common Types of Intermodal Terminals

Intermodal freight terminals can be grouped according to the properties, some of
which are discussed above. Since terminals specialize in the types of cargo or
kinds of commodities, which they handle, the number of possible groupings is
quite large. The following outlines several common types of intermodal terminals:
1. Trailer-on-flatcar/Container-on-flatcar Terminals
Trailer-on-flatcar/container-on-flatcar (TOFC/COFC) terminals are places where
either containers, highway trailers, or both are transferred between trucks and
railroads. The containers and trailers may be directly transferred or they may be
set on the ground for a short period before being loaded and hauled away.
Outside of a port facility, this type of terminal is more closely associated with the
notion of intermodal facilities.
The nature of TOFC/COFC freight greatly influences the location of TOFC/COFC

facilities since TOFC/COFC freight is usually more time sensitive than other kinds
of rail freight. It often moves on dedicated and expedited intermodal trains rather
than on regular trains. Intermodal trains have the highest priority and are
generally among the fastest trains on a railroad's system. As a result,
TOFC/COFC facilities tend to be located adjacent to mainlines rather than on
secondary branch lines or industrial spurs.
2. Auto Terminals
These terminals are where finished vehicles such as automobiles, light trucks,
jeeps, and vans are transferred between different modes of transportation.

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3. Truck-Rail Bulk Trans-loading Facilities
Bulk trans-loading facilities provide direct transfer of dry and liquid bulk cargo
between rail and highway vehicles. The term trans-load or reload sometimes
refers to the process of physically transferring non-containerized material from
one mode of transportation to another.
TOFC/COFC terminals, which are medium to large facilities, are attached to

mainline tracks while truck-rail bulk trans-loading facilities tend to be widely
scattered. They can be found virtually anywhere there is available siding space,
as well as space for trucks and transfer equipment, including rail yards, team
tracks, secondary branch lines, and industrial spurs. Although the railroads own
the tracks and usually supply the railcars, they do not necessarily own the trans-
loading equipment or control trans-loading operations.
4. Truck-Rail Reload Facilities

Reload facilities are warehouses, distribution centers, and other locations where
break-bulk commodities are moved from truck to rail. Trucks bring the commodity
to the terminal for consolidation and reloading into railcars. The cargo may be
transferred between truck and rail using forklifts, cranes, or other handling
equipment, or it may be placed in short-term storage.
The three types of reload facilities are:

• an open yard generally used for trans-loading logs and pulpwood;
• a specialized warehouse or distribution center whose primary function is to
transfer a specific type of commodity such as lumber, auto parts, steel
slabs or coils, or paper products between truck and rail; and
• a regular public warehouse or distribution center with multiple functions,
one of which is to reload a particular commodity from truck to rail or rail to
truck.
5. Liquid Bulk Terminals

Liquid commodities such as chemicals, crude oil, vegetable oils, sugars, and
fertilizers are often shipped in large bulk volumes. These commodities are
consolidated and distributed from liquid bulk terminals.
6. Grain Terminals
Grain terminals are facilities where one or more type of grain is either stored or
where grain is directly transferred between different modes of transportation.
Most grain terminals are devoted solely to the storage and trans-shipment of this
commodity, although a few also handle other dry bulk cargo such as feeds,
agricultural seeds, meal, and flour and other products made from grain.
7. Waterway Intermodal Terminals

These terminals transfer cargo between land and water modes of transportation.
These terminals are located along the Atlantic, Pacific, and Gulf coasts; the Great
Lakes; and navigable inland rivers, lakes, and canals.

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2.3 Definition of an Inland Container Facility
An inland container facility is a facility that offers services for handling and
temporary storage of import/export laden and empty containers. Trans-shipment
of cargo can also take place at such stations and includes stuffing and de-stuffing
of containers for consolidation or segregation of cargo. Generally, these facilities
are where containers are aggregated for onward movement to or from ports and
are generally located outside the ports’ towns.
An inland container facility can range from a simple and relatively inexpensive
loading facility using circus ramps, to a high-cost operation involving gantry or
overhead cranes that allow for fast train loading and off-loading. The cost of a
facility is determined by the equipment needed, “trackage,” amount of land, and
labour associated with the size and volume of the facility.
The establishment of these facilities remote from the port avoids the need for
empty containers to be returned to the port for processing, which reduces costs
and traffic congestion at the port. These depots also improve the efficiency of
road and rail supply chains.
Benefits of an inland container facility include the following:

i. Lower door-to-door freight rates
ii. Increased cargo safety
iii. Increased efficient circulation of goods and less congestion at the
seaports
iv. Reduced intermediate service costs in terms of handling of goods
v. Optimal use of road and rail transport and better capacity utilization
vi. Reduced heavy vehicle use on the highway
Operational Activities of an inland container facility include the following:

i. Receipt and dispatch of containerized cargo
ii. Loading and unloading of containers to and from train
iii. Stuffing/de-stuffing, aggregation/de-aggregation of containers
iv. Customs clearance (possible)
v. Gate checks and security
vi. Storage of cargo and containers
vii. Container upgrades and minor repairs
viii. Disposal of unclaimed/un-cleared cargo
ix. Storage of empty containers
x. Information flow and communication
xi. Record keeping and data storage
xii. Billing and cash collection
Operating Areas:

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i. Siding: The place where containers are loaded on and off the rail cars.
Arrival and dispatch of trains, etc. also takes place at this location
ii. Container Yard: The place where loaded and empty containers are
stacked prior to their dispatch.
iii. Operational Area: This area is where containers are stuffed or de-stuffed
and aggregation or segregation of cargo takes place.
iv. Customs examination bay: The designated place where the containers
are placed for examination by Customs (possible).
For the inland container facility to be successful, a prime criterion is that it reduce
total transport costs, since there is the possibility of a marginal increase in total
handling cost per box on origin to destination basis. A feasibility study must be
done prior to setting up an inland container facility and researchers should
conduct discussions with exporters, shipping lines (since they control most of the
containers), freight forwarders, port authorities, etc.
The traffic flows between inland container facilities and ports need to be analyzed
with reference to commodities, directional split (imports or exports), proportion of
less-than-full container load and full container load, forecast of future growth,
modes of transport available, possible reduction in tonne per kilometre, and box
per kilometre cost.
The facility needs to be economically viable for the owners and attractive to the
users. It must also satisfy railway requirements for train load movements and
improve seaport operations and efficiencies. In other parts of the world,
successfully operating inland container facilities have an average of 6,000
twenty-foot equivalent units (TEUs) per year flow through their facility and are
located on a minimum of three acres.
Design and Layout of Inland Container Facilities:

The key to a good layout is the smooth flow of containers, cargo, and vehicles
through the yard. The design should take into account the initial volume of
business, estimated volume in 10 years, the type of facilities exporters require,
and it should be adaptable for changing circumstances. The design should
encompass features like rail sidings, container yard, gate house, security
features, fencing, roads, pavement, office building, and public amenities.
Equipment required for loading and unloading containers onto rail cars and truck
chassis include large land-based container gantry cranes, straddle cranes, side-
loaders, and reach-stackers. Straddle cranes can operate on fixed rails or be
rubber tired and can span one or more rail tracks, whereas side-loaders and
reach-stackers are much smaller and resemble oversized forklifts.

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3.0 Literature and Survey Findings
A preliminary and succinct literature review was carried out to learn of the
experience of other communities that have established, or are in the process of
establishing, an inland intermodal container facility. The relevant findings are as
follows:
• The growth of container trades and the limits on waterfront land mean that
ports have had to design their facilities and operations to focus on
throughput, which is the fast loading and unloading of ships and the fast
movement of containers on and off the terminal. Stuffing and de-stuffing
containers has moved off dock and rail-loading facilities are no longer
considered adjacent to the port cranes. The storage of empty containers is
held to a minimum. Where should such activities go and what factors
influence their location? In general the answer is inland, where land
values are less and where locations for the storage of empty containers
close to importers and exporters are possible. (Heaver 2004)
• “Global and domestic commodities are increasingly relying on

containerization. The containerized supply chain is built around seamless,
intermodal transportation, featuring high speed, high efficiency, and high
responsive customer service.” (Bonderud 1988)
• “As the inland port at Front Royal demonstrates, it is not necessary that
such facilities be located in urban areas with large local populations. In
fact, rural locations may offer important advantages. First, the lack of local
roadway congestion reduces overall transportation times and cost. In
addition, cost attractive land is often available, making initial construction
and future expansion highly attractive. While these inland ports improve
transportation efficiencies, they also serve as economic magnets, drawing
commerce to the surrounding region.” (Bonderud 1988)
• “Essential characteristics for all prospective Inland Container Terminals

include rail access and rail intermodal yard capability on-site or nearby,
good road and highway access, sufficient land at a reasonable cost and a
defined target market and targeted customers or tenants.” (VPA 2006)
• “Trains are two to three times less polluting than trucks handling
equivalent loads. It takes approximately 280 trucks to transport the same
amount of cargo carried by one intermodal train.” (VICA 2006)
• “Inland intermodal facilities will ensure that Vancouver Port will remain
economically competitive and efficient for decades to come with other
ports such as Seattle, Tacoma, Portland, Oakland, Long Beach and Los
Angeles.” (Peter Xotta, In interview, 2006)

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• “Historically, each rail company has owned its own rail yards. That is
mostly true for intermodal rail yard facilities as well, but other models may
make community or even regional ownership a better value for the region
and the industries served.” (West et al. 2004)
• “Projects such as intermodal facilities are usually financed through some

combination of general revenue and capital budgeting, with the user’s fees
going to finance the debit. User fees can be collected on the basis of
cargo weight or the number of cargo units processed through the facility.”
(Taggart and Barrett 1992)
• “Some shippers prefer to load containers at points of production to reduce

the costs due to the amount of handling and to maintain product quality.
The impediment to source loading is the availability of empty containers.”
(Quorum Corporation 2006)
• “The Pacific and European markets demand containerization of products.

The reason prairie grain traders have been continuously hindered to have
their products containerized is due to the difficulty of accessing empty
containers, the speed at which they are moved to port for stuffing, the cost
impact of the regulatory environment in which they work, the additional
costs associated in terminal hours and the freight rates and ancillary
charges that are unique to container movement.” (Quorum Corporation
2006)
• Container stuffing facilities congregate closer to ports because of the

availability of empty containers. (VPA 2006)
• “The rail industry accounts for only 4% of the transportation sector

greenhouse gases emissions despite handling more than half of all the
tonne-kilometres of freight moved in Canada. Therefore future
infrastructure investments ought to take into account the demonstrated
benefits of rail and intermodal operations as they relate to air quality and
global warming.” (Jones and Rowat 2003)
• “Intermodal transportation is clearly a potential solution to the public policy

problem of too many trucks on the road. It affords the possibility of making
greater use of existing rail capacity for goods movement as an alternative
to costly expansion of congested highways.” (Jones and Rowat 2003)
• The key impacts of intermodal transportation are: 1) an increase in the

volume of transportation in an existing transportation network; 2) a
reduction in logistic costs of current operation; 3) the economies of scale
associated with transportation network expansion; and 4) better
accessibility to import and export markets. (Yevdokimov 2002)

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Survey Findings
To understand the potential for locating an inland container facility in Kamloops, a

series of survey and interviews were conducted. The purpose of the survey and
interviews were to understand current operations, future expansion plans, how an
inland container facility might feature into their expansion plans, and how to
establish an intermodal facility. The objective was to gain understanding of
container logistics and, specifically, to understand stakeholder views on locating
an inland container facility in Kamloops.
Vancouver Port Authority

• Vancouver Port Authority (VPA) is in a long-term process of dealing with
an increasing global trend in containerization of cargo and
accommodating the increased trade between North America and Asia.
Therefore, the VPA is concentrating on a terminal expansion plan, which
consists of doubling the capacity of Centerm Container Terminals to
783,000 TEUs and upgrading at Vanterm Container Terminal to increase
capacity to 600,000 TEUs. Delta Port is expanding by adding another
berth and increasing container handling facilities from 900,000 TEUs to
3.2 million TEUs. This will be followed by the development of a new three-
berth container terminal known as Terminal 2. The expansion of the three
terminals will be accompanied by improved on-dock rail facilities,
modification of exit gates to alleviate congestion and minimize truck line-
ups, and new equipment and expansion of intermodal rail yards.
• Ports want to increase container capacity; they do not want to store empty
containers. The money is in the movement of the containers, not in the
storage of the containers. They want to achieve 1.5 days of turnaround
time.
• The Kamloops facility should offer increased velocity in delivery of cargo

and offer ways of decreasing costs to shippers.
• The VPA also examined the potential investment in inland container

terminals and produced a final report in 2006 titled “Inland Container
Terminals Strategic Assessment.” For VPA, the purpose of inland
terminals is to support marine terminals.
• “Inland container terminals development appears to be one of the few

remaining ways by which many container ports can expand their
throughput capacity.” (VPA Inland Container Terminals Strategic
Assessment 2006).

