CN, the Montreal Port Authority (MPA) and the two companies that operate the port’s three key container terminals announced today two level of service agreements (LSAs) that will drive a strong focus on supply chain efficiencies.
The two agreements - one signed by CN, the port authority and Montreal Gateway Terminals Partnership (MGT), which operates the CAST and RACINE terminals, and another signed by CN, the port authority and Termont Montreal—complement a framework agreement that CN and the MPA reached in September 2010. Under last fall’s agreement, CN and the port decided to develop a best-practices vision for the gateway’s supply chain, improve productivity, and leverage these gains to increase their share of global container traffic.
The CN-MPA-terminal operator agreements establish key performance indicators to improve the fluidity of the gateway. These include specific metrics for container dwell times at terminals, rail-car availability, rail on-time performance, and vessel performance.
Claude Mongeau, CN president and chief executive officer, said: “CN is pleased to have reached these important service agreements with the key players in the Port of Montreal container business. We all have a mutual interest in supporting our North American import and export customers and the ocean shipping lines. Clear, daily performance metrics will drive continuous improvement in performance and help expand the Port of Montreal’s business.”
Sylvie Vachon, president and chief executive officer of the MPA, said: “Our new service agreements reflect the commitment of the port’s key stakeholders to supply chain collaboration and to improved efficiency and productivity of our container processing systems. This bodes well for the future and will help strengthen the Port of Montreal’s competitiveness.”
“Our innovative agreement with CN and the MPA will help us deliver a better service to the ocean carriers and their customers,” said Kevin Doherty, chief executive officer of MGT. “The establishment of a service-level agreement recognizes the interdependency of our businesses. This co-dependency makes it imperative that we continue working collaboratively as we develop our services to our mutual clients.”
Roger Carr’, general manager of Termont Montreal, said: “CN’s strategic focus on deeper customer engagement is a welcome development. We will both benefit from faster traffic flows as we continue to look for the next level of efficiencies in our joint operations.”