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Coast 2000 Terminals, Kevin Ouellette
Coast 2000 is located on 30 acres in Richmond, BC and is anchor tenant to a 90-
acre distribution hub. It has a 19-acre paved container yard and offers on-site
container stuffing. They load 25,000 containers and store up to 1 million empty
containers per year.
• Kamloops will have to work out logistical issues, such as stopping the
trains, accessing empty containers, and finding sufficient volume to load
into containers.
• Steamship lines want to keep the empties in Asia, not in Canada, because
of costs. For example steamship lines only make $600 on a backhaul
container from Canada to Asia while they make $2,000 on a full container
from Asia to Canada.
• Transportation prices for pulp and lumber are driven by trade markets.
Therefore, shipping to Asia is expensive and varies according to markets,
while shipping from Asia to Canada remains consistent.
• Ninety percent of pulp and lumber are going to Asian markets, and 10% to
the US. Future growth in export commodities will be in fuel, oil, and wood
pellets.
• There are 17 different steamship lines. Railroads are only carriers;

therefore, steamship lines are the key players in the movement of all
goods.
Inland Container Facility, Richmond, PQ
In June of 2006, an inland container terminal was opened in Richmond, PQ. The
project was under development for six years and required CN Rail support, local
government buy-in, and a group of dedicated individuals. The company has a
five-year lease and operates on behalf of the city. The city has assumed all the
risk.
The facility is uniquely positioned on the main CN route from Boston to Montreal.
Since Boston is a net importer of containers, there are more empties located
there than can be filled (10 full containers arrive, and only eight are filled for
export). As a result, the empty containers are repositioned to Montreal and pass
directly through Richmond.
The facility has grown from its original plans. In addition to a 40,000 square foot
warehouse with storage for four rail cars inside, they have a 12,800 square foot
cross-docking warehouse, which can hold two rail cars. Interior rail car storage
was deemed necessary due to the severity of the winters. They have a truck-

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mobile, which they use to unload and reload the containers onto rail cars or
trucks, and have added 2.5 kms of track.
The facility in located on 5.3 acres and can expand to 8 acres. It can handle up to
12 containers per day, and can house two three-pack container cars on each of
its three rail sidings. Empty containers from Boston are dropped off at the yard,
and any full containers are picked up and moved to Montreal. The facility
currently has between one and 10 empty containers dropped off per day. Sixty
percent of their business is container stuffing, while the remaining forty percent is
reloading between truck and rail.
The operators believe there are two core keys to success: 1) Be on a line from an
unbalanced export container market, and 2) Have enough track and storage
space. Apparently, at least four other Eastern Canadian cities, including Moncton
and Fredericton, are looking at putting in small intermodal terminals, but M. Julien
did not think these cities have Richmond’s advantages.
Customers include Armstrong Pellets from BC, which ships product to Eastern
Canada in a box car where it often suffers considerable package breakage.
Because of this breakage, the Richmond facility is in the process of putting in a
bagging line to repackage damaged product. This value-added facility has come
about as a result of the facility first being used as a trans-load (box car to truck)
facility for Armstrong Pellets. Richmond has also been approached by a company
to put in a plastic pellet packaging line, and are working through the details on
delivery methods (suction or gravity). Other products handled by the facility
include lumber and pulp, and they are in the process of negotiating with Domtar
to handle the bulk of their pulp reload and stuffing.
M. Julien is prepared to share their initial business plan, but cautions it is not
what they ended up implementing. Infrastructure Canada provided information on
the initial facility development, which included the 40,000 square foot warehouse,
2.5 kms of new track, office and out-buildings, the truck-mobile, and training:
Project Costs
Total Eligible Costs ($): 1,560,000

Contribution Breakdown:
Federal Share ($): 520,000
Provincial Share ($): 200,000
Applicant Share ($): 840,000
Project Timelines
Actual Start Date: 2003-01-01

Actual End Date: 2003-12-01

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Timber Trax, Kelowna, BC
Timber Trax is a privately owned lumber truck-to-rail reload facility at the north
end of Kelowna. The company is on the CPR but they deal with CN for car
delivery. Mr. Hall has considerable experience in the trucking and container
stuffing industry, and would be willing to participate in a Kamloops discussion
group regarding the development of an inland container facility. He has already
had several discussions with Arrow Transport and is aware of, and supports, their
initiatives.
Timber Trax estimates that four B-trains of lumber is equivalent to nine 40-foot
containers and the cost to stuff containers in Vancouver is around $250.

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4.0 Current Container Logistics
Over the past 15 years, there has been considerable growth in international
trade, especially a significant growth in container traffic. In 2005, the Vancouver
Port Authority reported a 6% increase to 1.77 million TEUs (Twenty-foot
Equivalent Units) over the previous year in container shipment (VPA 2005). Ten
to 15 years ago, empty containers were in surplus and many Western Canadian
shippers gained access to these empty containers with relative ease. As a result,
Canadian manufacturers could access new markets with strong growth potential.
During this period of containerization growth, the supply of empty containers
became heavily subscribed to, and those that were left were concentrated in the
ports of Vancouver and Montreal.
North America is a net importer of finished goods, which are coming in containers
from Europe and Asia. As a result, Canadians commodities producers such as
lumber, pulp, and grain have taken advantages of the availability of “backhaul”
empty containers to ship their products to overseas export markets.
4.1 Container Logistics - Vancouver
Full Containers Logistics
Imported commodities arrive by ship and are placed on the ground at the ports.
Direct ship-to-rail and direct ship-to-truck loadings are virtually impossible
because the unloading order from the ship does not match the optimal order
loading for the train or waiting trucks. Within the port region, containers are
distributed by truck to either their final destination or to a redistribution facility.
Outside the region, the imports are typically delivered by truck over short and
medium distances, while rail lines move the majority of imports over longer
distances. There is limited de-stuffing at the ports and as a result, most of the de-
stuffing occurs at separate facilities in Richmond, Burnaby, Coquitlam, and
Surrey. Land at these locations is less expensive and they are proximal to the
ports of Vancouver and Delta, CN and CP intermodal yards, as well as final
consumer markets.
Empty Containers Logistics
After the containers have been emptied of imported goods, the containers are
typically sent to a location to be cleaned, repaired, and stored until pick up for
refilling. The empty container storage yards are best located near ports and
intermodal rail yards, as well as stuffing and de-stuffing locations. The storage
yards represent one corner on a distribution triangle; the other two points are port
terminals and stuffing/de-stuffing facilities. For the most part, empty containers
are transported by truck to stuffing facilities, which can be 10 miles or more away.

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Full containers are then moved by truck to the ports to be loaded on appropriate
shipping lines.
Variations to the movement of empty and full containers exist, depending on

services offered at the port, warehouse facilities, as well as stuffing and de-
stuffing sites.
Outbound Pulp and Lumber Logistics
Over the past four years, the volume of break-bulk forest products from BC,
including lumber and pulp, have declined due to an overall reduction in the total
exports of these products and the increased use of containers for shipping. The
products that are most containerized are forest products and the main trading
partners are China, Japan, and Taiwan. However, volumes still remain high and
the largest commodity volume that is containerized in the Lower Mainland for
exports through the Port of Vancouver is wood pulp.
The largest producers of pulp in BC send their pulp in bales by box car to storage
and warehouse facilities in the Lower Mainland. Unlike pulp, most of the lumber
producers in BC truck their product to the Lower Mainland. In both cases, the
product is warehoused until a customer order is placed and product lines are
consolidated based on order particulars. Once the order is placed, the
warehouse facility dispatches a truck to the shipping line yard to pick up one of
their empty containers. This empty container is then moved back to the
warehouse facility where the order is consolidated and the container is stuffed.
Once the container is filled, the truck then returns to the ship yard for drop-off.
Variations on this scenario can occur if the shipping line’s empty containers are
stored at a site other than the ship yard (these are empty container storage
yards), the container is damaged, or a third party operates the trucking.
Since different mills owned by the same company can produce different product
lines, a central order consolidation point is important. These storage and
warehouse facilities are now located close to the ports to quickly meet customer
demand and ease logistical decision making. This presents a challenge to a
potential intermodal terminal in Kamloops; there is a mindset that closer to the
ports is better because of logistical economics and ease and customer timing of
orders. Also, outside the Lower Mainland, value-added services, such as access
to empty containers, repositioning empty containers, container repair and
maintenance, warehousing, and container stuffing/de-stuffing, are currently not
available.

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5.0 Kamloops Role in Intermodal Strategy
The Vancouver Port Authority is in the process of expanding all their holdings to
capture their share of trans-Pacific container trade over the next two decades. All
port terminals in the Lower Mainland are facing pressures to accommodate the
increase in container trade and improve container handling capacities. In the
short term, the ports can use existing terminals to handle much of the throughput
by adding berths, intermodal yard capacities, new equipment related to loading
and unloading of the ships, and expanding container handling facilities in the
Lower Mainland. This also represents an opportunity for inland communities to
offer services that are not part of a deep sea port’s core services. Kamloops is
uniquely positioned to play an important role in the transportation of products to
overseas export market. It offers a unique opportunity for an intermodal facility
because of its central location to BC’s saw mills, pulp mills, and other value-
added wood products and because it is proximal to the fruit producers in the
Okanagan. Kamloops also has both CN and CP main rail lines and the Trans
Canada highway.
5.1 Rail Service in Kamloops
Both CN and CP mainlines move through Kamloops and both switch their crews
in Kamloops. See Table 1 for location and contact information for local rail offices
in Kamloops. The crew change is important because it means the trains,
including the intermodal trains, are stopping in Kamloops. CN’s rail line runs from
Jasper, Alberta through Kamloops on the east side of the North Thompson River
and crosses over at Halston on the north side of the South Thompson River and
continues north of Kamloops Lake to Ashcroft. A branch line operated by
Okanagan Railways runs south of Halston towards Kelowna.
CP Rail moves from Calgary, Alberta through Revelstoke, BC, runs on the south
side of the South Thompson River, passes through downtown Kamloops, and
continues on the south side of Kamloops Lake to Ashcroft. It is possible to switch
cars from the CN line to the CP line just west of 10th Avenue in downtown
Kamloops. This ability to switch between the two rail lines increases the flexibility
of the transportation network and the likelihood of products originating in
Kamloops to move by rail.

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Table 1 - Local Rail Offices and Contacts
Rail Office Address Key Contact Person Contact Information
and Position
CN 309 CN Road Ed Bruzzese, General Tel: 250-828-6404
Kamloops, BC Superintendent Email: Ed.bruzzese@cn.ca
V2H 1K3 Operations
CP 95 Third Avenue Dan Havorka, Tel: 250-828-7005
Kamloops, BC Operations Manager Email: dan_havorka@cpr.ca
V2C 3L9
5.1.1 CN Operations in Kamloops
CN offers coast-to coast service across North America with 20 intermodal

terminals placed in major industrial centres in Canada, New England, and the
mid-west US. Through partner railways, CN can also provide services to Mexico.
In 2001, CN opened a new intermodal terminal in Edmonton, Alberta. This is a
$23 million facility developed on 370 acres that handles 15,000 containers and
trailers per year, with the capacity to grow to handle 225,000 containers. CN also
expanded and consolidated their Montreal terminal in 2002, which allowed 30%
more intermodal traffic handling capacity. Currently, CN is developing an
intermodal container terminal in Prince Rupert in partnership with Maher, an
experienced American terminal operating company. Together, they will convert
the current break-bulk terminal to a 500,000 TEUs container terminal. CN is also
expanding its operation in Prince George where trans-loading of lumber is the
primary operation, but may expand into containerization of lumber for export from
the Port of Prince Rupert.
CN’s operation in Kamloops has sufficient sidings and land to accommodate up

to 5 to 10, 5-pack container cars per day, but they may not be able to
accommodate storage, warehousing, and consolidation. These activities will have
to occur on adjacent land parcels. CN indicated that they would provide switching
service to an inland container handling facility if a strong business case is made
and the facility is managed by a third party who would be responsible for all
operations at the facility including waybills, container maintenance and repair,
warehousing, and container stuffing. Up until January 2006, CN switched out and
reconfigured four intermodal trains per day coming from Delta Port through
Kamloops. Since then, through a combination of better planning and
reconfiguring intermodal operations, switching activity takes place in Jasper and
Edmonton.
Locally CN picks up 50 freight rail cars per day from the Kamloops area. There
are 28 to 36 trains passing through Kamloops’ CN rail yard everyday of which
eight are intermodal trains up to 12,000 feet in length. CN’s main customers in

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the Kamloops area include the lumber reload operated by Tolko south of Halston,
and Tolko at Heffley Creek.
5.1.2 Canadian Pacific Operations

CPR operates a network of 23 intermodal terminals in Canada and US. It
provides rail services to overseas container shipping lines arriving at the
Vancouver and Montreal ports. It is the only railway that offers direct service from
the Port of Vancouver to Chicago over its own tracks. CP also implemented an
“expressway intermodal transportation system,” which is designed to service the
short-haul markets. CP has signed intermodal service agreements with Canadian
Tire, Consolidated Fastfare, Hudson’s Bay Company, Sears and DaimlerChrysler
Canada, and have constructed major distribution warehouse facilities adjacent to
CP’s intermodal terminals for shipping and distribution across Canada and US.
The CP Rail line services the southern part of Kamloops. East of town, CP has a
siding at the Arrow Lumber reload centre and a spur line to MolyCop. To the west
of town, CP’s main clients include both the Weyerhaeuser sawmill and pulp mill.
The number of CP trains that pass through Kamloops is 36 per day, of which 12
are intermodal trains. The maximum length of CP intermodal trains is 7,000 feet,
which is approximately 250 40-foot containers. CP’s maximum line capacity is
only 40 trains per day with the given line capabilities. The largest product
volumes that move through Kamloops via CP are wood pulp and lumber destined
for the US and for export through the Port of Vancouver.
A box car loaded at Weyerhaeuser in Kamloops takes three days to reach the
docks in Vancouver. Forest products such as lumber, pulp, and paper are the
main product lines that are transported from Kamloops. CPR’s domestic
intermodal freight is serviced through door-to-door and directly to the retailer.
5.2 Intermodal Industry Stakeholders
The Arrow and Tolko reload centres take lumber from truck and load rail cars in
Kamloops. These rail cars are destined for domestic (Canadian and US) markets.
An intermodal container facility in Kamloops could focus on exports going
through Ports in Western Canada; the existing reload operations are
complementary, not competitive, and will help provide a comprehensive logistical
service to local industry. These reload centres are also closely linked to
businesses involved in trucking product to the coast for export in containers.
They have expressed interest in an inland container facility in Kamloops.
Arrow Reload
Arrow is a trucking and transportation company providing transportation solutions

for a broad range of customers and hauling a wide variety of products. Arrow is

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an independent company specializing in lumber and wood chips. In 1988 they
partnered with CP Railway to operate a truck-to-rail reload facility in Kamloops.
Originally established for only truck-to-rail services, this operation expanded to
provide a wide range of value-added services including: package cutting, custom
trimming, bar-coding, package splitting, and grading. Using the Kamloops
operation as a template, Arrow has worked with CP to establish new reloads
across Canada and into the United States. Arrow has been successful in
handling many products by truck and rail, and has been able to expand their
reloads from handling only lumber products to other products such as mining
materials, steel rods, and granite blocks. CP and Arrow have a seamless
operation and the Arrow reload centre in Kamloops is actually a marketing and
restacking arm for the railway.
Arrow loads and ships 300 rail cars per month, which is equivalent to 110,000
board feet of lumber per car. All of these rail cars are destined to North American
markets with 80% going through Chicago and Minneapolis. The westbound, or
lumber destined to overseas markets, are trucked by Super Bs to container
stuffing facilities in the Lower Mainland. On average, Arrow sends seven Super-
Bs per day from Kamloops; it takes two Super-Bs to fill three containers. Arrow
has looked at container stuffing facilities in Kamloops, and is again in the process
of developing a business case. Arrow estimates that there are 180,000 empty
containers passing through Kamloops every year. Arrow reload customers
include Weyerhaeuser sawmill, Canoe, Adams Lake Lumber, Canfor, and
Highland Valley Copper.
Arrow Reload Centre sends 4,000 cars per year eastbound and none go to the
coast. According to CP, Weyerhaeuser sends about 7,000 cars per year, again
mostly eastbound, except the pulp, which is 90% westbound. Ninety-eight
percent of westbound pulp goes by rail; the remaining 2% goes by truck.
Westbound lumber (i.e., going for export) is shipped to the coast by truck
because of good backhaul rates, and efficient timelines.
Kamloops Reload (Tolko)
Kamloops Reload is operated by Tolko and is located on Athabasca Street W on

land leased from the Kamloops Indian Band. Kamloops Reload moves 1 million
board feet per day of lumber or 10 rail cars per day, 90% of which goes to the US
market. Most of their volume is moved by CN, however, they can easily switch to
CP for a switch charge. The site is 13 acres, of which 7.5 acres are paved. They
have an option to use 8 to 9 adjacent acres. At one time, Tolko studied the
possibililty of putting in a container stuffing facility at Louis Creek. However, the
costs were high for Tolko to operate it independently and it was determined in-
feasible. Research for this study revealed that plywood volume from Hefley
Creek Tolko operations are containerized at the Hefley mill. Further research is
required as to the exact volumes, the destination of the products and the mode of
transportation.

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Weyerhaeuser Lumber
Weyerhaeuser moves a lot of the lumber it produces through the Arrow Reload
Centre to North American markets. Lumber produced in Kamloops, as well as the
eight Weyerhaeuser mills in Canada, which is destined for overseas markets,
passes through Kamloops on trucks to stuffing and consolidation facilities in the
Lower Mainland and is loaded on ships at Vanterm, Centerm, and Delta Port.
Ten million board feet of lumber is exported per year through Vancouver.
Containerization of lumber products for Weyerhaeuser is mostly done by a
company called S & R in Langley, BC.
The challenges of containerizing lumber products in Kamloops are as follows:
• Truck backhaul issues: Weyerhaeuser gets good trucking rates to the

Lower Mainland because the trucking company has a backhaul from the
Lower Mainland.
• Weyerhaeuser is concerned that there will be additional days to get their

products to the coast by containers on rail versus by truck.
• The eight Weyerhaeuser mills produce different lumber products, which

are all shipped and consolidated at warehouses in Vancouver. Customer
orders vary, and each customer order has to be consolidated from
different product lines. Hence, a large inventory of products lines must be
kept to fill different and varied orders. When asked what their main use
would be for an intermodal facility in Kamloops, they replied that due to
above mentioned reasons the best option would be for such a facility to
concentrate on speciality products from their mill in Okanagan Falls. The
estimated volume from Okanagan Falls for export is 10 million board feet
per year which is equivalent to 340, 40-foot containers.
Weyerhaeuser Pulp Mill
Eighty percent of pulp products produced at the Kamloops mill are shipped by rail
cars to Vancouver for overseas markets. The Weyerhaeuser plant in Kamloops
has two mills. Mill “A” produces 4 to 5 car loads per day while Mill “B” produces
12 to 14 cars per day. In total, the two mills produce 1350 tons per day which are
transported to Vancouver. Adjacent to their mill, they have a 10,000 tonne
warehouse capacity which is used if there are product quality problems or there
are not enough rail cars. Weyerhaeuser has an agreement with CP that no more
than 10% of product is allowed to move by truck; however, only 3 to 5% of pulp
products are shipped by truck. CP provides three switches per day and an
average of nine cars per switch. Not all of the pulp is containerized; 57% of pulp

Venture Kamloops
in the form of break-bulk is shipped to Japan and Europe while 43% is
containerized for markets to China and Malaysia.
The Weyerhaeuser pulp mill has looked at a container stuffing facility at their mill,
but faces a number of logistical challenges.
• One container holds 25 tons of pulp and so far this year (September)
3,000 containers have been used. Therefore, a lot of land and warehouse
space is required and they do not have an adequate amount near their
mill.
• There is an argument to be made for shipping by rail car versus container

from Kamloops. Rail cars can hold 85 tons, while containers can only hold
25 tons. The cost of stuffing and storage in the Lower Mainland, however,
may offset these economics of volume capacities.
• As with lumber, all pulp products from different mills are consolidated in a
central Vancouver warehouse where all customer orders are placed and
built with different product lines and particulars.
• Weyerhaeuser does not have a balanced and consistent sale schedule;

most sales occur in the last 1.5 weeks of the month. This exacerbates the
need for storage and warehousing.
• Weyerhaeuser is also concerned that the length of time to send product by

rail (which currently takes three days by rail car) and containerized product
from Kamloops will take longer than their notification of the ship’s sailing
time. This is a concern to them in that they may not know well enough in
advance which customer’s order and container are due on a particular
ship.
Mercer International
In April 2006, Mercer International Group presented the opportunity of a

Kamloops Reload Project to Venture Kamloops. Mercer is a pulp and paper
manufacturing company with two production facilities in Europe and one mill in
Castlegar, BC. The three pulp mills have combined pulp production of 1.3 million
tons per year. It is in Mercer’s interest that the Celgar mill has a pulp reload
facility in Kamloops for the transportation efficiencies and to eliminate the risk
port trucking disruptions. Celgarproduces pulp volumes of 440,000 tons, which is
expected to grow to 475,000 tons by 2007. The plans for this facility would
include a large warehouse, a large outdoor container storage facility, rail and
trucking docks along the warehouse, a rail spur into the container yard, and a
specialized area for cross dock loading. Mercer sees this facility initially handling
570,000 tons of pulp, or 22,000 containers per year. This calculates into
approximately 92 containers per day.

Venture Kamloops
This facility would not only handle pulp from Celgar, but would also receive
shipments of pulp from other mills, as well as other forest product producers in
the region. Mercer believes that Kamloops is an ideal location for such an
operation since both CP and CN rails share tracks through Kamloops, all empty
containers travelling form Eastern Canada past through Kamloops, and a large
portion of Western Canadian pulp production passes through Kamloops.

Venture Kamloops
6.0 Intermodal Container Facility Locations in Kamloops
There are nine possible sites within the boundaries of the City of Kamloops to
develop some type of intermodal container facility (See map). The location goals
of most intermodal container facilities includes, but are not limited to sites that:
• offer the lowest possible transportation costs with easy road access;
• have direct rail service or are in close proximity to rail that has the
capability of access by spur;
• have proximity to existing and new customers, and;
• can access suppliers and vendors.
West and Kawamura (2004) indicated that questions of location for intermodal
facilities need much wider consideration, including their relationship not only to
the main line rails, but to the local community, the city and region, warehousing
facilities, specific industries, and general industrial concentrations of the region,
and other modes of freight such as ports, airports, and the highways. Keeping
these location criteria in mind, there are four sites outside of the Kamloops
border, but within a 50 km radius of the city, that may be suitable for an
intermodal facility or intermodal container facility.
One location is in Savona at the Ainsworth Lumber site, situated on CP line..

The second suitable location is currently a fuel access station near Pritchard on
the CP rail line. However, this site does have some constraints, including private
land ownership, its location within the agricultural land reserve (ALR), and the
possibility of local opposition. A third possible site is located on the north end of
Monte Lake near Paxton Forest Products. This privately owned land is on tracks
owned by CN, is operated by Okanagan Railways, and is partially designated
ALR. Louis Creek is the fourth site with the most potential outside of Kamloops.
This is the original Tolko sawmill which was destroyed by forest fires in 2003.
Since then, the site has been cleaned and redeveloped as a 47-hectare
industrial park. CN’s main line passes through the area, but there is no siding to
service the industrial park.
Of the sites identified within Kamloops, two of them are large enough to
accommodate virtually any type of intermodal container facility now and in the
future. These sites are located north and south of Halston Rd on CN Rail. CN has
clear title over most of the land that its track covers, and the single yard site is
leased from the Kamloops Indian Band (KIB). The land north of Halston on either
side of the track, which is KIB reserve land, is almost entirely vacant, while south
of Halston, there is substantial industrial development and some residential
areas. These lands are ideal and have the most potential for intermodal container
facility development since they are flat, easily accessed from the highways, and
the main CN rail switching yards and crew changing also occurs there.

Venture Kamloops
Campbell Creek South has 20 hectares of total potential land available that is
sufficient for the types of facilities considered in this study. See Table 2 and 3.
Although having common borders, these sites are intersected by industrial park
access roads. In addition, the best scenario would require the CP tracks to re-
cross (over or under) the highway near the Shell Truck Stop for maximum
efficiency. The interruption to local road traffic and the cost of rail infrastructure
development would be considerable. The site at Campbell Creek may have
issues parking these long trains in the area—road crossing will require
over/under passes. Campbell Creek has some expansion capability, but it is
almost entirely restricted to expanding reload activities (truck-to-rail car) and not
for a substantial containerization facility.
The Mission Flats area, both the city yard and the vacant land near
Weyerhaeuser, are not suitable due to its proximity to the river, size,
configuration, and environmental issues. The vacant industrial land near the
Kamloops Airport is sufficiently large enough to accommodate a container facility,
however it may be best used as a trans-load or trans-shipment site, or a small
customer-specific intermodal operation. Ideally, the largest parcel of land should
be selected as it maximizes the flexibility of the intermodal facility, and allows for
future expansion and diversification of other services to offset market
fluctuations, rail rates, fuel costs, and environmental requirements.
The best intermodal container scenario depends on the types of products, the
volume expected, and any value-added services offered. Inland container
facilities have been built on as little as one acre, and some occur on over 200
acres. Considerations should include:
• not having to back the train in and out;
• sufficient flat land easily accessed from the highway;
• the land on the either side of the track should be wide enough to load and
unload containers easily from the train; and
• there should be land located nearby that can allow for storage of empty
and full containers and potential warehouses.

Venture Kamloops
Table 2 – Possible Locations for Kamloops Intermodal Container Facility
Site Sub-Description Land Size Rail Comments
Location (ha)
North of Halston Main CN terminal and 47.9 CN Suitable for all types of intermodal
office building and a VIA facility
terminal
South of Halston Near Tolko re-load 8.5 CN Potential to expand reload facility
and an ICF
Campbell Creek South Side of the 2 parcels at 4 CP No access now. Two parcels
Highway totalling 8 ha.
Campbell Creek South Side of the 4.0 CP Not available at this time.
Highway
Campbell Creek South Side of the 8.1 CP No access now.
Highway
Campbell Creek North Side of the Highway 16.3 CP Suitable for re-load expansion
East and minimal ICF
Mission Flats Past Weyerhaeuser 5.9 CP Environment (river) may be an

issue
Mission Flats City Yard 6.3 CP Size, configuration may be
problems
Airport Land at airport 8.6 CN Vacant; may be suitable for a
small ICF
Kamloops West: Ainsworth Lumber 7 CP Not available

Savona
Kamloops East - West of Pritchard on CP 15 CP Potentially contentious due to
Pritchard rail lines, currently it has ALR issues and local residents
fuel transfer station
Kamloops – Monte Lake 20 CN/OR ALR
South East
Kamloops Old Tolko Sawmill 48.8 CN Site is not directly served by rail,
North: Louis bt the line is nearby
Creek
Table 3 - Applicability of Sites

Site Location Re-distribution Inland Trans-load Customer Local
and Container and Trans- specific use
warehousing Facility shipment
North of Halston YES YES YES YES YES
South of Halston YES YES YES YES YES
Campbell Creek YES YES YES YES YES
Campbell Creek
East NO Limited YES YES YES
Mission Flats -
Past NO NO NO YES NO
Weyerhaeuser
Mission Flats -
City Yard NO NO NO YES NO
Airport YES Limited YES YES YES
Savona NO NO YES YES YES
Pritchard NO NO YES YES YES
Monte Lake NO NO YES YES YES
Louis Creek YES YES YES YES YES

Venture Kamloops
Venture Kamloops
7.0 Intermodal Container Facility Opportunity in
Kamloops
There is an opportunity for an inland container facility in Kamloops. Kamloops’
highway and rail network provides excellent service, access, intermodal linkages
for transportation of lumber, pulp, and finished goods to both domestic and
international markets. The current movement of these commodities creates
access to Vancouver Port, providing Kamloops has the ability to compete and
succeed in the container facility marketplace. An intermodal facility has potential
in Kamloops because there is community motivation and support, industry
interest, and available land. This facility should offer services for handling and
temporary storing of import/export laden and empty containers. Trans-shipment
could also take place and would include stuffing and de-stuffing of containers for
consolidation of cargo. There are a number of locations available in Kamloops
that would be suitable for an intermodal container facility. The parcels under
consideration all have either direct rail access or require a minimal amount of rail
infrastructure additions. However, some of the parcels will probably be ruled out
depending on decisions about the volume of containers, type of products,
warehousing, and other services offered.
7.1 Kamloops - Potential Intermodal Facility Type
The volumes generated in Kamloops are predominately pulp and lumber and a
facility handling these products is most probable for Kamloops. Other products
should be considered such as wood pellets from manufacturers in Prince
George, Quesnel, and Armstrong—communities that all have strong markets in
Europe. Fruit and wine from the Okanagan, cat litter from Western Industrial
Clay, and speciality grains should be further investigated as possible products for
a Kamloops intermodal container facility.
Based on research findings and current reload activities in Kamloops, it can be

resolved that there is an opportunity for a mixed-use facility. This mixed-use
facility would include lumber reload from truck-to-rail car for North American
markets and stuffing lumber into containers for export markets through the ports
of Vancouver and Prince Rupert. There are two pulp-export market opportunities:
Weyerhaeuser/Domtar in Kamloops and Mercer in Castlegar. Unfortunately, the
domestic pulp movement already has well-defined transportation logistics and
does not represent an intermodal opportunity at this time.
The pulp destined for export markets will require warehousing, and the
intermodal facility should be able to provide consolidation and container stuffing
for customer specific requirements. The facility should also contain maintenance,
preparation, and storage of empty containers, and have the ability to add a

Venture Kamloops
refrigerated warehouse, which would allow the possibility of expansion for fruit
and wine handling. Such a facility should be designed to eventually expand to
add value-added services such as packaging and repackaging of grain, wood
pellet, plywood, lumber, and pulp products. Usually intermodal facilities on their
own are not high generators of employment, but providing value-added services
will generate employment and attract larger export-oriented manufacturers.
7.2 Commodity Volumes in Kamloops
Research findings indicate that the main opportunities in Kamloops for such a
facility will come from lumber and pulp products. Large volumes of these
products already originate in, or pass through, Kamloops either on truck or
regular rail cars to points in the Lower Mainland for consolidation,
containerization, and export.
Main lumber and pulp volumes originating in Kamloops and some volume
passing through Kamloops are indicated in Table 4. These potential volumes are
not commitments, but an indication of the market sizes that Kamloops intermodal
container facility maybe able to access.
Table 4 – Commodities Volumes

Commodities Potential Volume 40’Container Equivalent
Kamloops 12 million board feet/year 400
Weyerhaeuser Lumber
Canada Weyerhaeuser 170 million board feet/year 5,667
Lumber
Okanagan Falls 10 million board feet/year 333
Weyerhaeuser Lumber
Kamloops 492,750 tons/year 19,710
Weyerhaeuser Pulp
Castlegar Mercer’s Pulp 440,000 tons/year 17,600
Total Containerized Volume/year 43,710
7.3 Benefits of an Inland Container Facility in Kamloops
An intermodal container facility in Kamloops could:
• Reduce the numbers of heavy transport trucks on the Trans-Canada

Highway travelling between the Rockies and the Lower Mainland, resulting
in significant savings in highway maintenance and rehabilitation costs.
• Provide another option for shippers to get their export products to port.
• Increase capacity and efficiency of the Vancouver Port.

Venture Kamloops
• Reduce shipping costs for local manufacturing companies for both
commodity and export products.
• Be a unique selling point for attracting manufacturing companies to
Kamloops.
• Create jobs in the region as a result of expanding the freight, intermodal,
and distribution industry in Kamloops.
• Attract investment in the transportation infrastructure of Kamloops from
railways, private industry, and senior levels of government.
7.4 Labour Requirements
Many factors affect the level of skilled and general labour required, such as the
types of value-added services offered, the volume moved through the facility, and
operating hours. Regardless, a wide range of jobs at different skill levels would
be required and include senior and middle management, clerical, security,
supervisors, maintenance workers, truck drivers, and skilled labour. The table
below gives an outline of the types and number of jobs that would be required at
a container facility.
Usually intermodal facilities on their own are not high generators of employment,
but providing value-added services will create jobs and attract larger export-
oriented manufacturers.
Table 5 – Kamloops Inland Intermodal Container Facility Employment Projections:
# People
Activity Per shift Responsibility
General Manager 1 Plant Management and marketing

Receptionist/book-
keeper 1 Reception, book-keeping
Gate person 1 Receive trucks
Dispatcher 1 Truck and rail scheduling
Site Manager 1 Site foreman/planning
Reach-stacker driver 1 Unload and load containers
Ground crew 2 Stuffing/de-stuffing, consolidation
Ground support 2 Truck and rail support
Warehouse workers 2 Storage
Security 1 Keep site secure
Maintenance 2 Container repair & cleaning
Value-added services 5 Packaging, bagging, etc.
Total 20 Per shift

Venture Kamloops
Potential Local Employment Projections:
Manufacturing Sector 75 Plant expansions and new plants,

Transportation Sector 50 New trucking operations
Total 125
7.5 Challenges
Rail Cooperation and Buy-in

Originally, both CP and CN provided inducements to grow container trade in
Canada by providing enhanced rate structures, free storage, and low or no cost
repositioning to make containers available for exports (Quorum Corp., 2006).
Since then, intermodal systems have become efficient and have taken on a
priority role over regular freight transportation. This means that intermodal trains
are expedited through the rail system and do not stop, except at major intermodal
centres or for crew changes. In Kamloops, however, intermodal trains are
stopping both on CP and CN stations for crew change while freight trains stop for
switching, as well as for a crew change. To facilitate the stopping of intermodal
trains in Kamloops to include picking up containers cars and dropping of empty
containers, Kamloops must demonstrate a business case to the railways that
proves the extra time and costs of providing this switching service will be
recovered through increased business.
Access to Empty Containers

Container traffic has increased considerably and rail lines or container terminals
do not want to store empty containers in their rail yards. Therefore, they have
placed limitations on the number of containers a shipping line can store at any
given terminal by charging high storage fees. Most manufacturers and shipping
lines prefer to have container stuffing at a commodities true point of origin to
minimize handling, retain product quality, and reduce the cost of trans-shipping.
Such increased complexity and cost means that steamship lines will
by pass source loading, particularly when repositioning empties is required. This
has resulted in considerable pressure being focused on the loading activities at
the ports.
It will be a challenge for a Kamloops intermodal facility to access empty

containers. Kamloops will have to identify container owners, container
customers, or the presence of an information system that facilitates the
availability of empty containers and pinpoints exactly where, and how many,
containers the Kamloops facility could access for storage and stuffing. An
example is APL, which repositions empty containers from Boston, USA to
Vancouver on CP lines. Weyerhaeuser pulp mill in Kamloops sends a lot of its
products on the APL shipping line. Therefore, empty APL containers can be
dropped off in Kamloops for Weyerhaeuser pulp use rather than going all the way
to Vancouver empty. Kamloops has to access the right containers for the right

Venture Kamloops
shipping lines. Tioga Group (2002) identified 5 key factors that hinder the ability
to access empty containers:
• import/export timing or location mismatch;
• ownership mismatch (e.g., wrong steam ship line);
• type mismatch (e.g., wrong size, wrong type, or tri-axle chassis required
for heavy export);
• off hiring of leased containers; and
• lack of steamship line incentive.
Challenges of Logistics
Besides accessing containers and containerization, there are other operations-

related issues that may inhibit the setup of an intermodal container facility in
Kamloops. Most containerization services, such as warehousing and associated
consolidation of product lines, are concentrated near ports. For example,
virtually all lumber mills in BC send their products destined for export by truck to
Vancouver because 1) trucks have quick response times, 2) truck rates are more
competitive over rail because of backhaul opportunity, and 3) the large
warehousing infrastructure associated with container stuffing facilities in the
Lower Mainland allows for large storage of all product lines and the ability to
consolidate customer orders to their specifications.
Another challenge is that customers can transport higher volumes on a rail car
versus a container. For example, a box car can hold 85 tons versus 25 tons in a
40-foot container. Since there may not necessarily be any cost advantage to
warehouse, consolidate, stuff, and ship containers in Kamloops versus the Lower
Mainland, a reason to switch may only occur when the capacity of facilities in the
Lower Mainland is exceeded and need for developing other facilities further
inland becomes critical. Unless, of course, there are incentives offered by the
shipping companies, rail lines, container terminals, or the government.
Local Industry Stakeholders
To get enough volume for an intermodal container facility in Kamloops to meet

the business case requirements of the railways, the facility will most likely have to
be multi-use and serve lumber, pulp, and other value-added commodities. The
facility should also provide a number of customer specific services including
container stuffing, re-loading, cross-docking, warehousing, storage of empties
and consolidation.
It is incumbent upon Kamloops to garner and retain support for this facility from
all local industry and manufacturers, as well as key customers, such as
Weyerhaeuser, Tolko, Mercer, and Arrow.

Venture Kamloops
8.0 Next Steps
There is a solid opportunity for an inland intermodal container facility in
Kamloops. While the objective of Venture Kamloops is to investigate the
opportunity, it will be up to industry partners to develop it. If viable, a leadership
organization such as Venture Kamloops can provide facilitation, identify industry
partners, and access land and government grants. To move closer to realizing
this facility, the following steps are necessary:
• An industry Steering Group from the people surveyed in this report should
be brought together. This group should plan, partner, and promote the
inland intermodal container facility in Kamloops.
• Ongoing research and discussions will be required throughout this

planning phase with the Vancouver Port Authority, shipping lines,
railways, industry, and other stakeholders to ensure that the project
provides benefits, efficiencies, and impacts the productivity of all logistical
aspects that are involved in the movement of containerized commodities.
• A clear understanding regarding the relationship between shipper,

container owner, and steamship line is essential to access empty
containers and related logistics.
• The Steering Group will determine which type of intermodal facility is the
best fit for their needs and the needs of Kamloops based on technical and
marketing considerations. This Steering Group may also become the core
nucleus of investors and customers.
• The Steering Group will develop a business case to present to CN and

CP, as well as other stakeholders, for their cooperation and buy-in to
service the intermodal facility.

Venture Kamloops
9.0 References
Alternative Arrangements for Transport, Handling and Storage of Shipping
Containers Associated with Fremantle Port Inner Harbour, May 2005, Sea
Freight Council of Western Australia.
BC Progress Board. Dec 2004. Transportation as an Economic Growth

Engine: Challenges, Opportunities and Policy Suggestion. Report prepared
by Dr. Michael Goldberg, University of British Columbia.
Berwick, Mark. 2001. North Dakota Strategic Freight Analysis: Item 1.

Intermodal Highway/Rail/Container Transportation and North Dakota. North
Dakota State University.
Bonderud, L. 1988. The Emerging Role of An Inland Intermodal

Transportation Facility. Transportation Research Board, Washington, DC.
Canadian Pacific Railways. 2002. Annual Report. Canadian Pacific Railways.
Christopher, John. 1993. Ports in Canada: Future Competitiveness.

Government of Canada.
City of Vancouver. 2002. Understanding the Service needs of Port

Vancouver: Technical Background Paper. City of Vancouver.
Economic Growth Solutions Inc. 2005. Prince Rupert/Port Edward Contianer

Port Business Opportunities Study – Executive Summary. Prince Rupert Port
Authority.
Guidelines, Norms and Application Form for Setting up Inland Container

Depots (ICDs) and Container Freight Stations (CFSs), Part A,
http://www.tidco.com/tidcodocs/India/EXIM%20Policy/GUIDELINES%20for%20In
ternal%20containers%20Depots%20Policy.doc
Intermodal Glossary:
http://www.intermodal.org/statistics_files/Intermodal%20Glossary.html
InterVistas Consulting Inc. May 2005. Port of Vancouver Economic Impact

Update.
Jones, C. & Rowat, Bill. 2003. A Case for Investment in Rail and Intermodal
Transport. Policy Options.

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Mercer International Group. 2006. Kamloops Reload Project: Introductory
Overview – a Power point Presentation. Mercer International.
Middendorf, D.P. 1998. Intermodal Terminals Database: Concept, Design,

Implementatio9n, and Maintenance. Center for Transportation Analysis Energy
Division. Oak Ridge National Laboratory.
Novacorp Consulting Inc. 2006. Inland Container Terminals Strategic

assessment – Final Report. Vancouver Port Authority.
Quorum Corporation. 2006. Monitoring the Canadian Grain Handling and

Transportation System,. Container Measure Study: Issues and Discussion
for Proposed Measures for the Grain Monitoring Program. Government of
Canada.
Robl, Ernest H., 2006, The Intermodal Container FAQ,

http://www.robl.w1.com/Transport/intermod.htm
Rodrigue, Dr. Jean-Paul, Dr. Brian Slack and Dr. Claude Comtois, Intermodal
Transportation,
http://people.hofstra.edu/geotrans/eng/ch3en/conc3en/ch3c5en.html
Taggart, W.A. & Barrett, N. 1992. Funding and Operation of an Intermodal

Transportation Facility at the Santa Teresa Border Crossing. New Mexico
State University, Las Cruces, New Mexico.
Tioga Group. 2002. Empty Ocean Container Logistic Study. Southern

California Association of Governments.
Vancouver Port Authority. 2006. VPA Supply Chain Strategy: Improving

Efficiencies in Canada’s Flagship Port. a Power point Presentation.
Vancouver Port Authority. 2005. Annual Report 2005. VPA.
VICA Transportation Committee, 2006. Position Paper on the Port of Loas

Angles’ Intermodal Rail Policy.
Yevdokimov, Yuri V. 2001. Measuring Economic benefits of Intermodal

Transportation. University of New Brunswick.
West, Norm & Kawarmura, K. 2004. Location, design and operation of future
Intermodal rail yards: a survey. University of Illinois, Chicago.
The Port & Operations. Delta Port – Robert Banks, site accessed 06/07/2006
http://www.portvancouver.com

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TSI Terminal Systems. Vanterm Expansion, Site accessed 07/07/2006.
http://www.tsi.bc.ca
Coast 2000. http://www.coast2000terminals.com.

Venture Kamloops
10.0 Survey Participants
Organization Name and Position Contact
Richmond Logistique Dany Julien, M.Sc. Tel : 819- 826-3663
675, 7 Avenue VP Ventes et marketing / Fax: 819- 826–1441
Richmond, QC J0B 2H0 Sales & Marketing
danjulien@bellnet.ca
Canadian Pacific Railway Larry Metz, Manager Tel: 604-469-4319
Intermodal Yard
Delta Port Authority Alex Adams, Yard Supervisor Tel: 604-215-5769

Cell: 604-785-4225
Coast 2000 Terminals Kevin Ouellette, President Tel: 604-232-2604

Cell: 604-328-9971
Vancouver Port Authority Peter Xotta, Director of Tel: 604-665-9049
Business Development
Mercer International & Jim Allan – Trealmont Tel: 604-640-7412

Trealmont Chartering Brian Merwin – Mercer
TSI: Venterm John Leonard Tel: 604-649-1887

Cell: 604-251-9300
PNO Ports, Centerm Trevor Dyck Tel: 604-252-2435,
Timber Trax Reload John Hall Tel : 250- 766-1511

8717 Jim Bailey Cres jhall@timbertrax.com
Kelowna, BC V4V 2L7 www.timbertrax.com
Weyerhaeuser Pulp Dale Kitamura, Pulp Sales Tel:250-828-7253
Service Leader
Weyerhaeuser Saw Mills W.M. (Bill) Gysel, Export Sales Tel:250-828-7692
Manager
Arrow Transportation W.R. (Joe) Mather, General Tel:250-571-7762
systems Manager, Business
Development
Canadian National Ed Bruzzese, General Tel: 250-828-6404
Superintendent Operations
Canadian Pacific Dan Havorka, Operations Tel: 250-828-7005
Manger
Tolko Kamloops Reload Richard McDonald Tel: 250-374-6654

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Appendices

Venture Kamloops
Appendix “A”: Glossary of Intermodal Terms
Accessorial Charges
Charges for a wide variety of services and privileges that are made available in connection with the
transportation of goods. Includes all charges other than freight charges.
Availability Time
The time equipment is grounded and available for pick-up by the customer.
Back Haul
Traffic for the return movement of a car or container towards the point where the initial load
originated or to handle a shipment in the direction of the light flow of traffic.
Bad Order
A freight car loaded improperly, mechanically defective, or has safety violations.
Beneficial Owner
The actual owner of the lading that is being shipped. The IMC negotiates transportation services
and rates on behalf of the beneficial owner.
Billing Carrier (Bill Road)

The carrier performing the first line haul service of the movement. This carrier is responsible for
preparing the waybill document and transmitting the information to any following carriers.
Bill of Lading
A shipping form which is both a receipt for property and a contract for delivery of goods by a carrier.
The principal bills of lading are: Straight A non-negotiable document. Surrender of the original is not
required upon delivery of the freight unless necessary to identify consignee. Order A negotiable
document. Surrender of the original property endorsed is required by transportation lines upon
delivery of the freight, in accordance with its terms. Clean Either a Straight or Order Bill of Lading in
which the transportation company acknowledges receipt of the property without noting any
exceptions as to shortage or damage to the property received. Exchange A bill of lading which is
given in exchange for another. Export One given to cover a shipment consigned to some foreign
country. Government A special form of bill of lading which is used in making shipments for the
account of the United States Government.
Block
A group of railcars destined to the same location.
Blocking or Bracing
Wood or metal or other approved supports to keep shipments in place in or on railcars, containers
and trailers.
Bobtail
Motor Carrier slang indicating a non-revenue movement without a trailer or container attached.

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Bogie
A frame with wheels on which a container is mounted for street or highway transport. Commonly
referred to as a chassis.
Bonded Warehouse
A warehouse owned by persons approved by the Treasury Department, an under bond or
guarantee for the strict observance of the revenue laws; utilized for storing goods until duties are
paid or goods are otherwise properly released.
Bridge Move
A railroad movement involving at least three roadhaul carriers at which the IP is neither the first or
last carrier.
Broker
An individual who acts as an agent for a customer, who is attempting to route a car to a customer in
Mexico or Canada. Equipment destined to a locale in Mexico is billed only to the border. At that
time a broker, in cooperation with a broker in Mexico, prepares the proper paperwork which allows
the car to cross the border and proceed to its destination.
Bulk Transfer
Transfer of bulk material, both dry and liquid, between modes of transport
Car Location Message (CLM)

That part of the fleet system which deals with providing the fleet operator with information on car
movement data for all cars in the fleet (see fleet). This information comes in the form of a periodic
(usually daily, sometimes hourly) message or report which contains the latest movement data on all
cars from the fleets that are on our lines. This message follows an industry wide standard format
that enables shippers who use railroads across the US and Canada to use this information for
updating their own computer systems.
Car Scheduling
A system of assigning a "trip plan" that is based primarily on waybill data. Cars are scheduled to the
first available train that may carry the specific type of traffic into which they are categorized.
Cartage
Pick up or delivery of freight within commercial zone of a city by local carrier acting as agent for a
shipper or over-the-rail carrier.
Chassis
A rubber-tired trailer under-frame on which a container is mounted for street or highway transport.
Circus Ramp
Stationary or portable end loading/unloading ramp which requires a truck tractor to drive a trailer
onto or off of rail flatcars.
Claims
A demand, supported by evidence, to show that the claimant has sustained a loss through the
negligence of a carrier. The principal kinds are: Damage Claim due to physical injury to shipment

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or because shipment was not delivered within a reasonable time. Loss Claim due to failure to
deliver goods. Overcharge Claims when more than the legally published charges were collected.
Reparation Claims for a refund of charges which, while in accordance with legally published tariffs,
are unreasonable or unjust and the carrier has since published the lower reasonable rate.
Clearance
The limiting dimensions of a rail shipment that would allow/prevent its clearing of tunnels and
bridges.
COFC (container on flatcar)

The movement of a container on a railroad flatcar. This movement is made without the container
being mounted on a chassis.
Common Carrier
A transportation line engaged in the business of handling persons or goods for compensation and
for all persons impartially.
Connecting Carrier
A carrier that has a direct physical connection with another or forming a connecting link between
two or more carriers.
Consignee
The individual or organization to which freight is shipped. Freight is shipped by the consignor to the
consignee.
Consignor
The individual or organization shipping freight to a consignee.
Container
A receptacle that resembles a truck trailer without wheel (chassis) that is lifted onto flatcars.
Containers are designed for all modes of intermodal transport. Most containers are 20, 45, 48 or 53
feet in length, 8’6” in height and 8’ wide.
Container Yard
A yard used for storage of containers when not in use. Container yards can be railroad or privately
owned.
Conventional Car
A single platform flatcar designed to carry a trailer or container. Containers can only be single
stacked on a conventional car. Conventional cars are equipped with one or two stanctions,
depending on length, for shipment of one or two trailers.
Crane
A large machine that straddles the railroad track for the purpose of loading and loading containers
and trailers to and from railcars.

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Cross-Town
When a drayman or railroad delivers a container or trailer from one railroad to another for
continuance of the move.
Customs Broker
A company or individual licensed by the Treasury Department to act on behalf of
importers/exporters in handling U.S. customs transactions.
Cut-Off Time
The time a container or trailer must be ingated at the terminal to meet a scheduled train loading for
departure.
Dead Head
When a drayage firm is required to move empty equipment a long distance to pick up a load.
Dedicated Train
A train that by design transports a dedicated commodity or type of cars. In the case of intermodal,
intermodal trains only carry trailers and/or containers.
Detention
A charge made on trailers/containers held by or for a consignor/consignee for loading or unloading,
forwarding directions, or any other purpose.
De-stuffing
Unloading cargo from a container
Displacement Light
The weight of a vessel without cargo, fuel or stores.
Diversion
A change made in the route of a shipment in transit.
Division
The amount of revenue apportioned to each rail carrier participating in a given route, where the
customer is invoiced on a through-rate basis.
Door-to-Door
A movement of lading from the customers front door (dock) to the receivers front door (dock).
Door-to-Ramp
A movement of lading from the customers front door (dock) to the destination intermodal ramp
closest to the receiver.
Double-Stack
The movement of containers on articulated rail cars which enable the one container to be stacked
on another container for better ride quality and car utilization.

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Drayage
The movement of a container or trailer to or from the railroad intermodal terminal to or from the
customer's facility for loading or unloading.
Drayman
A person employed to pick up or drop off a container or trailer at an intermodal terminal.
Driver Assist
When a drayman is required to assist in the loading/unloading of a container or trailer.
Drop & Pull

Drayman drops loaded or unloaded unit at shipper or receiver and hooks up to unit which was
previously dropped and returns it to the ramp.
Dry Run
When a drayman goes to a ramp to pick up a container and for some reason leaves without one.
Dunnage
The material used to protect or support freight in containers or trailers.
EDI (Electronic Data Interchange)

The process of sending and retrieving information electronically, i.e. bills of lading, freight bills, etc.
Embargo
To resist or prohibit the acceptance and handling of freight. An embargo may be caused by acts of
God such as tornadoes, floods, inclement weather, congestion, etc.
EMP
A domestic interline container service offered by Union Pacific and Norfolk Southern. Also included
in the program are agent railroads such as I&M Rail Link, Iowa Interstate, Wisconsin Central and
Kansas City Southern. EMP provides a fleet of nearly 25,000 48' and 53' domestic containers and
chassis that may move throughout a large network.
En Route
In transit to destination.
FAK
Freight of All Kinds
Flatcar
A freight car having a floor without any housing or body above. Frequently used to carry containers
and/or trailers or oversized/odd-shaped commodities. The three types of flatcars used in intermodal
are conventional, spine and stack cars.

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Flip
When a container is picked up off of the ground and mounted on a chassis for street or highway
transport.
Flip Charges
Charges assessed to a shipper when the railroad is required to provide an unnecessary or extra
flip. An example of this is when a private container is grounded off of a train and no chassis is
available at that time. A flip charge is assessed because a flip is required at a time after the train is
unloaded.
Foreign Equipment
Any car not belonging to the particular railway on which it is running.
Foreign Carrier
A term used by a carrier in making references to all other carriers collectively.
FRA
Federal Railroad Administration - The FRA deals specifically with transportation policy as it affects
the nation's railroads and is responsible for enforcement of rail safety laws.
Free Time
The period allowed the owner to accept delivery before storage or detention charges begin to
accrue.
Freight Bill
Statements containing commodity and payment information.
Freight Forwarder
One who assembles small shipments into one large shipment which is then tendered to a regulated
over the road carrier. Upon reaching destination, the shipment is separated into small shipments
and delivered.
Gate
A point at an intermodal terminal where a clerk checks in and out all containers and trailer. All
reservations and paperwork are checked at the gatehouse.
Gatehouse
A structure at the gate where a clerk inspects and clears the entrance and exit of all containers and
trailers.
Gateway
A point through which freight commonly moves from one territory or carrier to another.
Haulage
A legal agreement between two rail partners. The owner of the agreement is referred to as the
'Haulage Rights Carrier'. The other partner is referred to as the 'Haulage Movement Carrier'. With

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this agreement, the 'rights carrier' requests the 'movement carrier' to move equipment over an
agreed segment of track, but to outside parties it appears as if the 'rights carrier' is doing the work.
Hazardous Material (Haz Mat)

Substance or combination their of which, because of its quantity, concentration, physical or
chemical characteristics, may cause or significantly pose a substantial hazard to human health or
the environment when improperly packaged, stored, transported, or otherwise managed.
Headhaul
Rail or truck term used to define the highest revenue generating shipping lane from shipper to
receiver.
ICC
Interstate Commerce Commission, a federal regulatory agency that governed over the rules and
regulations of the railroading industry. The ICC Termination Act of 1995 ended this regulatory
agency. Most responsibilities were transferred to the Surface Transportation Board.
Inbond
When lading clears customs at the ultimate destination instead of at the border.
Ingate
The process of checking a container or trailer into the intermodal facility. The ingate process
includes inspection of the unit, reservation confirmation, the input of data into Union Pacific's
computer system and the filling out of the J-1.
Inland Carrier
A transportation company which hauls export or import traffic between ports and inland points.
Interchange
The exchange of railcars between connecting railroads.
Interchange Agreement
Agreement between a railroad and a drayage company that allows a specific drayage company to
drop off or pick up railroad or private intermodal equipment at the said railroad's facilities. Also
known as an Equipment Interchange Agreement.
lnterline Freight
Freight moving from point of origin to destination over two or more transportation lines.
lntermodal
Transport of freight by two or modes of transportation. Examples are: ship-rail, rail-truck.
Intermodal Terminal
A railroad facility designed for the loading and unloading of containers and trailers to and from
flatcars for movement on the railroad and subsequent movement on the street or highway.
Intermodal Marketing Company (IMC)

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IMCs purchase rail and truck transportation services, utilize equipment from multiple sources, and
provide other value-added services under a single freight bill to the ultimate shipper.
Intermodal Association of North America (IANA)

An industry trade association representing the combined interests of intermodal freight
transportation companies.
IPI (Interior Point Intermodal)

Imported traffic movement from an origin port to an inland point on an ocean bill of lading.
J-1
A report filled out during the ingate and outgate process. The J-1 details damage to the unit,
container information, shipping information, drayman involved and time of ingate/outgate.
Lading
That which constitutes a load. The freight in or on a railcar, container or trailer.
Landbridge
Containerized marine traffic that is routed via rail across the United States on traffic between the
Far East and Europe/Canada in lieu of all water routes.
Landing Gear
Moveable metal legs on the front of a semi-trailer which support the trailer when not connected to a
tractor.
Lift
The process of moving a container or trailer to and or from a rail car.
Live Load
When a drayman stays with a container or trailer while being loaded or unloaded.
Load Shift
The term when the contents of a container or trailer are shifted inside the unit sometime after it
leaves the actual origin and before it arrives at the final destination.
Local Move
A railroad movement in which only one road haul carrier participates. The one carrier serves both
the origin and destination station.
LTL (Less Than Truckload)

A shipment that would not by itself fill the truck to capacity by weight or volume.
Lumper
A person hired to help unload a container or trailer instead of using the driver.
Maintenance of Way

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The process of maintaining roadbed (rail, ties, ballast, bridges etc.) These materials are hauled in
special maintenance of way cars, which also include cars that are equipped with heavy equipment,
such as cranes and tie replacing machines.
Mini-Landbridge
Imported traffic movement from an origin port to a destination port on an ocean bill of lading via
land transportation.
Non-bulk Transfer
Freight such as lumber, plywood, steel, packaged products, etc. transferred and sometimes stored
at reload centres, warehouses or rail tracks.
Notify Party
The party that is notified at the time a container or trailer is grounded from a train. Most notify
parties are draymen.
Ocean Bill of Lading

Receipt and contract of carriage with a steamship company movement of goods between ports.
Off Junction
Location where interchange to another carrier takes place.
OTR (Over the Road)

Refers to movement of a truck over the road instead of an intermodal movement.
Outgate
The process of checking a container or trailer out of an intermodal facility. The outgate process
includes inspection of the unit, input of data into Union Pacific's computer system and the filling out
of the J-1.
OutReach Program
A rail-truck or truck-rail movement in which Union Pacific has combined the rail and drayage into a
single transportation package for EMP and SPDU containers. Containers are shipped via rail from
one terminal to another. After that, a contracted drayage firm drays the container to the paper ramp
operators lot for customer pickup. The process also works reverse as well, shipment can originate
with the truck movement and then move to the rail portion of the movement. Also referred to as the
OutReach Program.
Overhead Shipment
A railroad movement involving at least three railroad carriers at which UP is neither the first nor the
last carrier.
Packer
A moveable piece of heavy machinery used to lift rail containers or trailers on/off railroad flatcars at
an intermodal facility. Also known as a piggybacker.

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Packing List
A detailed specification as to goods packed into a container or trailer.
Pad
An area within a parking lot or intermodal terminal designated for a particular type of container or
trailer, such as loaded outbound.
Pallet
A wooden, paper or plastic platform usually with a top and bottom, on which packaged goods are
placed to facilitate movement by some type of freight handling equipment.
Paper Ramp
A rail-truck or truck-rail movement in which Union Pacific has combined the rail and drayage into a
single transportation package for EMP and SPDU containers. Containers are shipped via rail from
one terminal to another. After that, a contracted drayage firm drays the container to the paper ramp
operators lot for customer pickup. The process also works reverse as well, shipment can originate
with the truck movement and then move to the rail portion of the movement. Also referred to as the
OutReach Program.
Per Diem
Charge based on a fixed rate per day which a carrier makes against another carrier or customer for
use of its containers or trailers.
Pickup Number
A secure number provided to parties listed on the waybill. It allows only those parties to receive a
container in order to outgate from our ramp facilties.
Piggyback
Transportation of a highway trailer on a railroad flatcar.
Pigs
A railroad term for trailers loaded on flatcars.
Placard
A sign affixed to a rail car or truck, which indicates the hazardous designation of the product being
transported in that vehicle.
Pool
An assigned group of containers, trailers or cars used to satisfy the transportation requirements of a
customer.
Port Charge
A charge for services rendered at ports.
Port Mark

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A term used in foreign shipping which denotes final destination--not the port of entry unless such
port is the final destination.
Port of Entry
A port at which foreign goods are admitted into the receiving country. Ports of entry are officially
designated by the government.
Premium Service
Highest level of service available on the railroad.
Private Equipment
Equipment whose ownership is vested in a person or company that is not engaged in the service of
common carriage.
Proportional Price
Price from or to an intermediate point. Rate is to be used in combination with another carrier's
proportional rate to make an interline rate.
Pup
A 28' trailer, used mostly in less than truckload business.
Ramp
Slang word for an intermodal terminal. Ramps were originally structures, permanent or temporary,
from which trailers or machinery are driven onto or off of a railroad flatcar.
Ramp-to-Door
A movement of lading from the intermodal ramp closest to the customer to the receivers from door
(dock).
Ramp-to-Ramp
A movement of lading from the intermodal ramp closest to the customer to the closest intermodal
ramp to the receiver.
RCAF (Rail Cost Adjustment Factor)

An index published quarterly by the AAR showing the average change in railroad costs.
Reconsignment
1. Any change, other than a change in route, made in a consignment before the arrival of goods at
their billed destination.
2. Any change made in a consignment after the arrival of goods at their billed destination. When the
change is accomplished under conditions which make it subject to the reconsignment rules and
charges of the carrier.
Reefer
Refrigerated container
Revenue Empty

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MovemeMoveme
nt of an empty container or trailer that generates revenue for the railroad. Done for repositioning
purposes.
Reverse Route
The exact reverse of the route a loaded car traveled from its destination, including all carriers and
junctions involved.
REZ-1
An independent agent that handles all reservations and billing functions for EMP customers with a
centralized system to manage assets through the internet. REZ-1 also handles UP trailer
reservations for selected points.
Rubber Wheel Interchange

Containers or trailers that are interchanged between two railroads by means of drayage.
Rule 11
A railroad accounting term which refers to a customer shipping their freight "pre-paid" to an
intermediate point and "collect" beyond that intermediate point to the final destination.
Run-Through
A train which originates on a different railroad that it terminates and does not get reclassified at
interchange but rather "runs-through" to a point on the second railroad before the train is broken up.
SCQ (Specific Commodity Quote)

A private contract issued to Union Pacific Intermodal customers that lists rates for specific origin
and destination pairs. Also includes restrictions and provisions for the application of those rates.
Seal
A device for fastening or locking the doors of a railcar, container or trailer. This is done for security
and integrity of the shipment.
Slack
The elongation which occurs between railcar couplers because of their spring-loaded design.
Slot Utilization
The method of utilizing every space available on a double stack car. A slot includes the space
above a container when another container can be double-stacked. A five platform double stack car
has 10 slots available for loading. If all 10 slots are loaded, you have 100% slot utilization.
Spine Car
A light weight articulated car that is a assembled in permanent consists of three or five platforms.
Spine cars carry containers or trailers in single stack configuration.
Stack Car
An intermodal flatcar that was specifically designed to place one container on top of another better
utilization and economics. Also referred to as a well car because the cars are depressed in the
center to allow clearance of the double stacked containers when moving under low-lying structures.

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Stanchion
The hitches used to support the nose end of trailers when they are mounted on a flatcar. There are
two types of stanchions: collapsible and fixed.
STCC (Standard Transportation Commodity Codes)

The STCC system is a 7 digit coding structure designed to classify all commodities or articles which
move or may move in freight transportation.
Steel Wheel Interchange

Containers or trailers that are interchanged between two railroads while on the railroad flatcar.
Storage Charge
A charge assigned to the shipper or consignee for holding containers or trailers at an intermodal
terminal beyond the free time allotted to them.
Street Time
The time a container or trailer is away from the possession of the railroad.
Stuffing
Loading cargo into a container
System Equipment
Equipment owned or leased by a railroad. Each railroad considers their own equipment as system
equipment.
Tare Weight
a) The weight of a container and the material used for packing.
b) As applied to a car/trailer, the weight of the car/trailer exclusive of its contents.
Tariff
A legal listing of rates used when moving regulated traffic by rail.
TEU
Twenty-foot equivalent unit – refers to a 2- foot long container, 8’6” in height and 8’ wide.
Through Rate
A rate applicable from origin to destination over two or more rail carriers.
TOFC (trailer on flatcar)

A rail trailer or container mounted on a chassis that is transported on a rail car. Also known as
piggyback.
Trailer
A rectangular shaped box with permanent wheels attached for the transport of goods on rail,
highway or a combination of both.

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Transload
To physically transfer product from one transportation vehicle to another.
UMLER (Universal Machine Language Equipment Register)

A computer readable file of vital statistics for each railroad car in service. It applies to all railroads,
types of cars, and data processing machines.
Van Grounding
The event when a container or trailer is taken off of the train and placed on the ground for customer
pickup. At this time, the container is mounted on a chassis and the notify party is notified.
Van Notify
The event when the notify party is notified by the railroad that the container or trailer is available for
pickup.
Vessel's Manifest
Statement of vessel's cargo, revenue, consignee, etc.
Waybill
A document covering a shipment and showing the forwarding and receiving station, the names of
consignor and consignee, the car initials and number, the routing, the description and weight of the
commodity, instructions for special services, the rate, total charges, advances and waybill reference
for previous services and the amount prepaid.
Well Car
An intermodal flatcar that was specifically designed to place one container on top of another better
utilization and economics. Referred to as a well car because the cars are
depressed in the center to allow clearance of the double stacked containers when moving under
low-lying structures.

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Appendix “B”: Container Companies and Port
Authorities
Container companies – Chamber of Shipping (Canada)

Cosco Canada Inc. (China Ocean Shipping Company)
COSCO Group owns and operates 550 modern merchant ships with a total carrying
capacity of up to 30 million DWT. It ranks first in international bulk shipping sector for
years and is also listed as one of the Top 10 container liner operators in the world. Ships
and containers with the conspicuous "COSCO" logo are shuttling among 1,300 ports in
more than 160 countries and regions.
Head Office:
No.378, Dong Da Ming Road, Shanghai 200080
Tel: 86-21-35124888
Fax: 86-21-65458984
Web: www.coscon.com
Local Office:
604-689-8989
Vancouver
www.cosco.ca
Compass Marine Services

Compass Marine Services is a shipping agency providing top-quality services for vessels
engaged in bulk, break bulk, and container cargo trades with Canada. It is situated in
Vancouver and has earned an international reputation for its seamless handling of
vessel and cargo on both Canadian coasts.
Local Office:
Compass Marine Services
Suite 2200 - 1050 West Pender Street
Vancouver, BC
V6E 3S7
1 604 669 0100 (24 hours)
www.compassmarine.ca
Empire Shipping Agency
Local Office
Suite 316, 611 Alexander Street
Vancouver, BC Canada
V6A 1E1
Claus Hendriksen, President

604-818-1101 Cell
(604) 255-1116

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Greer Shipping Ltd.
On Canada's Pacific Coast, Greer Shipping Ltd. is the agent for many well-known liner
companies which provide regularly scheduled services to the Pacific Rim, Central and
South American countries and Australia.
Local Office
600-900 West Hastings Street
Vancouver, B.C. V6C 1E5
604. 891 7447
Hyundai America Shipping Agency

This is one of the world’s largest multi-modal marine transportation companies,
commanding over 119 ships as of January 2002. The fleet includes full container
carriers, LNG carriers, oil tankers, bulk carriers, and others. HMM employs 4,566
personnel - 982 domestic, 1,958 shipboard and 1,626 overseas. THe organization has
three headquarters, 14 overseas subsidiaries and approximately 70 offices and
branches all over the world.
Head Office is in South Korea

Hyundai Merchant Marine Co.,Ltd. 66, Chokson-dong, Jongro-ku Seoul 110-052, Korea
82-2-3706-5114 phone
Local Office:
543 Granville Street Suite 1400
Vancouver, B.C. V6C1X8,
Canada
1-604-601-2900
Island Shipping Ltd.

Island Shipping Limited is a family-owned Nanaimo firm, first established in 1964,
providing ship's agent services at the ports of Nanaimo, Chemainus, and Crofton. Island
Shipping serves as agents and sub-agents for a majority of the major shipping
companies operating at Vancouver Island ports. Through its network, they are able to
represent ship owners at all B.C. ports. ISL Customs Brokers, a division of Island
Shipping, continues to be the innovative leader in providing customs brokerage and
international trade solutions to business. Established in 1964, ISL is a 100% family-
owned Nanaimo firm.
Local and Head Office:

Suite 201 - 335 Wesley Street, Nanaimo, BC, Canada V9R-2T5
Phone: (250) 754-2305 or 1-800-663-3941
Maersk Canada Inc.

With more than 500 container vessels, 1,400,000 containers, and its own terminals,
trucks and trains, Maersk has worldwide coverage. It has offices in more than 125
countries.
Head Office:
Esplanaden 50

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1098 Copenhagen K
Denmark
Phone: +45 3363 3363
Local Office:
1185 West Georgia St.
Suite 1605
Vancouver,BC
V6E 4E6
(604) 687 1530
Maple Shipping
With expertise in the areas of documentation, brokerage, freight forwarding, as well as
agency, Maple Shipping ships sulphur, coal, grain, concentrates, forest products, as well
as a wide variety of project and miscellaneous cargoes (both inbound and outbound).
Head Office:
#1101 - 570 Granville Street
Vancouver, BC, Canada
V6C 3P1
Telephone: (604) 669-6411
Rick Barlow, Vice President

www.mapleship.com
OOCL Inc.
Orient Overseas Container Line (OOCL) is a wholly-owned subsidiary of Orient
Overseas (International) Limited (OOIL), a public company (0316) listed on the Hong
Kong Stock Exchange. OOCL is one of the world's largest integrated international
container transportation, logistics, and terminal companies. As one of Hong Kong's most
recognized global brands, OOCL provides customers with fully-integrated logistics and
containerized transportation services, with a network that encompasses Asia, Europe,
North America and Australasia.
Hong Kong Head Office:

31/F, Harbour Centre 25 Harbour Road Wanchai Hong Kong
Phone (852) 2833 3888
Local Office:
Suite 2250, Harbour Centre, 555 W. Hastings Street,
Vancouver, B.C. V6B 4N6
Phone 604 6894144
Teekay Shipping Corporation

Teekay is an essential marine link in the global energy supply chain, serving the world's
leading oil and gas companies. We connect our customers' upstream oil and gas
production with their downstream refining and distribution

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Local Office:
Suite 2000, Bentall 5
550 Burrard Street
Vancouver, B.C. V6C 2K2
Canada
Tel: (604) 683 3529
Terminals (B.C.) – Chamber of Shipping

Fraser Surrey Docks
Fraser Surrey Docks LP is a modern, multi-purpose marine terminal that has been
serving customers since 1964. Its facility is located in the greater Vancouver area of
Surrey, British Columbia on the Fraser River. It is the largest facility of its kind on the
west coast of North America.
Every year, Fraser Surrey Docks handles over 400 deep-sea vessels up to Panamax
size. Service is provided at seven berths and is supported by 53 hectares (130 acres) of
yard area and six sheds providing 35,850 square meters (386,000 square feet) of
covered storage for weather sensitive cargo. Four-dock gantry cranes with up to 80
metric tons of lifting capacity and one mobile Gottwald harbour crane service container
vessels. A hydraulically operated ramp services barge traffic at a separate berth.
Each year, millions of tons of cargo move through Fraser Surrey Docks and in 2005 the
facility handled over 340,000 TEUs of containers. A significant volume of export
packaged lumber, together with a large volume of steel plate, coil, pipe, wire, rod and
other structural products are imported through our facility each year. Fraser Surrey
Docks also handles many project cargoes and quality ship stevedoring is available
through our wholly owned subsidiary, Pacific Rim Stevedoring.
A large fleet of modern mobile cargo handling equipment is deployed on the terminal
with a variety of special attachments to protect products during handling. Operators are
given specialized training with emphasis placed on cargo care. The equipment is
maintained at the company’s on-site garage and maintenance facility.
Rail connections to the company’s terminal are provided directly by the Burlington
Northern Santa Fe (BNSF) Railway, Canadian National Railway, Canadian Pacific
Railway and Southern Rail of British Columbia. The Fraser River Port Authority has
18,000 feet of its own rail car holding tracks, permitting rail carriers to spot cars adjacent
to the facility.
Fraser Surrey Docks provides technology that enables customers to access information
about their cargo on a real-time basis through the Internet. Our Cargo Management
System (CMSII) is a web-based information system that allows customers and staff to
perform such tasks as book freight, track shipments, plan vessels, view schedules, make
rate inquiries, and create many detailed reports.
Neptune Bulk Terminals

Neptune is owned and operated on behalf of its shareholders, Canpotex Bulk Terminals
Limited, Elk Valley Coal Partnership (operating entity is Elk Valley Coal Corp.), and

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Bunge Canada, and is North America's largest multi-product bulk terminal. Products
include coal, bulk liquids, and dry bulk.
Located west of the Iron Workers' Memorial Second Narrows Bridge in Vancouver's
inner harbour, Neptune Bulk Terminals is a highly efficient operation providing the most
modern loading/unloading services and storage facilities for a variety of bulk
commodities. Neptune has 37 years of bulk terminal experience with a range of services
including rail and vessel coordination and agency services. Neptune is located on CN
trackage, with interswitching access to all major rail carriers in the Lower Mainland of
British Columbia.
• CN Rail
• CP Rail
• BC Rail (CN)
• Burlington Northern Railway
• Southern Railway of BC
• Trans Canada Highway
Ridley Terminals, Inc

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Ridley Terminals Inc. - " A marine terminal providing continuous, high quality and high
performance rail car unloading (on CN line), product storage and vessel loading
services."
Ridley Terminals, Inc. owns and operates the most advanced terminal of its kind, making
it a world leader in the efficient and reliable movement of coal and other bulk
commodities from unit trains onto ships. RTI's highly trained and motivated staff is
committed to minimizing the cost of transporting these commodities. RTI operates
computer-based technology that loads ships at rates to 9,000 tons per hour, and unloads
railcars at 6,000 tph.
The terminal has an annual shipping capacity of 16 million tons, which can be expanded
to 24 million tons. Although part of the throughput is committed, the terminal is available
to all users and operates 24 hours a day.
The terminal was built to provide an export point for vast reserves of metallurgical and
thermal coal in northeastern British Columbia. It is also capable of handling other bulk
commodities. The first ship was loaded in January of 1984.
Vanterm/TSI
Vanterm (operated by TSI - TSI is owned by Orient Overseas International Ltd of Hong
Kong) is a 76-acre, two-berth inner harbour container terminal which boasts five high-
speed dock gantries (four Post-Panamax), a modern fleet of container handling
equipment and a five track on-dock intermodal rail yard.
Terminal expansion plans increased Vanterm's container capacity by the end of 2004
and continue to ensure reliable and timely transportation handling. Vanterm is ISPS
compliant. Vanterms capacity after terminal expansion completed in the spring of 2005 is
350,000 units / 600,000 TEUs.
Deltaport/TSI
Located 35 kilometers south of Vancouver, Deltaport with its Super Post-Panamax dock
gantries, deep water and on-dock intermodal access for two double stack trains
simultaneously can accommodate the largest container vessels in the world. The
terminal is designed to handle the largest container ships afloat and features Super
Post-Panamax container cranes, two berths and advanced computer systems. Deltaport
is ISPS compliant.
Deltaport is the Port of Vancouver's largest container terminal, located at Roberts Bank,
40 kilometres south of Vancouver's inner harbour.
The size of this facility demanded innovation in the ability to shuttle up to three
containers at a time. TSI utilizes a “multi-trailer” system (MTS), which allows one tractor
to pull a three container train between gantries, storage and intermodal yards.
TSI operates Deltaport, the Port of Vancouver's state of the art container facility, under a
long-term lease agreement with the Vancouver Port Authority. Deltaport capacity after
terminal expansion in 2008, will be 750,000 units/1,300,000 TEUs.

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Westshore Terminals
Located in Vancouver (Delta), Westshore Terminals Limited Partnership is Canada's

leading coal export facility and the largest dry bulk terminal on the west coast of the
Americas. It has been an essential link in the coal chain between mines, rail, and end
users for more than 35 years. Shipments regularly go to about 24 countries and bring $2
billion or more of wealth each year to Canada. In 2005, Westshore celebrated its 35th
anniversary and remains the busiest coal export terminal in all of North America.
Port Authorities (B.C.) – Chamber of Shipping

Fraser Port Authority
The Fraser River Port Authority is a federally mandated port authority operating under
the Canada Marine Act. It administers Fraser River Port, a major deep-sea port located
on the main arm of the Fraser River, south of Vancouver, British Columbia.
Fraser River Port begins at the mouth of the Fraser River, south of Vancouver, British
Columbia, and extends along the main arm of the river eastward to the Fraser Valley at
Kanaka Creek and north along the Pitt River to Pitt Lake. The jurisdiction encompasses
270 km of shoreline that border nine different municipalities in the Lower Mainland.
Fraser River Port is fully integrated with global transportation networks, offering a
complete range of services at terminals equipped for efficient container and break bulk
handling. It is the largest auto port in Canada, and offers integrated services for the
coastal forest industry and short-sea shipping.
Annually, 38 million tons of cargo are shipped through Fraser River Port. This volume
has made Fraser River Port the second largest in Canada, generating $2.3 billion in local
economic output and 12,400 direct jobs. Locally, over 350 businesses depend on the
Port and port-related activities.
Key responsibilities
• facilitate trade through the Port's marine terminals

• administer the property within the Port Authority's jurisdiction, which includes
federal and provincial Crown Lands covered by water as well as upland sites
owned by the federal government
• oversee the harbour and maintain the channel
• environmental stewardship
• community involvement
Jurisdiction

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The Port Authority's jurisdiction extends along the first 60 km of the Fraser River,
encompassing 270 km of shoreline. Fraser River Port includes all navigable water within
the harbour boundaries, as well as certain upland sites, foreshore, and water lots within
the Fraser River Port Authority's jurisdiction.
The Port borders nine municipalities along its shores:
• City of Coquitlam
• Corporation of Delta
• Township of Langley
• District of Maple Ridge
• City of New Westminster
• District of Pitt Meadows
• City of Port Coquitlam
• City of Richmond
• City of Surrey
Land administered by the Port Authority on behalf of the federal government accounts
for only four percent of the total waterfront within its jurisdiction.
Nanaimo Port Authority
The Nanaimo Port Authority is located on the east coast of Vancouver Island, 36 nautical
miles west of Vancouver. The Port of Nanaimo provides four deep sea docks,
accommodating vessels drawing up 13.5 m. Complete facilities include warehousing
space, outside storage, container handling crane, and barge loading facilities. The Port
Authority has the mandate to administer, control, and manage the harbour, waters, and
foreshore of the Georgia Strait in an area adjacent to Nanaimo, BC.
Activities
and operations include: Shipping and industry, foreshore recreation and
amenities, marine recreation, property development and management.
North Fraser Port Authority
The North Fraser Harbour services regional cargoes to and from British Columbia's
coastal communities. The harbour is a major link in the transportation of logs cut by the
B.C. coastal forest industry. Even before its inauguration as a federal harbour, it served
as a home to lumber and plywood mills and as a transportation route to mills farther up
the river. It is a major storage area for log rafts which supply raw material to the Fraser
River mills. Products handled include wood fibre, lumber, aggregates, by-products and
iron/steel.
Port North Fraser

7911 Grauer Road
Richmond, British Columbia
Canada, V7B 1N4
Telephone: (604) 273-1866
Website: www.nfpa.ca

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Prince Rupert
The new Fairview Container Terminal will move 500,000 TEUs per year. It is uniquely
designed to efficiently handle the largest concentration of intermodal rail business. As
such, the new container terminal will be North America's purest marine to rail intermodal
transfer facility. The 18 meter (60 foot) extension of the wharf will allow for a berth depth
of 16.75 meters (55 feet), enabling the wharf to easily accommodate the largest
container ships now on the drawing board. Those ships hold up to 12,500 TEUs, making
them up to 22 containers across. The container yard will hold more than 7,000 TEUs and
have space for almost 3,000 in temporary storage. It will also have outlets for
refrigerated containers. Significant support from CN will result in the upgrade and
expansion of the intermodal yard to seven working tracks and six storage tracks, enough
to hold more than 17,000 feet of train. CN will provide full double-stack clearance along
the route and invest in additional rolling stock. Maher Terminals of Canada Corp. will
provide three Super Post Panamax cranes to efficiently handle the world's largest
container vessels.
The vision for the future is the expansion of the terminal to nearly triple the size of the
facility to accommodate an annual capacity of 2 million TEUs to meet the demands of
continued growth in Asia Pacific traffic trade. The project would feature an extension of
the wharf to 800 meters maintaining a 17 meter minimum water depth, increasing the
dock area to 165 acres, and doubling the number of super post-panamax cranes. The
expanded facility would have an on-site storage capacity of 25,000 TEUs and
accommodate the continued growth in regional export traffic anticipated to develop over
the next decade.
Planning and engineering for both Phase 1 and Phase 2 has been completed through
the development planning process to ensure the project planning integrates this eventual
expansion. It is anticipated that work will commence on Phase 2 shortly after the
completion of Phase 1, and construction of the expanded terminal would be complete for
2010.
Vancouver Port Authority
The VPA introduces a customized and innovative model for administration of Port
Vancouver to meet its unique business and operational needs. The VPA will be able to
react more quickly and efficiently to market needs; for example, the time to process land
exchanges, acquisitions and dispositions will be significantly reduced, allowing VPA to
respond to the marketplace in a timely fashion.
The Port of Vancouver encompasses 233 km of coastline in Burrard Inlet and Roberts
Bank.

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Opportunity Assessment for an Inland

Intermodal Container Facility in Kamloops

Prepared by: Satwinder Paul and Nova Woodbury

1. An investigation into the different types of terminals, such as:

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops i

Kamloops Inland Intermodal Container Facility Employment Projections:

General Manager 1 Plant Management and marketing

Potential Local Employment Projections:

Manufacturing Sector 75 Plant expansions and new plants

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops ii

Potential Commodities Volumes

Benefits of an Intermodal Container Facility

An intermodal container facility in Kamloops could:

Challenges to Establishing an Intermodal Container Facility

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops iii

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops iv

Kamloops Indian Band

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops v

Table of Contents ............................................................................................................vi

1.0 Introduction ............................................................................................................... 1

2.0 Intermodal Facilities .................................................................................................. 4

3.0 Literature and Survey Findings ............................................................................... 11

4.0 Current Container Logistics ..................................................................................... 17

5.0 Kamloops Role in Intermodal Strategy ................................................................... 19

6.0 Intermodal Container Facility Locations in Kamloops.............................................. 26

7.0 Intermodal Container Facility Opportunity in Kamloops........................................... 30

8.0 Next Steps............................................................................................................... 35

9.0 References .............................................................................................................. 36

10.0 Survey Participants ............................................................................................... 39

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops vi

Transportation has played an important role in the historical development of

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops 1

Container traffic through the Port of Vancouver is expected to grow by 7% per

1.1 Project Objectives

The objective of this project is to assess the opportunity for an intermodal

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops 2

1. An investigation into the different types of intermodal terminals, such as:

3. Identifying and assessing the suitability of possible intermodal facility locations

4. Identifying what is currently happening and form an understanding of the

5. Interview industry stakeholders such as Weyerhaeuser, Tolko Industries,

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops 3

2.1 Types of Intermodal Facilities

Freight terminals can be categorized into three types:

2. Intramodal terminals consist of facilities where cargo changes carriers or

3. Intermodal freight terminals have equipment and facilities designed to

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops 4

(i) Modes: By employing combinations of the above five distinguishing features,

(ii) Types of Cargo: One of the differentiating properties of an intermodal

1. Containerized – This category consists of cargo shipped in various types

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops 5

2. Break-bulk – This category describes non-containerized freight shipped in

The inter-relationships between the types of carriers in intermodal systems have

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops 6

2.2 Common Types of Intermodal Terminals

The nature of TOFC/COFC freight greatly influences the location of TOFC/COFC

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops 7

TOFC/COFC terminals, which are medium to large facilities, are attached to

4. Truck-Rail Reload Facilities

The three types of reload facilities are:

5. Liquid Bulk Terminals

7. Waterway Intermodal Terminals

Opportunity Assessment for Inland Intermodal Container Facility in Kamloops 8

Benefits of an inland container facility include the following: