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Character and pervasiveness of transport competition in the movement of commodities from Great Vancouver… Gray, John Sinclair 1969

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THE CHARACTER AND PERVASIVENESS OF TRANSPORT COMPETITION IN THE MOVEMENT OF COMMODITIES FROM GREATER VANCOUVER ORIGINS TO BRITISH COLUMBIA DESTINATIONS by JOHN SINCLAIR GRAY B.A. Sc., U n i v e r s i t y of B r i t i s h Columbia, 1943  A THESIS SUBMITTED IN PARTIAL FULFILMENT OF THE REQUIREMENTS FOR THE DEGREE OF MASTER OF BUSINESS ADMINISTRATION i n the Faculty of COMMERCE AND BUSINESS ADMINISTRATION We accept t h i s t h e s i s as conforming to the required standard  THE UNIVERSITY OF BRITISH G#LUMBIA A p r i l , 1969  In  presenting  an  advanced  the I  Library  further  for  degree shall  agree  scholarly  by  his  of  this  written  this  thesis  in  at  University  the  make  that  it  purposes  for  freely  permission may  representatives. thesis  partial  be  It  of  British  available for  by  the  understood  gain  for  extensive  granted  is  financial  f u l f i l m e n t of  shall  reference  Head  be  requirements  Columbia,  copying  that  not  the  of  and  of my  copying  I agree  this  of  allowed without  Commerce and B u s i n e s s A d m i n i s t r a t i o n  The U n i v e r s i t y o f B r i t i s h V a n c o u v e r 8, Canada  Columbia  thesis or  publication  .permission.  Department  that  Study.  Department or  for  my  ABSTRACT The t r a n s p o r t a t i o n networks i n the province of B r i t i s h Columbia are described with reference to the general economic s e t t i n g and the geographical and h i s t o r i c a l background.  In t u r n , r a i l ,  water, and road  transport networks are described with b r i e f mention of a i r and p i p e l i n e transport. The study of competition i n the t r a n s p o r t a t i o n industry i s undertaken w i t h the primary basis being a series of interviews with representatives of shippers, c a r r i e r s , government departments, and other organisations.  The character and pervasiveness of competition between  the modes of p u b l i c f r e i g h t t r a n s p o r t a t i o n and of competition among c a r r i e r s w i t h i n those modes are discussed i n some d e t a i l .  Inter-modal competition  i s examined i n the l i g h t of h a l f a dozen factors which influence the shipper's choice of mode.  An approximate rank order of shipper's modal  preference for these factors i s presented.  Intra-modal competition i s  examined i n terms of a dozen factors which influence the shipper's choice of the p a r t i c u l a r c a r r i e r , f i v e of these factors being common to the modal choice. The extent of p r i v a t e t r a n s p o r t a t i o n systems w i t h i n the province (mainly r a i l and road) i s described.  The a n c i l l a r y modes, bus transporta-  t i o n and mail are analyzed b r i e f l y . Observations and conclusions include a d i s c u s s i o n of current trends i n the major modes, and the extent of monopolies and o v e r - s e r v i c e , p a r t i c u l a r l y i n the t r u c k i n g i n d u s t r y . Comments are offered on the l e v e l of s o p h i s t i c a t i o n i n the t r a n s p o r t a t i o n industry i n the province and. the opportunities f o r a more i n t e n s i v e market-oriented approach.  TABLE OF CONTENTS CHAPTER  PAGE Abstract Table of Contents  i  L i s t of Tables  iv  L i s t of Appendices  v  L i s t of Maps  vi  L i s t of Abbreviations Acknowledgements I.  II.  III.  v i i viii  INTRODUCTION  1  1.1  Purpose of the Study  1  1.2  Economic Setting  1  1.3  Method of the Study  3  STRUCTURE OF THE TRANSPORTATION NETWORKS IN BRITISH COLUMBIA  5  2.1  Geographical and H i s t o r i c a l Setting  5  2.2  R a i l Transportation  7  2.3  Water Transportation  11  2.4  Road Transportation  12  2.5  A i r Transportation  13  2.6  P i p e l i n e Transportation  14  2.7  Extent of Choice of Mode and C a r r i e r  15  COMPETITIVE FACTORS IN TRANSPORTATION  17  3.1  Intra-modal  Competitive Factors  17  3.2  Inter-modal  Competitive Factors  18  ii CHAPTER IV.  PAGE INTER-MODAL COMPETITION IN BRITISH COLUMBIA 4.1  Inter-modal Competitive Factors: Rank Order of Shipper's Modal Preference  V.  19  19  4.2  Time i n Transit  4.3  Freight Charges  23  4.4  Frequency of Service  26  4.5  Door-to-door Service  27  4.6  Loss and Degree of Damage  31  4.7  R e s t r i c t i o n of Maximum Size and Weight  33  4.8  Competition Between R a i l and Road Transport ...  36  INTRA-MODAL COMPETITION IN BRITISH COLUMBIA  21  39  5.1  Time i n Transit  39  5.2  Freight Charges  39  5.3  Door-to-door Service  41  5.4  Frequency of Service  41  5.5  Loss and Damage  41  5.6  On-time Performance  42  5.7  A v a i l a b i l i t y of Standard Equipment  43  5.8  A v a i l a b i l i t y of Special Equipment  44  5.9  Shipment Tracing  49  5.10  Promptness of Claims Settlement  49  5.11  Information Service  49  5.12  Competence of S o l i c i t o r s  50  iii CHAPTER VI. VII. "VIII.  PAGE PRIVATE TRANSPORTATION  51  OTHER MODES  52  OBSERVATIONS AND CONCLUSIONS  54  8.1  Adequacy of Competitive Factors Examined  54  8.2  L i m i t a t i o n s of the Study  54  8.3 Modal Trends  55  8.4  Monopolies and Over-service  57  8.5  Level of S o p h i s t i c a t i o n  58  8.6  Marketing O r i e n t a t i o n  60  8.7  Existence of Vigorous Competition  61  FOOTNOTES  63  BIBLIOGRAPHY  65  APPENDIX  66  iv LIST OF TABLES TABLE  PAGE  2.1  AERODROMES IN BRITISH COLUMBIA AND CANADA  14  2.2  REGIONS IN REGIONAL INDEX OF BRITISH COLUMBIA  15  3.1  INTRA-MODAL COMPETITIVE FACTORS  17  (Factors Considered by Shippers When Selecting Carriers) 4.1  INTER-MODAL COMPETITIVE FACTORS: RANK ORDER OF SHIPPER'S MODAL PREFERENCE  19  V  LIST OF APPENDICES APPENDIX 1  PAGE TABLE OF ECONOMIC AREAS IN BRITISH COLUMBIA SHOWING NUMBER OF SCHEDULED CARRIERS ACTIVE IN EACH MODE OF TRANSPORT  66  vi  LIST OF MAPS MAP 1  PAGE PRINCIPAL ROUTES OF RAIL TRANSPORT IN BRITISH COLUMBIA  2  PRINCIPAL ROUTES OF WATER TRANSPORT IN BRITISH COLUMBIA  3  70  PRINCIPAL ROUTES OF ROAD TRANSPORT IN BRITISH COLUMBIA  4  69  71  PRINCIPAL ROUTES OF AIR TRANSPORT IN BRITISH COLUMBIA  72  LIST OF ABBREVIATIONS Canadian National Railways Canadian P a c i f i c Railway Canadian P a c i f i c Transport Company P a c i f i c Great Eastern Railway Pounds per square inch gauge  viii ACKNOWLEDGEMENT S The author i s most' appreciative of the e x c e l l e n t cooperation of the numerous representatives of B r i t i s h Columbia shippers, c a r r i e r s , government departments, and other organisations i n scheduling and holding interviews and providing supplementary information which formed the basis of t h i s t h e s i s .  He i s p a r t i c u l a r l y g r a t e f u l f o r the patient advice and  guidance of Dr. Harry L. Purdy, of the Faculty of Commerce and Business A d m i n i s t r a t i o n , who acted as thesis chairman.  CHAPTER I INTRODUCTION 1.1  Purpose of the Study B r i t i s h Columbia i s one of the r i c h e s t provinces i n Canada,  p r i m a r i l y because of i t s abundant n a t u r a l resources.  These resources are  of various k i n d s , and are widely d i s t r i b u t e d throughout the e n t i r e area of the province.  Their development and e x t r a c t i o n are h i g h l y dependent  on t r a n s p o r t a t i o n f a c i l i t i e s . This study w i l l examine the t r a n s p o r t a t i o n networks as they now e x i s t i n the province, and w i l l focus a t t e n t i o n on the competitive s t r u c t u r e of the t r a n s p o r t a t i o n i n d u s t r y . An answer w i l l be sought to the question "does vigorous inter-modal and intra-modal competition e x i s t i n the t r a n s p o r t a t i o n of commodities from metropolitan Vancouver to outl y i n g areas i n B r i t i s h Columbia?" 1.2  Economic S e t t i n g Canada has an open economy, h e a v i l y dependent on exports and imports.  Over about the past 15 years, Canadian exports have amounted to 20 to 25 percent of gross n a t i o n a l product, and have been approximately equal to Canadian imports.  In the United States, which i n absolute terms i s the  greatest t r a d i n g n a t i o n i n the world, exports and imports as proportions of gross n a t i o n a l product have been much smaller: 5 to 6 percent f o r exports, and 4 to 5 percent for imports.  1  In Canada, export commodities  are predominantly new materials or products of primary manufacture, and import commodities are predominantly products of secondary manufacture.  - 2 There i s considerably less secondary manufacturing w i t h i n Canada than i n other i n d u s t r i a l i s e d nations i n the world of s i m i l a r economic s t a t u r e . B r i t i s h Columbia e x h i b i t s the same economic c h a r a c t e r i s t i c s as Canada as a whole, but with even greater emphasis on production of raw materials and semi-finished products, and the low l e v e l of manufacturing.  secondary  The economy of B r i t i s h Columbia i s based p r i m a r i l y on  the e x t r a c t i v e i n d u s t r i e s — l o g g i n g , mining, petroleum, f i s h i n g , and agriculture.  There i s also a considerable amount of primary manufac-  t u r i n g , notably i n the f o r e s t industry: lumber, plywood, pulp, and paper, and i n the food processing and packaging i n d u s t r y . Secondary manufacturing i s confined l a r g e l y to producing various supplies to support the extractive industries.  Except for food, beverages, and some b u i l d i n g m a t e r i a l s ,  most consumer commodities are imported from other provinces i n Canada, from the United States, or from f o r e i g n sources. 2 B r i t i s h Columbia covers a large area (366,255 square miles ), but more than h a l f of the population of the province i s concentrated i n a s i n g l e area at the extreme south-west which covers less than h a l f of one 3 percent of the area of the province.  This area includes Vancouver,  North Vancouver, West Vancouver, Burnaby, Richmond, D e l t a , and the Lower Fraser V a l l e y east to Hope, and i s commonly known as the "Lower Mainland". The f r e i g h t t r a n s p o r t a t i o n networks i n B r i t i s h Columbia are h e a v i l y influenced by deep-sea t r a f f i c through the Port of Vancouver, handling much of the trade f o r a l l of western Canada.  There i s a s u b s t a n t i a l l e v e l  of c o a s t a l shipping, both w i t h i n p r o v i n c i a l waters and beyond the province to Alaska and the United States.  Vancouver i s a terminus for two trans-  c o n t i n e n t a l Canadian r a i l r o a d s , the C.N.R. and C.P.R., and North Vancouver i s a terminus f o r a large p r o v i n c i a l r a i l r o a d , the P.G.E.  Vancouver i s  - 3 on the Trans-Canada Highway and i s a f o c a l point f o r highways which cover most of the province.  Vancouver has an i n t e r n a t i o n a l a i r p o r t capable of  handling the l a r g e s t commercial a i r c r a f t f l y i n g today. The general economy of B r i t i s h Columbia requires extensive transp o r t a t i o n f a c i l i t i e s to serve two b a s i c functions: 1.2.1  the movement of construction m a t e r i a l s , raw m a t e r i a l s , operating s u p p l i e s , and consumer goods to the areas of production  1.2.2  the movement of raw materials and semi-finished products to points of export from the province  This study i s concerned to some extent with both f u n c t i o n s , but mainly w i t h the former. 1.3  Method of the Study The main source of information for t h i s study was a s e r i e s of  interviews conducted by the author with shippers i n the Lower Mainland area who make regular shipments throughout the province.  The shippers  selected d i d not c o n s t i t u t e a random sample of a l l shippers, but instead were generally the larger and more successful manufacturers and d i s t r i butors i n a wide v a r i e t y of i n d u s t r i e s . As a group, the shippers  inter-  viewed send shipments to v i r t u a l l y every population centre i n B r i t i s h Columbia, use every a v a i l a b l e mode of transport, and handle many d i f f e r e n t commodities i n a wide range of weight, s i z e , and value.  As a cross check  on the v a l i d i t y of information obtained from shippers, interviews were also conducted with several c a r r i e r s , p a r t i c u l a r l y the r a i l r o a d s and the larger and more successful motor c a r r i e r s .  Interviews were also h e l d  with representatives of other organisations concerned with the transport a t i o n industry, i n c l u d i n g a p u b l i s h e r , a r a t e bureau, trade organisations,  and o f f i c i a l s of the p r o v i n c i a l government Department of Highways, Department of Commercial Transport, Department of I n d u s t r i a l Development, Trade, and Commerce, and the Public U t i l i t i e s Commission.  CHAPTER I I STRUCTURE OF THE TRANSPORTATION NETWORKS IN BRITISH COLUMBIA 2.1  Geographical and H i s t o r i c a l S e t t i n g B r i t i s h Columbia i s the most westerly province i n Canada, bounded,  i n general terms, on the south by the 49th p a r a l l e l and the United States; on the north by the 60th p a r a l l e l and the Yukon and North West T e r r i t o r i e s ; on the west by the P a c i f i c Ocean and the southern t i p of Alaska; on the east by the 120th meridian and the summit l i n e of the Rocky Mountains (intersecting  at the 54th p a r a l l e l ) and the province of A l b e r t a . B r i t i s h  Columbia i s generally mountainous and has an extensive cover of coniferous forest. There are numerous ranges of mountains i n the province, mostly p a r a l l e l to the c o a s t l i n e and to each other.  The Coast Range and the  Rocky Mountains are c l e a r l y i d e n t i f i a b l e and extend from the United States to Alaska and the Yukon; other major ranges include the Columbia, Cassiar, Omineca, S t i k i n e , Skeena, Babine, B u l k l e y , Cariboo, P u r c e l l , Monashee, and Cascade.  Selkirk,  The province i s r i c h i n mineral deposits and has  large p o t e n t i a l f o r development of h y d r o - e l e c t r i c i t y . F i f t y - e i g h t percent of the area of B r i t i s h Columbia i s covered by 4 commercial f o r e s t  w i t h four d i s t i n c t regions: coast r e g i o n , subalpine  r e g i o n , Columbia region, and mountain r e g i o n .  There are some pockets of  a r c t i c and a l p i n e tundra, p a r t i c u l a r l y i n the northern part of the province and i n the highest e l e v a t i o n s i n the Coast Range and the Rocky Mountains. Only about 4 percent of the area of the province i s s u i t a b l e for a g r i c u l t u r e  - 6 and about h a l f of t h i s i s under c u l t i v a t i o n . g r a i n , f r u i t , b e r r i e s , and vegetables.  A g r i c u l t u r a l crops include  There are several areas of d a i r y  farming and some f a i r l y large areas of c a t t l e ranching. There are generally three c l i m a t i c regions:^ P a c i f i c , forming about 5 percent of the area of the province, along the coast, the warmest region w i t h the average temperature i n the coldest month over 32°F, humid, w i t h abundant r a i n f a l l , e s p e c i a l l y i n winter; South Mountain, almost onet h i r d of the area of the province, generally i n the south and  south-east,  warmer mountain, v a l l e y , and plateau country, with warm summers; and North Mountain, almost two-thirds of the area of the province, generally i n the north and north-west,  colder mountain, v a l l e y , and plateau country,  w i t h c l i m a t i c conditions varying more with a l t i t u d e than w i t h l a t i t u d e . As a r e s u l t of these geographical features, B r i t i s h Columbia today i s a rather sparsely s e t t l e d area w i t h population centres at i s o l a t e d l o c a t i o n s along the coast, on Vancouver I s l a n d , the Gulf Islands, and the Queen Charlotte Islands, and i n numerous v a l l e y s , notably the Fraser R i v e r , the Columbia R i v e r , the Kootenay R i v e r , the Skeena R i v e r , the Peace River and the Okanagan V a l l e y . Most of the population i s i n the southern h a l f of the province. The t r a n s p o r t a t i o n networks i n B r i t i s h Columbia began with water transport.  The e a r l i e s t recorded e x p l o r a t i o n of the coast of Alaska and  northern B r i t i s h Columbia was made by the Russian, Vitus Bering, i n 1741, the year of h i s second great voyage. but there i s no record of landings.  Spanish explorers s a i l e d the coast, In 1778, Captain James Cook made  several landings along the coast of B r i t i s h Columbia during h i s t h i r d great voyage. Columbia.  Cook's voyage marked the beginning of the fur trade i n B r i t i s h Captain George Vancouver, who had been one of Cook's o f f i c e r s ,  - 7spent three years exploring and mapping the coast, beginning i n 1792J The f i r s t overland e x p l o r a t i o n was made by Alexander MacKenzie, who a r r i v e d at B e l l a Coola i n 1793.  Simon Fraser explored the r i v e r that  bears h i s name during 1808. White settlement i n B r i t i s h Columbia began i n the e a r l y 1800's and was supported e n t i r e l y by water t r a n s p o r t .  Communities were estab-  l i s h e d on the coast at V i c t o r i a , Nanaimo, New Westminster, and Vancouver. Land transport was l i m i t e d to horseback and pack animals. p u r s u i t s were f u r - t r a p p i n g and logging.  The e a r l y  The North West Company and the  Hudson's Bay Company opened trading posts f o r the fur trade and a s s i s t e d i n the e x p l o r a t i o n and development of the province. In 1849, Vancouver Island was made a B r i t i s h Crown Colony.  In  1858, placer gold was discovered i n the sand bars of the Fraser R i v e r , precipitating  a massive gold rush.  In 1858, the mainland was made a  B r i t i s h Crown Colony, recognising the.49th p a r a l l e l as the southern boundary which had been e s t a b l i s h e d by the Oregon Treaty w i t h the Americans g  i n 1846.  The two colonies were u n i t e d i n 1866.  The l i m i t of navigation up the Fraser River was about 115 miles from the coast.  Yale was e s t a b l i s h e d at t h i s point and became the t e r -  minus of the fur brigade from the i n t e r i o r of the province, and a supply centre f o r the placer miners.  Between 1861 and 1864, the monumental task  of b u i l d i n g the Cariboo Wagon Road was completed--extending  from Yale  through the Fraser Canyon and north to Soda Creek, a distance of more than 200 m i l e s . 2.2 R a i l Transportation (See Map 1 f o r p r i n c i p a l present r a i l routes.) The Confederation of Canada under the B r i t i s h North America Act of  - 8 1867 d i d not include B r i t i s h Columbia, but i t d i d include Nova Scotia and New Brunswick who joined on the promise of construction of an Interc o l o n i a l Railway l i n k i n g H a l i f a x with c e n t r a l Canada.  This l i n k was  completed i n 1876. Fear of annexation by the United States was the spur 9 that prompted Canadian Government agreement to an important condition of B r i t i s h Columbia's entry into Confederation i n 1871, namely that: The Government of the Dominion undertake to secure the commencement simultaneously, w i t h i n two years from the date of the Union, of the c o n s t r u c t i o n of a railway from the P a c i f i c towards the Rocky Mountains, and from such point as may be selected, east of the Rocky Mountains, towards the P a c i f i c , to connect the seaboard of B r i t i s h Columbia with the railway system of Canada; and f u r t h e r , to secure the completion of such railway w i t h i n ten years from the date of the Union. As part of a National P o l i c y f o r economic development announced i n 1879, the Federal Government i n 1880 contracted w i t h a syndicate, l a t e r known as the Canadian P a c i f i c Railway Company, to extend the transc o n t i n e n t a l railway to the west coast.  This l i n k was completed to tidewater  at Port Moody (adjacent to Vancouver) i n 1885.^ In the 1890's, there was a great deal of railway construction a c t i v i t y i n Canada, i n c l u d i n g b u i l d i n g of the Grand Trunk P a c i f i c Railway from Winnipeg to Edmonton and the P a c i f i c coast at Prince Rupert.  The  Canadian Northern Railway was authorised to continue i t s l i n e westerly from Edmonton to the P a c i f i c coast at Vancouver.  Upon completion o f t h i s con-  s t r u c t i o n , B r i t i s h Columbia had three major r a i l lines.'''''' Following a Railway Inquiry Commission i n 1916, the Canadian National Railway system was formed i n 1923, absorbing the Grand Trunk, the Canadian Northern, the I n t e r c o l o n i a l , and a number of smaller bankrupt 1 mes. The C.N.R. today operates l i n e s i n Newfoundland, and from H a l i f a x  - 9 through Central Canada to Edmonton and Jasper, and enters B r i t i s h Columbia through the Yellowhead Pass. branches north and south.  I t runs west to Red Pass Junction and then  The north branch follows the Fraser River to  Prince George and then runs along the Bulkley River and Skeena River to Prince Rupert.  The south branch follows the North Thompson River to  Kamloops, runs along the Thompson River to Lytton, and f i n a l l y along the Fraser River to Vancouver. The C.P.R. today operates l i n e s from H a l i f a x through c e n t r a l Canada to Calgary and Banff and enters B r i t i s h Columbia through the K i c k i n g Horse Pass.  I t runs to Golden, Revelstoke, and Kamloops, and then p a r a l l e l s the  C.N.R. to Vancouver. Another major railway i n B r i t i s h Columbia i s the P a c i f i c Great Eastern.  The P.G.E. was incorporated i n 1912 w i t h p r i v a t e c a p i t a l and a  p r o v i n c i a l charter to construct and operate a railway from Vancouver along Howe Sound and northeasterly to a j u n c t i o n w i t h the Grand Trunk P a c i f i c 13 Railway at Prince George.  Operation began from North Vancouver to  Horseshoe Bay (11 miles) i n 1914.  Construction was w e l l under way on an  extension from tidewater at Squamish to Quesnel (347 miles) when the railway went bankrupt.  The p r o v i n c i a l government had guaranteed the bonds  and upon the bankruptcy became r e l u c t a n t owners of the P.G.E. i n 1918. extension to Quesnel was completed i n 1921.  The  Track from North Vancouver to  Horseshoe Bay was l i f t e d , but the railway continued to operate i n an i n d i f f e r e n t fashion from Squamish to Quesnel and became f a m i l i a r l y known as the railway that s t a r t e d nowhere and ended nowhere.  Debts continued to  p i l e up. However, i n 1949 an ambitious new phase i n the development of the P.G.E. was launched, a phase characterised by new construction and  - 10 modernisation.  The l i n e was extended from Quesnel to Prince George (81  m i l e s , completed i n 1952)  connecting with the C.N.R. at Prince George.  It was extended from Squamish to North Vancouver (40 m i l e s , completed i n 1956)  connecting with the C.N.R., C.P.R., B.C. Hydro and Power A u t h o r i t y ,  and the Great Northern R a i l r o a d .  Further extensions were made from Prince  George to Chetwynd (193 miles) then f o r k i n g to Fort St. John (69 miles) and to Dawson Creek (61 miles) ( a l l completed i n 1958) .  Next came the  Mackenzie Trackage extension--to serve the south end of the Peace River Reservoir (23 m i l e s , completed i n 1966), and then the f i r s t part of the Takla Lake Extension (Odell to Fort St. James, 75 m i l e s , completed i n 1967). Planned extensions are Fort St. James to Takla Lake (73 miles) and Fort St. John to Fort Nelson (200 m i l e s ) . l o c a t i o n phase.  The modernisation  These are now i n the survey and  program has included conversion to  d i e s e l locomotives, use o f s e l f - p r o p e l l e d passenger cars, and i n s t a l l a t i o n of a microwave communication system with very high frequency radio d i s patching and r e p o r t i n g of t r a i n s . There are 36 i n d u s t r i a l railways i n the province, with a t o t a l 14 mileage of main l i n e and sidings of about 364 miles.  Most of these  railways are in-plant f o r pulp m i l l s , smelters, chemical p l a n t s , and an explosives f a c t o r y , and are very short.  The largest system i s operated  by B r i t i s h Columbia Hydro and Power Authority with a network of l i n e s i n the Greater Vancouver area and extending to Huntingdon and C h i l l i w a c k ; the t o t a l length of track i n t h i s system i s 112 m i l e s .  Canadian Forest Products  Limited operates a 110 mile logging railway i n i t s Nimpkish V a l l e y d i v i s i o n , and Crown Zellerbach Canada Limited operates a 26 mile railway i n i t s Ladysmith d i v i s i o n .  - 11 2.3 Water Transportation (See Map 2 for p r i n c i p a l present water routes) The oldest form of f r e i g h t movement i n B r i t i s h Columbia i s water t r a n s p o r t a t i o n f o r both deep-sea vessels and c o a s t a l v e s s e l s . The e a r l i e s t vessels were s a i l i n g s h i p s , followed by steamships and motor v e s s e l s . Vancouver i s now a major seaport w i t h c a l l s  by deep-sea vessels from a l l over  the world, notably the United States, the Orient, A u s t r a l i a , and Europe. Large q u a n t i t i e s of l o g s , lumber, plywood, pulp, paper and mine ore concentrates are loaded f o r export at numerous other deep-sea ports along the coast of the province. Water t r a n s p o r t a t i o n w i t h i n the province i s l a r g e l y i n the form of loads towed by tug-boats, these loads c o n s i s t i n g of log booms and barges of various s i z e s and shapes to handle many d i f f e r e n t types of commodities. 15 Upwards of 700 tug-boats are i n regular s e r v i c e on the coast  with a  barge f l e e t numbering between 1600 and 1700. P r a c t i c a l l y a l l of the bulk materials moving by water along the coast are c a r r i e d by barges.  Of the  general cargo t r a f f i c , about 25 percent i s c a r r i e d on barges, and the r e s t i n conventional v e s s e l s . The p r o v i n c i a l government operates an extensive f e r r y s e r v i c e on the coast, the main runs being Tsawwassen Terminal (south of Vancouver) to Swartz Bay (on Vancouver I s l a n d ) , Horseshoe Bay to Nanaimo, Tsawwassen and Swartz Bay to the Gulf Islands, and Horseshoe Bay to Bowen Island and the Sechelt Penninsula.  (The p r o v i n c i a l government also operates  numerous f e r r i e s across inland lakes and r i v e r s as required along the routes of important highways.)  During the summer months only, Canadian  National Steamships provides f e r r y s e r v i c e from Vancouver to Prince Rupert and points i n Alaska.  The prominent privately-owned water c a r r i e r s are  Canadian P a c i f i c Steamship, w i t h f e r r y s e r v i c e from Vancouver to Nanaimo,  - 12 and r a i l - c a r barge s e r v i c e from Vancouver to Vancouver I s l a n d ; Northland Navigation, operating four weekly routes from Vancouver to Vancouver Island and Prince Rupert; and Island Tug and Barge and Coast F e r r i e s , both c a l l i n g at communities on and near northern Vancouver I s l a n d . 2.4 Road Transportation (See Map 3 f o r p r i n c i p a l present road routes.) The Cariboo Wagon Road was i n use f o r more than twenty years before regular r a i l s e r v i c e was f i r s t e s t a b l i s h e d i n B r i t i s h Columbia.  There  were other road routes i n the province, but horses and oxen were no match for the r a i l w a y steam engines.  For many years, long-haul inland f r e i g h t  t r a f f i c was very predominantly c a r r i e d by r a i l .  Road networks gradually  grew up r a d i a t i n g from r a i l w a y s t a t i o n s and c o a s t a l docks.  Trucks driven  by i n t e r n a l combustion engines appeared i n small numbers i n the 1920's. The trucks were not very r e l i a b l e , they were low-powered, and they could carry only small loads on the bad roads. share of f r e i g h t t r a f f i c .  R a i l continued to hold the l i o n ' s  Nevertheless, t r u c k i n g gradually came to be  recognised as the accepted mode of transport f o r l o c a l d i s t r i b u t i o n .  As  the trucks improved, the demand f o r roads increased and the road network was gradually extended.  In recent years, there have been vast improvements  i n the endurance, c a r r y i n g c a p a c i t y , and speed of road v e h i c l e s , as w e l l as i n the extent and q u a l i t y of the roads.  Road transport has expanded  accordingly. With the exception of two small areas where roads are now under c o n s t r u c t i o n ( A l t a Lake to L i l l o o e t , about 83 m i l e s , along the P.G.E., and part of the route between McBride and Prince George, about 25 m i l e s , along the C.N.R.), there are now v i r t u a l l y no l o c a t i o n s i n the province served  - 13 by r a i l that are not also served by road.  On the other hand, there are  today many areas i n B r i t i s h Columbia that are served by road but not by rail. 2.5 A i r Transportation (See Map 4 f o r p r i n c i p a l present a i r routes.) A i r t r a n s p o r t a t i o n , of course, i s of recent o r i g i n .  However,  B r i t i s h Columbia, with d i f f i c u l t access to so many areas, has been prominent as the scene f o r many " b u s h - p i l o t " operations.  The mountainous,  forested areas are f o r b i d d i n g , but the abundant inland lakes and numerous stretches of sheltered c o a s t a l water have provided safe landing and takeo f f f a c i l i t i e s a l l over the province.  Small a i r c r a f t have been widely used  for c a r r y i n g prospectors, surveyors, t i m b e r - c r u i s e r s , mechanics, hunters, and fishermen, and t h e i r s u p p l i e s , throughout the province. B r i t i s h Columbia has also many l a n d i n g - f i e l d s .  The t o t a l number  of land and water aerodromes i n the province i s nearly 20 percent of a l l 16 the aerodromes i n Canada.  Table 2.1 l i s t s aerodromes operated by the  Federal Department of Transport, m u n i c i p a l i t y , or p r i v a t e operators, both for B r i t i s h Columbia and f o r Canada. In s p i t e of the large number of aerodromes i n the province, the volume of a i r f r e i g h t i s not very l a r g e . Many of the aerodromes are quite small and are seldom used.  Of the t o t a l of 298 i n B r i t i s h Columbia, at  l e a s t 98 are operated by p r i v a t e i n d i v i d u a l s , ranches, or r e s o r t s (or by no one i n p a r t i c u l a r ) , or are for emergency use only.  Only 22 of the land  aerodromes have a i r s t r i p s longer than one m i l e , and only 15 of these carry r e g u l a r l y scheduled t r a f f i c .  While most of the water aerodromes have w e l l  over three miles of useable length, they are a c t u a l l y used by only f a i r l y small pontoon a i r c r a f t .  - 14 TABLE 2.1 AERODROMES IN BRITISH COLUMBIA AND CANADA B r i t i s h Columbia  Canada  Licenced Aerodromes Heliports  12  34  Water  64  385  Land  44  342  5  8  Water  52  244  Land  119  494  2  57  298  1564  Unlicenced Aerodromes Heliports  Military  Aerodromes  Totals 2.6 P i p e l i n e Transportation  Long distance p i p e l i n e s are r e l a t i v e l y new to B r i t i s h Columbia and at present are l i m i t e d to carriage of petroleum products. They transport a s i g n i f i c a n t proportion of the t o t a l ton-mileage of f r e i g h t i n i n t e r - c i t y t r a f f i c , and therefore modify carriage by the other modes of transport. The i n t e r p r o v i n c i a l Trans Mountain O i l Pipe Line enters B r i t i s h Columbia through the Yellowhead Pass, and c a r r i e s A l b e r t a crude o i l and condensates to Vancouver and Washington State; i t also c a r r i e s r e c e i p t s of crude o i l and condensates from the p r o v i n c i a l Western P a c i f i c Crude O i l and Products P i p e l i n e o r i g i n a t i n g i n the Fort S t . John area.  Westcoast Transmission  c a r r i e s n a t u r a l gas from Fort Nelson and Fort S t . John to the i n t e r n a t i o n a l boundary at Huntingdon, and supplies the Inland Natural Gas d i s t r i b u t i o n system (Kamlodps-Salmon Arm-Okanagan V a l l e y - T r a i l - N e l s o n ) and the B.C.  - 15 Hydro and Power Authority d i s t r i b u t i o n system, (Vancouver and the lower Fraser V a l l e y ) .  The A l b e r t a Natural Gas Transmission l i n e cuts across  the south-east corner of the Province, carrying n a t u r a l gas from A l b e r t a to the United States, and supplying the l o c a l communities of Fernie, Cranbrook, Kimberley, Skookumchuck, and Creston.  A l l of these p i p e l i n e  systems have been completed since 1953. 2.7  Extent of Choice of Mode and C a r r i e r The Bureau of Economics and S t a t i s t i c s of the p r o v i n c i a l  government  Department of I n d u s t r i a l Development, Trade, and Commerce has developed a Regional Index of B r i t i s h Columbia. ^ 1  The province i s divided into ten  regions ( s i m i l a r to the census d i v i s i o n s used by the Dominion Bureau of S t a t i s t i c s ) as l i s t e d i n Table 2.2. TABLE 2.2 REGIONS IN REGIONAL INDEX OF BRITISH COLUMBIA Region 1 2 3 4 5 6 7 8 9 10  Name East Kootenay West Kootenay Okanagan-Similkameen-Boundary Lower Mainland Vancouver Island Shuswap-Chilcotin Lower Coast Central I n t e r i o r North-Western Peace River  In the Index, the regions are subdivided into 78 areas, most of which correspond w i t h school d i s t r i c t s .  These 78 areas form a convenient s t r u c -  ture f o r examining economic a c t i v i t y i n the province and also the transp o r t a t i o n networks serving the province.  Appendix I i s a table showing  - 16 the number of c a r r i e r s within each mode operating between Greater Vancouver and each of the 78 economic areas.  On examining this table, one is  immediately struck by the large number of motor c a r r i e r s active in B r i t i s h Columbia.  CHAPTER I I I COMPETITIVE FACTORS IN TRANSPORTATION 3.1  Intra-Modal Competitive Factors In studies conducted by Canadian Transportation, twelve f a c t o r s have  been selected as having a bearing on the choice of c a r r i e r s f o r i n d u s t r i a l 18 shipments i n Canada.  Assuming that the shipper makes a r a t i o n a l choice--  and hence i s not influenced by such f a c t o r s as h a b i t and personal f r i e n d s h i p s — t h e s e twelve f a c t o r s appear to represent a reasonably complete framework f o r shipper d e c i s i o n s . A l o g i c a l extension i s that each f a c t o r perhaps represents an area for competition among c a r r i e r s seeking to gain the shipper's business.  This l i s t of f a c t o r s , shown i n Table 3.1, was  adopted as a basis f o r examining intra-modal competition i n the transport a t i o n industry i n B r i t i s h Columbia. TABLE 3.1 INTRA-MODAL COMPETITIVE FACTORS (Factors Considered by Shippers When S e l e c t i n g C a r r i e r s ) Time i n t r a n s i t On-time performance Freight charges Shipment t r a c i n g Frequency of s e r v i c e Door-to-door s e r v i c e A v a i l a b i l i t y of standard equipment Promptness of claims settlement Loss and degree of damage Information s e r v i c e Competence of s o l i c i t o r s A v a i l a b i l i t y of s p e c i a l equipment  - 18 While generally subject to government r e g u l a t i o n , c a r r i e r s w i t h i n the modes are not regulated with respect to the q u a l i t y of t h e i r s e r v i c e s . C a r r i e r s have considerable freedom i n competition to a t t r a c t and hold customers. 3 .2  Inter-Modal Competitive Factors In most cases, the choice of c a r r i e r i s preceded i n the shipper's  mind by the choice of mode of t r a n s p o r t . Some of the f a c t o r s i n Table 3.1 are associated almost e x c l u s i v e l y w i t h s e l e c t i o n of the c a r r i e r , but several of them have an bearing on s e l e c t i o n of the mode i t s e l f .  important  For a n a l y s i s of inter-modal  competition i n t r a n s p o r t a t i o n i n B r i t i s h Columbia one other f a c t o r i s an appropriate a d d i t i o n : r e s t r i c t i o n on maximum s i z e and weight of shipments. This a d d i t i o n a l f a c t o r i s somewhat r e l a t e d to the f a c t o r s " a v a i l a b i l i t y of standard equipment" and " a v a i l a b i l i t y of s p e c i a l equipment i n Table  3.1.  The f a c t o r s which appear to bear h e a v i l y on modal s e l e c t i o n and the a d d i t i o n a l f a c t o r r e l a t i n g to s i z e and weight are l i s t e d i n Table  4.1.  In contrast to intra-modal competition there i s considerably less freedom for competition among modes: the modes themselves are severely l i m i t e d by t h e i r geographical deployment and by t h e i r respective l e v e l s of technology.  CHAPTER IV INTER-MODAL COMPETITION IN BRITISH COLUMBIA 4.1  Inter-Modal Competitive Factors: Rank Order of Shipper's Modal Preference Table 4.1 l i s t s the selected inter-modal competitive factors and  for each f a c t o r shows the commonly accepted rank order of shipper's preference f o r the d i f f e r e n t modes of p u b l i c commodity transport i n B r i t i s h Columb i a . TABLE 4.1 INTER-MODAL COMPETITIVE FACTORS: RANK ORDER OF SHIPPER'S MODAL PREFERENCE  MODE OF TRANSPORT WATER  RAIL  ROAD  AIR  Time i n T r a n s i t  4  3  2  1  F r e i g h t Charges  1  2  3  4  Frequency of Service  *  2  1  *  Door-to-door  3  2  1 •  *  Loss and Degree of Damage  3  3  2  1  R e s t r i c t i o n on Maximum Size and Weight  1  2  3  4  Service  *not a c h a r a c t e r i s t i c of the mode, per se The rank orders shown are somewhat generalised and r e q u i r e some f l e x i b i l i t y i n a p p l i c a t i o n , e s p e c i a l l y when a s p e c i f i c shipment involves more than one mode of t r a n s p o r t . The main considerations supporting the rank orders shown i n Table 4.1  - 20 are as follows: 4.1.1  time in trans it--normal vehicle cruising speeds  4.1.2  freight charges—usual levels of costs to the c a r r i e r in providing service, assuming appropriate minimum route lengths and shipment sizes  4.1.3  frequency of service—usual loads on single vehicle assemb l i e s and usual levels of congestion (applying mainly to r a i l and road transport—water and a i r transport omitted from consideration)  4.1.4  door-to-door service—relative abundance of d i r e c t access to source and destination points (air transport omitted from consideration)  4.1.5  loss and degree of damage—historical records of actual performance for normal handling and records of incidence of  4.1.6  accidents  r e s t r i c t i o n on maximum size and weight--normal carrying c a p a b i l i t y of vehicles and t r a v e l l e d way, and obstructions encountered en route  As demonstrated in Table 4.1, obvious preference over the others,  there is no single mode that has an whenever an actual choice e x i s t s ,  selection must be based on a weighting of preference factors as they apply to a p a r t i c u l a r shipment.  Such weighting is a subjective matter so that  different individuals might e a s i l y make different selections under subs t a n t i a l l y i d e n t i c a l circumstances.  The opportunity obviously exists to  some degree for a c a r r i e r in any mode to equal or better whatever  is  offered by c a r r i e r s in other modes—or at least to minimise d i f f e r e n t i a l s so that any preference becomes very weak.  - 21 4.2  Time i n T r a n s i t Time i n t r a n s i t i s important to the shipper i n several d i f f e r e n t  ways.  I f the goods are high i n value, the impact of i n t e r e s t expense on  the value of inventory en route favours a low time i n t r a n s i t ; none of the shippers interviewed regarded t h i s as a s i g n i f i c a n t f a c t o r f o r t h e i r shipments.  I f the goods are p e r i s h a b l e , such as flowers, vegetables,  fruit,  meat, and f i s h , a low time i n t r a n s i t i s important to avoid spoilage and to ensure an a t t r a c t i v e appearance f o r the commodity i n the marketplace. While r e f r i g e r a t i o n i s h e l p f u l (and often e s s e n t i a l i n hot weather) r a p i d t r a n s p o r t a t i o n was regarded by the shippers interviewed as the key f a c t o r . Time i n t r a n s i t i s important to shippers who are i n a competitive industry where the customer requires f a s t s e r v i c e or has been conditioned to expect it.  F i n a l l y , time i n t r a n s i t can be of c r i t i c a l importance when shipping  materials (and personnel) e s s e n t i a l to restore some process or operation to running order. Improvements i n roads and road v e h i c l e s have l e d to considerable reductions i n time i n t r a n s i t f o r road transport.  Shorter t r a v e l l i n g time  i s the most important s i n g l e f a c t o r i n the growing competition between road and r a i l transport i n the province.  While many l o c a t i o n s are equipped  w i t h r a i l s i d i n g s , several r a i l interchanges may be necessary between source and d e s t i n a t i o n . I t i s not uncommon f o r each interchange between r a i l r o a d s to require a f u l l day: a t y p i c a l shipment between two points i n the province might take eight hours by truck but three days by r a i l .  Road  transport i s s u f f i c i e n t l y f a s t that many s u p p l i e r s serving the e n t i r e province operate only a s i n g l e warehouse located i n the Lower Mainland and can o f f e r s u b s t a n t i a l l y "next day" s e r v i c e to t h e i r customers.  area  - 22 T y p i c a l l y , Prince George (479 road miles from Vancouver) and main Okanagan V a l l e y points (251 to 321 road miles from Vancouver) are only overnight truck t r i p s from Vancouver. Shippers  interviewed i n the perishable food i n d u s t r i e s i n v a r i a b l y  used road transport because of reduced spoilage compared to r a i l transport. An example of a shipper o f f e r i n g f a s t s e r v i c e to customers i s Woodward Stores who operate a chain of department stores i n B r i t i s h Columbia and Alberta.  In shipments from the base warehouse i n Vancouver to "Vancouver  Downtown", West Vancouver (Park Royal), Surrey  (Guildford), Victoria,  Nanaimo, Port A l b e r n i , Kamloops, and Prince George, Woodwards uses road transport (contract trucking) almost e x c l u s i v e l y . While water transport i s much cheaper than road transport, i t i s also much slower.  As road f a c i l i t i e s expand to c o a s t a l centres i n the  province, general commodity t r a f f i c i s s t e a d i l y s h i f t i n g from water transport to road t r a n s p o r t — f o r c i n g the water c a r r i e r s to improve t h e i r performance to maintain t h e i r business. Emergency shipments are often sent by a i r . While a i r transport i s an important  segment of the t o t a l t r a n s p o r t a t i o n network, only one t h i r d  of the shippers interviewed made regular use of a i r f r e i g h t , and r e s t r i c t e d t h e i r use p r i m a r i l y to emergency shipment of supplies or replacement p a r t s . An important user of a i r transport i s the Federal Post O f f i c e Department which sends f i r s t c l a s s mail by a i r whenever service i s a v a i l a b l e that w i l l provide f a s t e r d e l i v e r y than other means. sent by a i r m a i l .  Packages can also be  In a very few l o c a t i o n s i n northern Canada, a l l mail i s  sent by a i r . The elapsed time that a shipment i s a c t u a l l y i n t r a n s i t i s not always c o n t r o l l i n g .  The convenience of scheduled a r r i v a l and departure  - 23 times may lead the shipper to t r a n s f e r shipments to a mode which i s poorer i n terms of time i n t r a n s i t . 4.3  Freight Charges The mode generally o f f e r i n g lowest f r e i g h t charges i s water transport.  I t i s widely used along the coast of B r i t i s h Columbia, but i n many cases there i s no p r a c t i c a l a l t e r n a t i v e , e s p e c i a l l y to i s l a n d locations such as the Gulf Islands, and the Queen Charlotte Islands.  Because of the extremely  rugged nature of most of the c o a s t l i n e and the h i n t e r l a n d , some population centres on the mainland at tidewater are as yet i n a c c e s s i b l e by land and must be serviced by water transport, w i t h a minor support by a i r transport. Such locations include Powell River (served by f e r r y , and a combination of road and f e r r y ) and Ocean F a l l s , both of which are s i t e s of large pulp mills. Prince Rupert i s an example of a tidewater l o c a t i o n which i s served by a l l four p u b l i c modes of transport.  Considerable q u a n t i t i e s of commodi-  t i e s are shipped by water, r a i l , and road. Where f r e i g h t charges are the main c r i t e r i o n , water transport gets the major share. For example, Prince Rupert ranks second among coastal ports i n volume of petroleum products received by water. Freight charges tend to assume greatest s i g n i f i c a n c e with low-value commodities. routes.  A good example i s beer, which t r a v e l s by lowest charge  Water transport i s used f o r beer wherever p o s s i b l e , w i t h r a i l as  the next choice; road transport i s used only i n s p e c i a l circumstances, and a i r i s never used f o r large shipments. For short runs or small s i z e shipments, the rank order of modal preference f o r f r e i g h t charges shown i n Table 4.1 requires m o d i f i c a t i o n  - 24 because costs of loading and unloading, and costs of t r a n s f e r r i n g between modes become c o n t r o l l i n g .  For urban runs, road transport would almost  c e r t a i n l y rank f i r s t rather than t h i r d , and for medium distance runs, perhaps up to 150 m i l e s , road transport would rank a f t e r water but ahead of r a i l . road.  For longer runs, f r e i g h t charges become lower f o r r a i l than f o r  One of the great advantages of r a i l transport over road l i e s i n the  economy of labour; t y p i c a l l y fewer than ten men are required on a f r e i g h t t r a i n c a r r y i n g more f r e i g h t than a hundred t r u c k s , each of which requires at l e a s t one man. As a r u l e , f o r short distances, f r e i g h t charges for r a i l are higher than f o r road.  Freight charges generally increase with distance for both  r a i l and road, but the r a t e of increase f o r r a i l i s somewhat lower.  At  some distance, t h e r e f o r e , the r a i l charge and the road charge become equal. The magnitude of t h i s distance i s dependent on various f a c t o r s , i n c l u d i n g type of commodity and s i z e of shipment.  I t i s not p o s s i b l e to state a  s p e c i f i c distance f o r which f r e i g h t charges i n B r i t i s h Columbia are equal for r a i l and road t r a n s p o r t , but i t i s probably i n the v i c i n i t y of 150 miles.  For any p a r t i c u l a r circumstances, the equal-charge distance i s  subject to competitive adjustment of r a t e s , but there i s l i t t l e opport u n i t y of s i g n i f i c a n c e i n B r i t i s h Columbia f o r such adjustment because of the way that the population centres happen to be s i t u a t e d . The major centre i n the province i s Greater Vancouver, and a l l communities i n the Lower Fraser V a l l e y l i e w i t h i n 100 m i l e s , c l e a r l y favouring road transport for  f r e i g h t charges.  The next c l o s e s t communities of any appreciable s i z e  are more than 250 miles away from Vancouver, hence generally favouring r a i l transport f o r f r e i g h t charges.  S i m i l a r l y , on Vancouver I s l a n d , the  majority of the population l i e s between Nanaimo and V i c t o r i a , which are  - 25 only 70 miles apart, while most of the population i n the northern part of Vancouver Island i s w i t h i n 100 miles of Nanaimo.  The t o t a l population i n  Greater Vancouver, the lower Fraser V a l l e y , and Vancouver Island amounts to 19 73 percent of the t o t a l population of the province. Eaton's operates a very large chain of department stores and mail order o f f i c e s across Canada, i n c l u d i n g 44 l o c a t i o n s i n B r i t i s h Columbia. Eaton's i s an i d e a l example of a shipper who uses road transport throughout the Fraser V a l l e y and Vancouver I s l a n d , and uses r a i l transport p r a c t i c a l l y everywhere e l s e .  (For the purpose of t h i s study, trucks using  f e r r y transport between Vancouver and Vancouver Island are assumed to c o n s t i t u t e road transport.)  This r u l e applies to 42 of the 44 l o c a t i o n s ,  the only exceptions being Prince Rupert, which i s supplied by water, and Williams Lake, which i s normally supplied by road. A few commodities are able to t r a v e l by r a i l i n B r i t i s h Columbia to accept low f r e i g h t charges because large volumes of uniform items are involved which can be stocked i n branch warehouses.  The costs of operating  branch warehouses, less the savings i n warehouse costs at the base plus the r a i l f r e i g h t charges must i n t o t a l be less than the t o t a l costs f o r the a l t e r n a t e choice of base warehousing alone plus the f r e i g h t charges for smaller and more frequent shipments.  T y p i c a l of such commodities are beer  and paper wrapping materials for the f r u i t i n d u s t r y . There are about 25 beer warehouses i n the province, and there i s one warehouse i n Kelowna f o r paper wrapping materials used throughout the Okanagan V a l l e y . Of the s i x inter-modal competitive f a c t o r s l i s t e d i n Table  4.1,  f r e i g h t charge i s the only one that can be manipulated without p h y s i c a l changes i n the operation of any k i n d : i t i s , t h e r e f o r e , u s u a l l y the f i r s t to be considered i n competitive a c t i v i t y .  A perennial problem i n maximising  -  26  -  p r o f i t for most transportation systems i s the achievement of maximum net revenue for both head-haul and back-haul.  In many s i t u a t i o n s , the c a r r i e r  must be s a t i s f i e d with a substantial unbalance in revenue, and may earn a p r o f i t only on the head-haul.  i n fact  At worst, he may have an empty back-  haul, so that any incremental net revenue that can be earned on back-haul is an improvement.  The back-haul  i s , therefore, commonly open to negotia-  t i o n on price and frequently presents the opportunity for inter-modal competition in freight charges.  When a c a r r i e r has a p r o f i t a b l e head-haul  but carries less than a f u l l allowable load, he can increase h i s p r o f i t i f additional loading i s obtained for which the incremental revenue exceeds his incremental costs.  This presents a second opportunity for inter-modal  competition i n p r i c e . Perhaps a form of freight charge competition i s involved in the manner i n which "weight" i s determined  for small shipments.  In some cases,  the shipper has no f a c i l i t i e s for weighing packages, and he simply estimates a weight which he marks on the b i l l of lading.  The pick-up driver has no  accurate means to check the weight, at least at the time of pick-up, and can r e l y only on how  the package " f e e l s " knowing roughly how much e f f o r t  i t takes to move or l i f t a given weight. the shipper to underestimate  The natural tendency would be for  the weight, and there i s probably a tendency  to deal with c a r r i e r s who w i l l not question the claimed weight. 4.4  Frequency of Service Frequency of service i s necessarily a function of the t o t a l volume  of freight moved, the size of normal loads carried by a single v e h i c l e assembly, the number of competitive c a r r i e r s on the route, and permissible levels of congestion.  R a i l transport i s severely r e s t r i c t e d i n frequency  - 27 of service p o s s i b l e on s i n g l e railway tracks that carry t r a f f i c i n both d i r e c t i o n s with t r a i n s that might be upwards of 100 t h i s respect, road t r a f f i c i s much more f l e x i b l e .  cars i n length.  In  However, water, road,  and a i r transport routes a l l have some l i m i t a t i o n s r e l a t e d to l e v e l s of congestion at the terminals and intermediate stops, and the routes themselves . Frequency of service has an appeal to those shippers who  operate a  s i n g l e plant or warehouse to serve a large area such as B r i t i s h Columbia. A l l modes of p u b l i c transport i n the province o f f e r scheduled s e r v i c e , commonly d a i l y f o r r a i l , road, and a i r c a r r i e r s .  Water transport i s  u s u a l l y scheduled several times a day f o r the short f e r r y runs, but only once a week f o r the longer scheduled routes.  Except f o r water transport,  a c a r r i e r o f f e r i n g scheduled service i n the province must maintain h i s schedule i n a reasonable manner as a condition of holding h i s l i c e n c e to operate. 4.5  Door-to-door Service There are several a p p l i c a t i o n s of "door-to-door s e r v i c e " i n water  transport which are important to the economy of B r i t i s h Columbia, perhaps the best example being commercial f i s h i n g . freshly-caught  I n d i v i d u a l fishing-boats carry  f i s h d i r e c t l y to canneries or freeze packers, or t r a n s f e r  them to f i s h packers who operate a s h u t t l e service between the f i s h i n g grounds and the packing houses. water.  The packing houses are i n v a r i a b l y on t i d e  Another example i s the logging industry i n c o a s t a l regions.  Logs  cut i n areas adjacent to the coast or large lakes are formed into booms and are towed d i r e c t l y to saw-mills which are located at the water's edge. Large q u a n t i t i e s of pulp wood are taken d i r e c t l y to pulp m i l l s located on  - 28 tide-water.  A s u b s t a n t i a l proportion of the production of packaged f i s h ,  lumber, pulp, and paper i s exported d i r e c t l y from the point of production by deep-sea v e s s e l .  There are also several instances i n the province of  mining operations i n which ore concentrates are loaded d i r e c t l y on deepsea v e s s e l s . Hooker Chemicals has two manufacturing  plants i n B r i t i s h Columbia,  producing c h l o r i n e gas and c a u s t i c soda, mainly f o r use as bleaching chemicals  i n pulp m i l l s i n the province.  The pulp m i l l s supplied by Hooker  are a l l e i t h e r on tide-water (with i n - p l a n t railways) or on r a i l s i d i n g s . The Hooker plant i n North Vancouver i s located on tide-water and has a r a i l s i d i n g on the C.N.R. l i n e so that Hooker o f f e r s door-to-door s e r v i c e to a l l of i t s pulp m i l l customers. Hooker ships c h l o r i n e as a gas under pressure (about 175 PSIG) e i t h e r by tanks on t h e i r own barge (the " M e t l a k a t l a " , 900 tons c h l o r i n e capacity) or by r a i l car (usually 30 ton or 55 ton c a r s ) . The " M e t l a k a t l a " i s used to supply the pulp m i l l at Prince Rupert and r a i l car barges are used to supply Crofton, Duncan Bay, Port A l i c e , and Port A l b e r n i . Kamloops i s supplied by r a i l under a customer-negotiated  agreed charge w i t h C.N.R.  based on r e c e i v i n g 100 percent of the chemical t r a f f i c and c a r r y i n g pulp shipments on the r e t u r n h a u l . Hooker ships c a u s t i c soda as an aqueous s o l u t i o n at atmospheric pressure.  The usual concentration i s 50 percent but 73 percent i s now  being used i n the United States because of t r a n s p o r t a t i o n economics. Hooker i s contemplating using the higher concentration i n B r i t i s h Columbia. While both c a u s t i c soda and c h l o r i n e are dangerous chemicals, the danger area f o r c a u s t i c soda i s l i m i t e d mainly to the l i q u i d s p i l l zone, but for c h l o r i n e i s l i m i t e d by the d i s p e r s i o n concentration of the (heavy) gas,  -  which could cover a large area.  29  -  Chlorine gas i n B r i t i s h Columbia i s  shipped in large quantities only by water and r a i l , but caustic soda i s shipped by water, r a i l , and truck. of caustic soda.  The  "Metlakatla" can carry 4,500 tons  Caustic soda is shipped in road tank trucks, with several  road c a r r i e r s sharing the  business.  Hooker Chemicals other plant is adjacent Nanaimo.  to the Harmac m i l l near  This Hooker plant supplies chemicals to Harmac by p i p e l i n e , and  supplies caustic soda to Port A l b e r n i by tank truck. Even i f shipper and consignee are located on r a i l sidings, r a i l transport i s considerably hampered by the delays and costs of transfers between railways.  Road transport is not r e s t r i c t e d in this way  the great f l e x i b i l i t y of l i t e r a l service from door-to-door. within an urban area are almost u n i v e r s a l l y c a r r i e d by  and offers  Shipments  truck.  When r a i l sidings at source and destination are not a v a i l a b l e , r a i l shipments require extra handling by pickup and delivery vehicles at source and destination.  However, reduced handling when using truck transport is  riot always a r e a l i t y .  Small shipments are commonly picked up throughout  the Lower Mainland area by l i g h t trucks and then taken to an assembly terminal for transfer to a larger v e h i c l e ; at destination the larger vehicle is "stripped" and individual d e l i v e r i e s are made by l i g h t  truck.  This procedure is more economical than taking a large truck t r a i l e r to a series of individual pick-up points, and  in any case i s often the only  p r a c t i c a l procedure because of the awkward maneuvering involved and congestion caused by a large t r a i l e r i n urban areas. When i n d i v i d u a l shipments are large enough for a f u l l t r a i l e r load and there i s reasonable access to the shipper's plant or' warehouse, i t i s  - 30 common p r a c t i c e to leave t r a i l e r s on shippers premises f o r loading throughout the day f o r l a t e afternoon or evening pick-up and overnight transport to a remote l o c a t i o n . Such loading procedures are common i n the Lower Mainland f o r construction m a t e r i a l s , "dry" g r o c e r i e s , and department store goods.  Other commodities which are loaded by t r a i l e r d i r e c t l y at  plants and warehouses i n the Lower Mainland include r e i n f o r c i n g s t e e l , manufactured s t e e l shapes, aluminum and copper shapes, and f a b r i c a t e d metal assemblies. The use of t r a i l e r " t r a i n s " provides some a d d i t i o n a l f l e x i b i l i t y i n truck operation.  Two h a l f - s i z e t r a i l e r s can be hauled instead of a s i n g l e  f u l l - s i z e t r a i l e r , and the h a l f - s i z e t r a i l e r s are f a s t e r to load and unload and much e a s i e r to handle as a s i n g l e u n i t i n urban areas.  Long-haul  truckers can drop o f f one t r a i l e r en route and pick up another i n a very short time instead of delaying u n t i l a part load i s removed.  Van-Kam  Freightways i s an example of a B r i t i s h Columbia c a r r i e r who uses doubletrailer trains.  In the United States, a few trucking operators are hauling  t r a i n s of three t r a i l e r s , but there are none as yet i n B r i t i s h Columbia. Another p r a c t i c e which has achieved prominence i n numerous countries i s the "piggy-back" s e r v i c e , or TOFC: t r a i l e r on f l a t car.  Piggy-back  i s used extensively i n B r i t i s h Columbia by a l l the common c a r r i e r r a i l r o a d s . For example, P.G.E. t r a i l e r s load during the day at the Macdonalds Consolidated food warehouse complex i n Burnaby f o r l a t e afternoon pick-up and loading on r a i l f l a t cars i n North Vancouver.  T r a i l e r s r i d e piggy-back to  Williams Lake, Quesnel, and Prince George where they are d e l i v e r e d by P.G.E. d i r e c t l y to Canada Safeway stores i n the area.  These t r a i l e r s carry various  "dry" groceries packaged i n cans, b o t t l e s , p l a s t i c containers, and cardboard boxes, such as f r u i t , vegetables, meat, f i s h , c e r e a l , dehydrated  products,  - 31 c o f f e e , t e a , soap, and other cleaning m a t e r i a l s . 4.6  Loss and Degree of Damage Loss and degree of damage are normally regarded as lowest f o r a i r  transport and next lowest f o r road transport.  In the ranking f o r t h i s  f a c t o r as shown i n Table 4.1, i t has been assumed that water transport and r a i l transport are about equal. Loss and degree of damage were not regarded as serious problems by the shippers interviewed.  Loss through t h e f t i s not very common, p a r t l y  because many of the commodities subject to t h e f t are packed so that t h e i r i d e n t i t y i s concealed, or are sealed i n containers i n such a way that a broken seal i s obvious on cursory examination.  Loss through m i s d i r e c t i o n  i s an infrequent occurrence because of close a t t e n t i o n given by shippers i n marking shipment destinations c l e a r l y , and because of good design and c a r e f u l handling of documents. Damage to goods i n t r a n s i t has become less prevalent over the years, l a r g e l y because of great improvements i n packaging materials and packaging techniques, and because of improvements i n materials handling equipment and stowing techniques. Corrugated cardboard and p l a s t i c foam are examples of very e f f e c t i v e packaging m a t e r i a l s . p l a n t i n g glass b o t t l e s . i n stowing shipments.  P l a s t i c b o t t l e s are r a p i d l y sup-  U n i t i z i n g and p a l l e t i z i n g are e f f e c t i v e techniques Many commodities are handled i n i n d i v i d u a l pieces  once i n loading on a p a l l e t and then are not disturbed u n t i l unloading f o r d i s p l a y or actual use; the p a l l e t i t s e l f might pass through h a l f a dozen vehicle transfers.  "Keystone" loading on the p a l l e t i s used f o r bagged  materials and boxed materials and reduces swaying of the load i n t r a n s i t . Careful stowing and strapping i n the t r a n s i t v e h i c l e reduce damage to  - 32 packages from impact or rubbing contact with the v e h i c l e or other packages. Improvements i n packaging and stowing have tended to reduce d i f f e r e n t i a l preferences between d i f f e r e n t modes of transport with respect to damage. Improved technology has provided another technique f o r c o n t r o l of damage i n shipment.  A manufacturer of sanitary paper products i n the  Lower Mainland ships extensively by r a i l throughout the province.  Again,  damage to shipments i s not a serious problem, but does occur to a l i m i t e d extent from time to time, e s p e c i a l l y with "non-core" products such as facial tissue.  (The "core" i n t o w e l l i n g , f o r example, imparts  appreciable  strength to packages and r e a d i l y permits stacking several t i e r s i n height.) A corrugated cardboard carton containing several i n d i v i d u a l packages of f a c i a l t i s s u e can be undamaged on the outside, but have a l l the t i s s u e crowded to one end i n s i d e the carton, rendering i t unsaleable.  The  experience of t h i s Lower Mainland manufacturer i s that t h i s type of damage has been more prevalent on some r a i l routes than on others.  He has found  i t very e f f e c t i v e to i n s t a l l impact recorders to t r a v e l with such shipments to obtain evidence for n e g o t i a t i o n with the r a i l r o a d . Several shippers interviewed commented that an advantage of road transport over r a i l i s that the truck d r i v e r u s u a l l y performs or supervises performance of the loading of h i s v e h i c l e , and takes a personal i n t e r e s t i n the load whereas a t r a i n crew does no more than make a quick inspection of the t r a i n .  The truck d r i v e r i s i n t e r e s t e d i n proper securing of the  load f o r h i s own safety on the road, but experience has shown that he takes some personal pride i n the proper p r o t e c t i o n of the loads, such as p l a c i n g and securing t a r p a u l i n s or p l a s t i c covers to protect commodities  - 33 such as lumber, plywood, and b u i l d i n g b r i c k from r a i n , snow, mud, and i c e . Lenkurt E l e c t r i c Company of Canada i s a manufacturer of e l e c t r o n i c communications and c o n t r o l equipment, operating a large plant i n Burnaby. This company undertakes many projects on a "supply and i n s t a l l " basis and frequently requires to ship e l e c t r o n i c t e s t equipment.  Lenkurt makes a  p r a c t i c e of shipping t h i s equipment by a i r because experience has shown that the necessary d e l i c a t e c a l i b r a t i o n adjustments are very l i t t l e d i s turbed, i f at a l l , on a i r shipments. Aside from damage i n normal t r a n s i t , the most severe damage occurs, of course, when the f r e i g h t v e h i c l e i s involved i n c o l l i s i o n , or leaves the 4.7  t r a v e l l e d way. R e s t r i c t i o n on Maximum Size and Weight The rank order i n modal preference f o r r e s t r i c t i o n on maximum s i z e  and weight places water transport f i r s t because the barges i n regular use along the coast of B r i t i s h Columbia can carry very much b u l k i e r and heavier loads than are p o s s i b l e on any of the other modes.  Two thousand ton capa-  c i t y barges are i n common use and twenty-five hundred ton barges are not unusual.  Depth of water at loading and unloading berths and along the  route i s not normally a problem because the barges have such a shallow draft.  Size of shipment i s , therefore, u s u a l l y l i m i t e d only by the  capacity of the barge and overhead obstructions such as bridges.  Rail  transport ranks second because obstructions are more severe than f o r water, but less stringent than f o r road transport.  I n d i v i d u a l r a i l car loads are  r e s t r i c t e d i n s i z e by the cars, the clearances from various obstructions i n c l u d i n g s t a t i o n platforms, rock faces along the t r a v e l l e d way, tunnels, bridges and passing t r a i n s .  They are r e s t r i c t e d i n weight by the  -  34 -  s t a b i l i t y of the road bed, the strength of the r a i l s , the strength of bridges and t r e s t l e s , and by the construction of the r a i l cars.  Maximum  s i z e and weight of loads f o r highway transport are regulated by the p r o v i n c i a l government and are p h y s i c a l l y l i m i t e d by the v e h i c l e s thems e l v e s , the strength of highway pavement and bridges, s t a b i l i t y of the road bed, by the dimension of the roadway, bridges, and tunnels and by passing  traffic. On numerous stretches of highway i n B r i t i s h Columbia, a further  l i m i t a t i o n i s reduced maximum permissible weight for varying periods i n the spring of the year to avoid overloading bridges over streams and r i v e r s during the spring f r e s h e t , and to avoid pavement damage when frozen s u b - s o i l begins to thaw. A i r transport i s ranked l a s t i n the order of modal preference f o r r e s t r i c t e d maximum s i z e and weight because the maximum loads that can be c a r r i e d are l i m i t e d by the capacity of commercial a i r c r a f t and by the take-off and landing f a c i l i t i e s at aerodromes.  P a c i f i c Western A i r l i n e s  operates a Hercules a i r f r e i g h t e r on charter service i n the province, and can carry quite large loads, but i n general, a i r c r a f t loads are much smaller than loads that can be c a r r i e d by road v e h i c l e s . In recent years, B r i t i s h Columbia has been the scene of a number of large construction p r o j e c t s , notably water storage dams, h y d r o - e l e c t r i c generating  s t a t i o n s , e l e c t r i c a l transmission l i n e s , p i p e l i n e s , highways,  metal reduction p l a n t s , and pulp m i l l s .  These projects have required  that considerable q u a n t i t i e s of construction m a t e r i a l s , construction machinery, and plant machinery be transported to the job s i t e s .  Because  shipments were often bulky and heavy, f r e i g h t charges and r e s t r i c t i o n on  - 35 maximum s i z e and weight were both matters of importance.  In Table 4.1,  i t w i l l be noted that the rank order of modal preference  for both factors  i s water transport f i r s t , followed by r a i l , and then by road, and t h i s c o n s t i t u t e d the main basis f o r modal s e l e c t i o n f o r these large p r o j e c t s . Where non-reducible  loads i n excess of normal highway r e s t r i c t i o n s  are required at i n d u s t r i a l plants not served by r a i l , s p e c i a l arrangements can often be made for road h a u l .  While the normal maximum allowable  gross v e h i c l e weight i n the province i s 76,000 l b s . , s i n g l e loads exceeding 250,000 l b s . have been c a r r i e d on p r o v i n c i a l highways. Delivery of heavy mechanical and e l e c t r i c a l equipment f o r a large construction project (such as a h y d r o - e l e c t r i c generating plant) i s u s u a l l y scheduled over a period of several months, or even years.  The  time i n t r a n s i t , therefore, has l i t t l e r e a l s i g n i f i c a n c e and would normally not be a basis f o r s e l e c t i o n of mode. The construction program u s u a l l y has some " s l a c k " for adjustment of the i n s t a l l a t i o n schedule.  I f materials  to be shipped are operating supplies which are consumed at a regular rate (such as chemicals i n a pulp m i l l ) then the net economic d i f f e r e n c e between a slow moving d e l i v e r y system and a f a s t e r one i s simply the savings i n f r e i g h t charges less the i n t e r e s t expense on the a d d i t i o n a l materials t i e d up i n t r a n s i t by the slower system. In many instances, some of the engineering design c r i t e r i a f o r maximum dimensions of plant machinery and construction machinery used on these large projects were based on the r e s t r i c t i o n on maximum s i z e and weight imposed by the most favourable mode of transport a v a i l a b l e . On large jobs, manufacturers have negotiated t r a n s p o r t a t i o n charges with c a r r i e r s as a basic f o r preparing b i d s .  The P.G.E. has c a r r i e d s t e e l  storage vessels as large as 18 feet i n diameter.  These were s p e c i a l  - 36 shipments that required s p e c i a l scheduling to eliminate a l l passing traffic.  Large ore-body trucks used on the Mica Dam project were too  large to t r a v e l by highway: they were 15 feet wide and 12 feet high overall.  A f t e r factory t e s t s , the trucks were dismantled  into sub-  assemblies and shipped by C.P.R. to r a i l - h e a d where they were re-assembled and driven to the dam s i t e .  Each truck required three f u l l r a i l  flat-car  loads of sub-assemblies. 4.8  Competition Between R a i l and Road Transport I t i s evident that the main inter-modal competition  Columbia i s between r a i l and road transport.  in British  Improvements i n the extent  and q u a l i t y of urban and p r o v i n c i a l road systems and improvements i n the design o f road v e h i c l e s have contributed i n B r i t i s h Columbia, as elsewhere, to the r a p i d growth of road transport with r a i l transport holding subs t a n t i a l l y a constant volume but a d e c l i n i n g share i n the expanding transp o r t a t i o n market. competition  The railway companies have responded to t h i s r i s i n g  i n three ways:  4.8.1  By r e s t r i c t i n g services o f f e r e d --  C.N.R. and C.P.R. are p a r t i c i p a n t s i n Express Transport A s s o c i a t i o n T a r i f f 100 (ETA 100) which accepts shipments o f a l l sizes from 5 l b s . and larger.  C.N.R. provides t h i s service i n B r i t i s h Columbia by r a i l  mented by road v e h i c l e s at both source and d e s t i n a t i o n .  supple-  (C.N.R. Express  competes with i t s wholly-owned subsidiary Chapman Transport).  C.P.R. does  not apply ETA 100 i n B r i t i s h Columbia but instead c a r r i e s small shipments by truck ( v i a C.P.T.) Rates f o r LCL (less than carload l o t ) are provided i n Canadian Freight C l a s s i f i c a t i o n T a r i f f No. 22 but they are not applied i n B r i t i s h Columbia e i t h e r by C.N.R. or C.P.R. Both C.N.R. and C.P.R. concentrate  on f u l l carload l o t s .  Both  - 37 r a i l r o a d s b r i n g bulk commodities and manufactured  goods to Vancouver from  the p r a i r i e s and eastern Canada, mainly as exports, and have a r e t u r n haul of bulk materials and manufactured  goods, some of them being imports.  P.G.E. i s faced with a d i f f e r e n t t r a f f i c p a t t e r n , l a r g e l y with bulk m a t e r i a l s t r a v e l l i n g southbound to Vancouver f o r export and other t r a f f i c c o n s i s t i n g mainly of bulk materials t r a v e l l i n g to m i l l s at Quesnel and Prince George from locations north of North Vancouver, and locations south of the northern t e r m i n i .  According to t r a f f i c s t a t i s t i c s f o r 1968,  less than 16 percent of P.G.E.'s t o t a l t r a f f i c o r i g i n a t e s i n North Vancouver (for northbound movement).  As a consequence, P.G.E. has a large  proportion of northbound empty c a r s , and encourages less than carload l o t t r a f f i c from Greater Vancouver o r i g i n s . 4.8.2 By entering the trucking business — C.N.R. operates Chapman Transport, serving the Cariboo, Kamloops, Revelstoke, and the e n t i r e Okanagan V a l l e y .  C.P.R. operates Canadian  P a c i f i c Transport Company (formerly Canadian P a c i f i c Merchandise  Service)  serving p r a c t i c a l l y the whole province. 4.8.3  By employing new technology --  C.P.R. has been a pioneer i n applying computer technology to the t r a n s p o r t a t i o n i n d u s t r y , and has developed quite s o p h i s t i c a t e d management information systems.  The r a i l r o a d s have made wide-spread use of piggy-  back c a r r i a g e , and are now beginning to use large containers designed for" repeated interchange between water, r a i l , and road t r a n s p o r t . The piggyback system admirably combines the advantage of trucking i n providing door-to-door service (needing only a s i n g l e loading and unloading of the t r a i l e r ) w i t h the advantage of r a i l i n providing low-cost long-distance hauling.  Piggy-back t r a f f i c i s increasing s t e a d i l y , and C.N.R., C.P.R.,  - 38 and P.G.E. a l l report that piggy-back revenue i n B r i t i s h Columbia i s of the order of four percent of t o t a l revenue.  This proportion applies  generally to the rest of Canada and to the United States.  I t should  be  noted that piggy-back charges are b a s i c a l l y under c o n t r o l of the r a i l r o a d s and so need to be only marginally below long-haul road costs to be a t t r a c t i v e to t r u c k e r s .  The r a i l r o a d s use piggy-back service extensively  to haul t h e i r own highway t r a i l e r s . While operating only p a r t l y i n B r i t i s h Columbia, the White Pass and Yukon Corporation operates an impressive integrated system of ships, t r u c k s , and r a i l cars, c a r r y i n g l a r g e l y containerized goods between Vancouver and way  points i n the Yukon (using water transport between North  Vancouver and Skagway).  CHAPTER V INTRA-MODAL COMPETITION IN BRITISH COLUMBIA Many o f the comments i n the previous chapter on the f i v e competit i v e factors under consideration that are common to inter-modal and i n t r a modal competition have equal a p p l i c a t i o n to those factors i n t h i s chapter. However, some a d d i t i o n a l comments on these factors w i l l be introduced. 5.1  Time i n T r a n s i t A c a r r i e r can reduce h i s time i n t r a n s i t by c a r e f u l scheduling,  by avoiding congestion, by s e l e c t i n g an advantageous route, and by using faster vehicles.  The 1970's w i l l probably see the advent of t u r b i n e -  powered trucks that w i l l reduce t r a n s i t time, e s p e c i a l l y on the many routes i n B r i t i s h Columbia that have long, steady climbs. 5.2  Freight Charges When questioned about s e l e c t i o n o f a c a r r i e r on the basis o f f r e i g h t  charges, most shippers s a i d that there was very l i t t l e to choose.  Rail  rates by a l t e r n a t e r a i l r o a d s to the same d e s t i n a t i o n are v i r t u a l l y i d e n t i c a l but an interchange at a remote point f o r furtherance would lead to higher costs.  For example, rates from Vancouver to Prince George are s i m i l a r v i a  P.G.E. and C.N.R., but rates from Vancouver to Vanderhoof (and other points further west on the C.N.R. l i n e ) are lower by C.N.R. than by P.G.E. because of the interchange at Prince George. Most of the 78 economic areas i n the province (see Appendix I) served by r a i l are served only by one r a i l r o a d , and therefore no intra-modal choice e x i s t s .  In those l o c a t i o n s where a choice does  e x i s t , s e l e c t i o n i s u s u a l l y made on the basis o f the route o f f e r i n g the  - 40 minimum number of interchanges because of lower time i n t r a n s i t and expectation of lower damage. For example, a shipment o f beer from a Vancouver brewery might have the choice of a B.C. Hydro-C.P.R.-P.G.E.C.N.R. r o u t i n g to a C.N.R. s i d i n g i n Prince George (P.G.E. from North Vancouver to Prince George), or of a B.C. Hydro-C.P.R.-C.N.R. routing (C.N.R. from Vancouver to Prince George). s i n g l e interchange  Since i t i s common for a  to require a f u l l day, the obvious preference would  be the C.N.R. r o u t i n g , c e t e r i s paribus. The l a r g e r B r i t i s h Columbia companies often make i t a p r a c t i c e t o s p l i t t h e i r business between competing r a i l r a o d s and competing t r u c k i n g companies so that more than one c a r r i e r w i l l be accustomed to the shipper's requirements, and the shipper w i l l not be dependent on a s i n g l e source. Some large n a t i o n a l companies s p l i t t h e i r business equally between the two t r a n s - c o n t i n e n t a l r a i l r o a d s . Many of the trucking companies are p a r t i c i p a n t s i n common f r e i g h t 20 r a t e t a r i f f s , such as B r i t i s h Columbia Freight T a r i f f No. 20  governing  scheduled and non-scheduled services between the Vancouver area and Kootenays—Okanagan V a l l e y — C a r i b o o , west of Prince George to Prince Rupert, east of Cache Creek to Golden i n c l u d i n g Mica, north of Kamloops to McBridge and Yellowhead, and between points s i t u a t e d i n these areas. This T a r i f f s p e c i f i e s maximum r a t e s , and i t appears that most c a r r i e r s a c t u a l l y charge the maximum r a t e s .  As already mentioned, charges f o r  back-haul may be negotiated, and one shipper s a i d that such charges are commonly one-half to two-thirds of the maximum r a t e .  Some c a r r i e r s  obviously s o l i c i t back-haul business by o f f e r i n g quite low r a t e s , and showing a d i s t i n c t preference f o r large s i n g l e loads.  A few shippers  suggested that some c a r r i e r s "probably" give a rebate on f r e i g h t charges  - 41 to customers who have consistent large shipments. 5.3  Door-to-door Service This f a c t o r i s p r i m a r i l y a matter of inter-modal choice.  5.4  Frequency of Service A c a r r i e r might be able to a t t r a c t and hold a customer by o f f e r i n g  a more frequent s e r v i c e than h i s competitors.  However, there i s a growing  concern, p a r t i c u l a r l y i n the t r u c k i n g i n d u s t r y , about the high cost of handling small shipments, and the need to increase minimum charges.  One  way to m i t i g a t e t h i s problem would be to reduce the frequency of s e r v i c e , but most c a r r i e r s would be r e l u c t a n t to take t h i s step.  While the  truckers complain about the problem of the small shipment some of them a c t u a l l y c o n t r i b u t e to the problem by making the rounds of p o t e n t i a l customers on an "anything f o r me?" b a s i s . 5.5  Loss and Damage Shippers handling commodities that are subject to t h e f t u s u a l l y  take p a r t i c u l a r care to select r e l i a b l e c a r r i e r s .  An example i s Western  wholesale Drugs which warehouses and ships from Vancouver v i r t u a l l y every a r t i c l e c a r r i e d i n a l l of the 82 Cunningham Drug Stores and 65 Western Drug Stores i n B r i t i s h Columbia.  T h i r t y - f i v e thousand items are handled  ( s i x t y thousand, counting s i z e v a r i a t i o n s ) ranging from candy and cosmetics to cameras and codeine.  A l l shipments are handled by c a r r i e r s  who  have been employed s t e a d i l y f o r at least ten years, and some for upwards of t h i r t y years. A general comment among the shippers interviewed was that c a r r i e r s of intermediate and smaller s i z e take more care with shipments than do the  -  42  -  large c a r r i e r s . 5.6  On-time Performance On-time performance has regard f o r both time of pick-up and time of  d e l i v e r y , and i s of concern to both consignor and consignee.  The s i g -  n i f i c a n c e of t h i s f a c t o r l i e s i n the p o t e n t i a l upset to planning and the consequences of the c a r r i e r being e a r l y or l a t e at e i t h e r end of the trip.  Interconnections w i t h other c a r r i e r s may be upset; there may be  serious consequences at the u l t i m a t e d e s t i n a t i o n i f a shipment i s l a t e . A shipment of bulky goods or of a large volume of packages obstructs the warehouse operation and w i l l u s u a l l y be scheduled f o r assembly (or d i s p e r s a l ) at the loading dock to co-ordinate with the c a r r i e r ' s promised time of departure (or a r r i v a l ) .  The problem of greatest concern mentioned  by the shippers interviewed was the matter of r e q u i r i n g to pay workers overtime or to b r i n g i n a s p e c i a l s h i f t whenever a c a r r i e r i s l a t e . Many labour union contracts today require four hours minimum pay i f a worker i s c a l l e d to a job outside of h i s normal hours of work.  I f loading  or unloading the shipment requires s p e c i a l equipment to be brought i n , a r r i v a l other than on-time can involve s u b s t a n t i a l e x t r a c o s t s .  The  shippers admitted that a c a r r i e r i s often h e l d up on h i s schedule because some shipper has neglected to inform the c a r r i e r of an unusually bulky or heavy shipment.  Of course, when the c a r r i e r i s l a t e , i t may w e l l be  for a reason beyond h i s c o n t r o l , such as severe weather c o n d i t i o n s , or a r o c k - s l i d e blocking the t r a v e l l e d way.  A v e h i c l e may be l a t e because  of mechanical breakdown, but the stronger c a r r i e r s operate standby equipment which can pick up shipments from a d i s a b l e d v e h i c l e and attempt to maintain the schedule.  One shipper said that t h i s was an important  - 43 consideration i n h i s s e l e c t i o n of a c a r r i e r . A modern a i d to maintaining on-time performance i s radio d i s patching, which i s now quite widely used, e s p e c i a l l y i n urban areas. An example o f a shipper who demands very s t r i c t adherance to ontime performance i s the Vancouver Sun newspaper.  This newspaper publishes  s i x days a week, and has three-regular e d i t i o n s , each with s l i g h t l y d i f ferent news content: 5.6.1  t h r e e - s t a r , "country e d i t i o n " , issued at 10:30 a.m., f o r Vancouver s t r e e t sales and the Fraser V a l l e y .  5.6.2  f o u r - s t a r , "home e d i t i o n " , issued at 1:45 p.m., f o r home d e l i v e r y i n Greater Vancouver and shipment to the Sechelt Penninsula north to Powell R i v e r .  5.6.3  B u f f , " f i n a l e d i t i o n " , issued at 3:30 p.m. f o r Vancouver s t r e e t s a l e s , and shipment to Vancouver Island and the i n t e r i o r of the province.  Most of the newspaper d i s t r i b u t i o n to sub-stations i s made by small independent truckers who have handled the same job e f f e c t i v e l y f o r more than t h i r t y years.  Various i n d i v i d u a l runs are scheduled f o r departure  throughout the morning and afternoon. On-time performance probably makes the greatest s i n g l e c o n t r i b u t i o n to what a shipper regards as "dependability" i n a c a r r i e r . 5.7 A v a i l a b i l i t y o f Standard Equipment A v a i l a b i l i t y o f standard equipment on a day-to-day basis can be a factor i n selecting a c a r r i e r .  For example, a b u i l d i n g materials s u p p l i e r  may wish to load a r a i l car tomorrow say f o r Prince George and be i n d i f ferent whether i t t r a v e l s by C.N.R. or P.G.E. The c a r r i e r who can provide  - 44 a car on the shippers s i d i n g at e a r l i e s t convenience w i l l be the one selected.  For any number of "rush" shipments, the f l o o r shipper w i l l  s t a r t to c a l l h i s customary c a r r i e r s u n t i l he finds one who can give immediate s e r v i c e . 5.8  A v a i l a b i l i t y of Special Equipment The shippers interviewed indicated that very often the a v a i l a b i l i t y  of s p e c i a l equipment i s the determining f a c t o r i n s e l e c t i n g a p a r t i c u l a r carrier.  Special equipment i s required to handle loads of awkward s i z e  and weight, loads of bulk m a t e r i a l s , and loads that require s p e c i a l environment.  Double-deck highway transporters f o r automobiles are widely  used throughout the province f o r d i s t r i b u t i o n of automobiles manufactured off-shore.  Canadian Auto C a r r i e r s handles the bulk of these shipments with  some c a r r y i n g by Melchins (to the Kootenays) and Stagliano.  Automobiles  from B r i t a i n , France, Germany, and Japan are commonly unloaded at deep-sea docks i n Vancouver d i r e c t l y onto the transporters f o r shipment to dealers or to temporary storage i n l o c a l outdoor l o t s .  The double-deck trans-  porters are designed f o r quick loading and unloading at way p o i n t s .  They  are used to some extent i n B r i t i s h Columbia to carry t r a d e - i n v e h i c l e s from the dealer to a more favourable marketing l o c a t i o n .  Triple-deck r a i l  transporters f o r automobiles have v i r t u a l l y supplanted highway transport for  long-distance hauling of Canadian-built and American-built automobiles. One.large shipper of automobiles stated that automobiles transported  by r a i l are subject to more damage than by (paved) r o a d - f l y i n g gravel from the  r a i l bed causes dents and chipped paint on the body as w e l l as broken  windows, and smoke from d i e s e l locomotive exhausts causes d i s c o l o u r a t i o n and d e t e r i o r a t i o n of p a i n t .  -  45  -  Certain heavy loads such as s t e e l p l a t e , manufactured s t e e l shapes, and f a b r i c a t e d s t e e l require sturdy v e h i c l e s .  While the plant or warehouse  at o r i g i n u s u a l l y has t r a v e l l i n g overhead cranes, i t i s often necessary to provide cranes at d e s t i n a t i o n .  Arrow Transfer and Johnston Terminals  operate s p e c i a l equipment f o r loading and unloading as w e l l as f o r road t r a n s p o r t a t i o n of such loads.  A number of c a r r i e r s s p e c i a l i z e i n operating  f l a t deck t r a i l e r s f o r carrying construction machinery such as b u l l - d o z e r s , front-end loaders, and back-hoes. L i q u i d bulk materials such as petroleum products are c a r r i e d i n B r i t i s h Columbia by c o a s t a l tankers, tank barges, tank r a i l cars, and tank trucks.  Coastal tankers are u s u a l l y privately-owned, and tank r a i l cars  are  commonly owned or leased by the shipper f o r h i s e x c l u s i v e use.  There  are  several publicly-operated tank barges which have f l a t decks f o r general  cargo with tanks beneath the deck f o r carrying l i q u i d loads of the order of 100,000 g a l l o n s .  Several c a r r i e r s compete f o r highway tank truck loads,  i n c l u d i n g Tri-Mac, Rempel T r a i l Transport, Tank Truck Service, and MidWest Tankers. A disadvantage of tank truck h a u l i n g i s that bulk l i q u i d t r a f f i c tends to be only one way.  Several types of tank t r a i l e r s have been s p e c i a l l y  designed to haul bulk l i q u i d s i n one d i r e c t i o n and other f r e i g h t i n the r e t u r n d i r e c t i o n and are used i n B r i t i s h Columbia.  One t r a i l e r design i s  e s s e n t i a l l y a tank on wheels w i t h the tank having a wide f l a t top so that i t "doubles" as a flat-deck t r a i l e r .  Another design uses a narrow tank  w i t h s t r a i g h t v e r t i c a l sides and provides two to three feet width of f l a t deck along both sides of the t r a i l e r . compartments—the  A new t r a i l e r design has three,  fore and a f t compartments designed f o r bulk l i q u i d s ,  and the centre compartment ruggedly constructed and designed f o r mine ore.  - 46 Bethlehem Copper i s a shipper c u r r e n t l y using t h i s type of t r a i l e r . Refrigerated t r a i l e r s are used f o r t r a n s p o r t a t i o n of fresh meat, f i s h , and vegetables, p a r t i c u l a r l y f o r the longer runs i n hot weather such as from Vancouver to points i n the Okanagan V a l l e y .  Fresh meat i s commonly  kept i n packing house coolers at 33 F to 38 F. Adequate c o n t r o l of temperature i s necessary to prevent spoilage and to maintain a t t r a c t i v e appearance.  For many runs during the year, fresh meat i s c a r r i e d i n  t r a i l e r s which do not have mechanically-driven r e f r i g e r a t i o n p l a n t s , but i n which the packages and the voids have been "spray-blasted" with frozen carbon d i o x i d e .  Carcasses are packed i n " s t o c k i n e t t e s " that help to main-  t a i n shape, and cut meats are wrapped i n paper and packed i n corrugated cardboard boxes.  With t h i s handling technique, the r e s i d u a l c h i l l from  the packing house cooler i s normally retained u n t i l the meat i s t r a n s f e r r e d to the consignee. A new technique being used i n truck t r a i l e r s c a r r y i n g fresh vegetables from C a l i f o r n i a to Vancouver i s to maintain a nitrogenr i c h (oxygen-poor) atmosphere which retards spoilage, e s p e c i a l l y of l e a f vegetables.  This technique i s not yet i n use for d i s t r i b u t i o n shipments  out of the Lower Mainland or f o r shipments from vegetable growing centres i n the province. An example of s p e c i a l transport equipment r e l a t i n g c l o s e l y to operation of the shipper's plant i s found i n Lenkurt E l e c t r i c .  Lenkurt  frequently supplies from i t s Burnaby plant p r a c t i c a l l y a l l of the e l e c t r o n i c assemblies f o r a complete radio communications network, c o n s i s t i n g of a s e r i e s of s u b s t a n t i a l l y s i m i l a r f i x e d stations located perhaps 30 to 40 miles apart.  The customary procedure has been to make a factory run o f  one or more assemblies which are then shipped to a gathering warehouse near the construction s i t e s , followed by factory runs of other assemblies which  - 47  -  are also shipped to the gathering warehouse.  The i n s t a l l a t i o n team then  draws assemblies from t h i s warehouse to begin f i e l d c o n s t r u c t i o n .  In  many instances, f i e l d construction begins before factory runs are complete. While t h i s procedure may be e f f i c i e n t i n factory production, i t tends to be quite i n e f f i c i e n t i n the i n s t a l l a t i o n phase.  Lenkurt has j u s t s t a r t e d  an experimental i n s t a l l a t i o n i n which the e n t i r e equipment for one or more s t a t i o n s i s loaded i n a van f o r d e l i v e r y to or near the i n s t a l l a t i o n s i t e . The van being used i s a s p e c i a l " a i r r i d e " van which i s supplied by United Van Lines and uses a pneumatic suspension system.  For these  experimental shipments, the e l e c t r o n i c components are not packed i n boxes or crated but are i n s t a l l e d i n t h e i r customary nine foot high operating racks which are mounted securely i n the van.in t h e i r normal v e r t i c a l p o s i tion.  This procedure can provide several economies, notably i n savings i n  time f o r dismantling a f t e r factory t e s t s , packaging time and m a t e r i a l s , and unpacking and reassembly time at the job s i t e .  The major economy w i l l be  i n i n s t a l l a t i o n time because an e n t i r e s t a t i o n can be completed i n one session without repeated call-backs to a gathering warehouse.  Success, of  course, i s completely dependent on absence of damage during t r a n s i t , but t e s t s elsewhere i n s i m i l a r " a i r r i d e " vans have indicated that good r e s u l t s can be expected. During interviews with shippers, two new concepts of s p e c i a l equipment were mentioned that provide c a r r i e r s w i t h opportunities to compete f o r business. One concept i s the "fishy-back" barge which i s designed to handle truck t r a i l e r s f o r water shipment. apply as f o r r a i l piggy-back, s e r v i c e . trailer.  The same advantages  The other concept i s the "skin-back"  The conventional t r a i l e r simply backs up to a loading door and  loads or unloads from the back.  In the "skin-back" design, the t r a i l e r  - 48 c o v e r can s l i d e i n channels a l o n g each s i d e o f t h e deck. backs t h e t r a i l e r  A f t e r the t r a c t o r  i n t o a dock, t h e c o v e r - r e l e a s e mechanism i s o p e r a t e d  and t h e t r a c t o r d r i v e s f o r w a r d , p u l l i n g t h e cover c o m p l e t e l y c l e a r o f the deck. overhead  Loading  ( o r u n l o a d i n g ) can then proceed from b o t h s i d e s and  as w e l l as from t h e b a c k .  T h i s d e s i g n o f f e r s some important  advantages i n q u i c k l o a d i n g and u n l o a d i n g , and i n p l a c i n g l o a d s f o r f a v o u r able d i s t r i b u t i o n of weight.  A major advantage i s i n g a i n i n g access t o  p a r t i c u l a r f r e i g h t without f i r s t r e q u i r i n g to unload other f r e i g h t . a conventional t r a i l e r  When  i s s c h e d u l e d t o make m u l t i p l e s t o p s , l o a d i n g i s  u s u a l l y c a r e f u l l y planned so t h a t f r e i g h t i s p l a c e d i n the t r a i l e r i n r e v e r s e o r d e r t o t h e o r d e r o f s t o p s : f r e i g h t f o r t h e f i n a l s t o p i s loaded first,  and f o r t h e i n i t i a l  s t o p i s loaded l a s t .  T h i s p a t t e r n can be  d i s t u r b e d when f r e i g h t f o r some d e s t i n a t i o n i s r e c e i v e d a f t e r f r e i g h t f o r l a t e r d e s t i n a t i o n s has a l r e a d y been l o a d e d , o r when a d e s t i n a t i o n must be by-passed  f o r any r e a s o n , o r s i m p l y when e r r o r s a r e made i n l o a d i n g .  T h i s a c c e s s problem would almost d i s a p p e a r when u s i n g a " s k i n - b a c k " trailer.  T h i s i s a new d e s i g n , and t h e r e may be some t e c h n i c a l problems  i n t h e d e s i g n o f t h e cover and t h e s e a l between t h e cover and t h e deck, b u t t h e s e problems can be s o l v e d .  A more s e r i o u s problem  i s that loading  docks must be r e d e s i g n e d t o t a k e f u l l advantage o f t h e s k i n - b a c k d e s i g n . The  t r a i l e r s h o u l d be a b l e t o back c o m p l e t e l y i n s i d e t h e warehouse so t h a t  the deck w i l l be f l u s h w i t h t h e l o a d i n g p l a t f o r m a t b o t h s i d e s and t h e back, and t h e t r a c t o r must have s u f f i c i e n t f r e e space t o move f o r w a r d f o r f u l l r e t r a c t i o n of the cover.  - 49 5.9  Shipment Tracing Shipment t r a c i n g i s needed when shipments are l o s t through t h e f t ,  m i s d i r e c t i o n , or accident, i n order to a l l o c a t e r e s p o n s i b i l i t y f o r the loss.  Good performance i n t r a c i n g a shipment i s p r i m a r i l y a matter of  developing an adequate procedure using e f f e c t i v e documentation, and ensuring that everyone concerned follows the procedure c o r r e c t l y .  No  doubt some c a r r i e r s become l a x on occasion and f i n d i t impossible to trace a l o s t shipment, but none of the shippers interviewed considered t h i s to be a serious problem.  The incidence of l o s t shipments tends to vary  i n v e r s e l y w i t h the s i z e of the shipment and d i r e c t l y with the range of s i z e s of shipments t r a v e l l i n g together.  The Post O f f i c e Department, which  handles a large volume of small packages, has a remarkably  good performance  i n absence of l o s s e s . 5.10  Promptness of Claims  Settlement  Promptness of claims settlement by c a r r i e r s was not mentioned by any shipper interviewed as being a serious problem.  A l e r t organisations  are aware of the a d m i n i s t r a t i v e costs to both the shipper and the c a r r i e r involved i n prolonged wrangling over a claim--such costs can e a s i l y exceed the t r a n s p o r t a t i o n revenue, or even the f u l l value of the merchandise. Several of the shippers mentioned the importance to them of dealing only w i t h f i n a n c i a l l y sound c a r r i e r s who are able to guarantee loss and damage claims.  One c a r r i e r who has a monopoly on a p a r t i c u l a r route was said to  have a p o l i c y of completely ignoring a l l claims! 5.11  Information Service Information s e r v i c e from most c a r r i e r s i s apparently adequate, and  there were no complaints on t h i s f a c t o r among the shippers interviewed.  - 50 I t should be noted that the routes of p u b l i c modes of transport i n B r i t i s h Columbia are quite straightforward w i t h r e l a t i v e l y l i t t l e opportunity f o r interchange, and also that the c o n s o l i d a t i o n i n r a t e t a r i f f s has markedly s i m p l i f i e d the r a t e s t r u c t u r e . T a r i f f s s t i l l appear to be unduly complicated, but shippers are r e a d i l y able to obtain copies of at least c e r t a i n rate t a r i f f s which they can study at l e i s u r e .  As c a r r i e r s grow i n s i z e ,  information s e r v i c e becomes more r o u t i n i s e d and normally i s quick and accurate. 5.12  Competence of S o l i c i t o r s Comments made by shippers during interviews i n d i c a t e d that the  commonly accepted rank order of preference among modes for competence of s o l i c i t o r s would be a i r transport f i r s t , followed by r a i l and then by road. Very few comments were made about s o l i c i t o r s f o r water transport, and i t could only be assumed that s o l i c i t a t i o n f o r water transport i s not extensive.  Water transport has been omitted from the rank order.  However, the  degree of preference was not very strong, and the impression gained  was  that the impact of s o l i c i t a t i o n i s seldom a determining f a c t o r i n the choice of mode. S o l i c i t o r s f o r the large a i r l i n e s are mainly concerned w i t h n a t i o n a l and i n t e r n a t i o n a l markets and do not devote much a t t e n t i o n to t r a f f i c w i t h i n B r i t i s h Columbia.  However, there are about t h i r t y a i r charter  services i n the province, and i t can be expected that they are generally competent. Several of the shippers interviewed commented that there has been a marked improvement i n the c a l i b r e of sales a c t i v i t y by the r a i l r o a d s over the past f i v e years.  Sales contacts have changed from the " c o f f e e - c a l l "  s t y l e which had been c h a r a c t e r i s t i c for many years, and are now made by  - 50A s o l i c i t o r s who have obviously had some thorough sales t r a i n i n g , who are concerned with the image of the r a i l r o a d , and have a good grasp of what they are s e l l i n g . As a r u l e , s o l i c i t o r s for the trucking companies are e x - d r i v e r s . While ex-drivers no doubt know a good deal about physical handling of shipments, they are not necessarily effective  in s e l l i n g .  One shipper  interviewed said that while s o l i c i t o r s for trucking companies were very pleasant and very w i l l i n g , they were t o t a l l y ignorant of his rather s p e c i a l needs; another shipper commented that they were "a sorry l o t " .  CHAPTER VI PRIVATE TRANSPORTATION There are many organisations  i n B r i t i s h Columbia that operate  p r i v a t e f r e i g h t t r a n s p o r t a t i o n f a c i l i t i e s , but most of these are i n urban road transport.  P r i v a t e f a c i l i t i e s i n other modes are of minor s i g n i f i -  cance and mostly for carrying personnel.  There are some i n d u s t r i a l  railways used i n logging and mining operations,  i n c l u d i n g the two logging  systems mentioned i n section 2.2.above ( t o t a l l i n g 136 miles of track) and two short l i n e s of Cominco i n the Trail-Kimberley area t o t a l l i n g 13 miles. P r i v a t e road t r a n s p o r t a t i o n f a l l s into three main groups: 6.1  trucking used by the e x t r a c t i v e i n d u s t r i e s , notably  logging  and mining 6.2  urban t r u c k i n g , composed or multitudinous  pick-up and d e l i v e r y  v e h i c l e s for consumer goods, raw m a t e r i a l s , f i n i s h e d goods, and f o r the many service i n d u s t r i e s 6.3  long-haul  Trucking  trucking f o r d i s t r i b u t i o n service  i n the logging and mining i n d u s t r i e s i s a large subject,  which i s beyond the scope of t h i s study. No aggregate s t a t i s t i c s are kept on urban f r e i g h t movement by p r i v a t e and p u b l i c means, but the t o t a l a c t i v i t y i s very s u b s t a n t i a l and  P r i v a t e r a i l f a c i l i t i e s are generally being replaced by trucking both because many new areas of production are almost i n a c c e s s i b l e by r a i l due to steep grades, and because of great t e c h n i c a l improvement i n t r u c k s .  -  51A-  i n terms o f t o n - m i l e a g e i n B r i t i s h Columbia, p r o b a b l y exceeds  the i n t e r -  c i t y f r e i g h t movement. Many o f the o r g a n i s a t i o n s t h a t o p e r a t e t h e i r own v e h i c l e s s u p p l y o n l y a s m a l l f r a c t i o n o f t h e i r own needs and supplement public freight  transportation f a c i l i t i e s .  viewed use t h e i r own  their fleet with  A few o f the s h i p p e r s i n t e r -  t r u c k s f o r p a r t o f t h e i r t r a n s p o r t a t i o n needs.  s h i p p e r s i n c l u d e the b r e w e r i e s , the major department  Such  s t o r e s , meat p a c k e r s ,  e l e c t r i c a l m a n u f a c t u r e r s , p e t r o l e u m r e f i n e r s , and s u p p l i e r s o f d r u g s , d a i r y p r o d u c t s , b a k e r y p r o d u c t s , i n d u s t r i a l s u p p l i e s , and c o n s t r u c t i o n  machinery.  Some s h i p p e r s c o n t r a c t a l l o f t h e i r r e q u i r e m e n t s t o a t r u c k i n g company; f o r example, Simpsons-Sears  has a l l o f i t s domestic d e l i v e r y h a n d l e d by  Johnston Terminals. The o n l y l o n g - h a u l p r i v a t e t r u c k e r i n d i s t r i b u t i o n s e r v i c e i s Macdonalds C o n s o l i d a t e d , s u p p l y i n g Canada Safeway s t o r e s throughout p r o v i n c e from i t s food warehouse complex i n Burnaby. 65 t r a i l e r s  the  Macdonalds o p e r a t e s  ( w i t h a f l e e t o f about 40 t r a c t o r s ) b u t r e s t r i c t s i t s h a u l i n g  t o G r e a t e r Vancouver worthwhile back-haul.  and t o r o u t e s i n the p r o v i n c e where t h e r e i s a F o r example, i t s p r i v a t e f l e e t h a u l s t o Safeway  s t o r e s i n the Okanagan V a l l e y , and b a c k - h a u l s v e g e t a b l e s , f r u i t ,  fruit  j u i c e s , and o u t p u t from t h e i r own cannery a t Summerland; i t a l s o o p e r a t e s throughout t h e F r a s e r V a l l e y , w i t h a b a c k - h a u l o f v e g e t a b l e s , b e r r i e s , fruit.  and  As a p r i v a t e o p e r a t o r , b a c k - h a u l , o f c o u r s e , i s l i m i t e d t o goods  f o r d i s t r i b u t i o n o n l y through Canada Safeway s t o r e s . the e a s t Kootenays  Other areas such as  and the C a r i b o o do n o t p r o v i d e t h e o p p o r t u n i t y f o r back-  h a u l , and Macdonalds C o n s o l i d a t e d s u p p l i e s these areas through p u b l i c carriers.  Safeway s t o r e s i n the Dawson C r e e k - F o r t S t . John a r e a are s u p p l i e d  from n o r t h e r n A l b e r t a , and t h e F e r n i e a r e a i s s u p p l i e d from C a l g a r y .  CHAPTER V I I OTHER MODES Two other modes of f r e i g h t transport that have a recognised i n B r i t i s h Columbia are scheduled bus service and mail s e r v i c e . the shippers  place  Many o f  interviewed use both of these modes extensively f o r small  shipments. Bus shipment u s u a l l y requires packages to be delivered d i r e c t l y to a terminal or to the bus d r i v e r at a scheduled stop, and be picked up at a terminal or from the d r i v e r at a scheduled stop.  However, bus service  i s sometimes the most convenient method o v e r a l l of handling a small shipment—because of frequent service and reasonable charges — and both taxicab and pick-up and d e l i v e r y services are commonly used to r e l a y packages to and from the bus. M a i l s e r v i c e , of course, i s a complete t r a n s p o r t a t i o n system i n itself.  I t o f f e r s short time i n t r a n s i t , r e l a t i v e l y low charges (which  can be paid by stamps or postage meter without the necessity of seeing a Post O f f i c e employee), widely placed pick-up p o i n t s , d e l i v e r y d i r e c t to the consignee at p r a c t i c a l l y any l o c a t i o n , frequent pick-up schedules and d e l i v e r y schedules, and very good performance i n terms of loss and damage. In short, f o r shipments of reasonable s i z e (and subject to c e r t a i n r e s t r i c t i o n s ) , mail represents  the most complete service offered by any  t r a n s p o r t a t i o n agency. The Post O f f i c e Department i t s e l f i s a large user of t r a n s p o r t a t i o n f a c i l i t i e s , and takes p a r t i c u l a r care i n maintaining  schedules.  Arrange-  ments with f r e i g h t c a r r i e r s to handle mail are u s u a l l y made a f t e r c a r e f u l  - 53 a n a l y s i s of p u b l i c l y - c a l l e d tenders has been made by the Post O f f i c e Department and recommendations have been r a t i f i e d (normally f o r four-year periods) by Federal Treasury Board minutes.  M a i l i s c a r r i e d extensively  by truck rather than by r a i l because of more favourable scheduling, f a s t e r t r a n s i t , and the f l e x i b i l i t y of door-to-door s e r v i c e . With some minor exceptions, trucks that carry mail are required to carry mail e x c l u s i v e l y . F i r s t c l a s s mail i s c a r r i e d by a i r ( i n Canada) whenever t h i s w i l l r e s u l t i n f a s t e r d e l i v e r y than by other modes. Steps taken r e c e n t l y by the Federal Government to c o n t r o l costs and increase revenue i n the Post O f f i c e Department w i l l r e s u l t i n somewhat c u r t a i l e d s e r v i c e and higher postage charges--which w i l l lead to some changes i n shipment patterns f o r small packages i n B r i t i s h Columbia.  CHAPTER V I I I OBSERVATIONS AND CONCLUSIONS 8.1  Adequacy of Competitive Factors Examined The s i x inter-modal competitive f a c t o r s i n Table 4.1 and the twelve  intra-modal competitive f a c t o r s i n Table 3.1 have been used i n t h i s study as the basis f o r examining the s t r u c t u r e of competition i n the B r i t i s h Columbia f r e i g h t t r a n s p o r t a t i o n industry. These f a c t o r s have been found to be quite adequate f o r the purpose; there were no relevant comments made by any of the persons interviewed that could not be considered under one or more of these selected f a c t o r s . 8.2  L i m i t a t i o n s of the Study Although more than f o r t y interviews were h e l d , the greatest l i m i -  t a t i o n i n t h i s study has been the r e l a t i v e l y small s i z e of the interview sample out of the t o t a l population of shippers and c a r r i e r s a c t i v e i n the province.  However, the segment of the t o t a l f r e i g h t market w i t h i n the  province represented by the shippers interviewed c o n s t i t u t e s the segment f o r which there i s strongest competition among modes and among c a r r i e r s . For reasonable convenience, and the Lower Mainland.  interviews were held only i n V i c t o r i a  This r e s u l t e d i n another l i m i t a t i o n because many  of the shippers interviewed make shipments on an f.o.b. plant or f.o.b. warehouse basis and the choice of mode and c a r r i e r i s made by the purchaser. However, i n many of these instances the a c t u a l choice i s strongly influenced by the shippers and by the a c t i v i t i e s of the c a r r i e r s who are headquartered i n the Lower Mainland.  - 55 -  8.3  Modal Trends Raw materials used i n primary manufacture i n B r i t i s h Columbia are  transported to manufacturing centres l a r g e l y by water and r a i l .  Construc-  t i o n m a t e r i a l s , operating supplies and consumer goods i n large measure o r i g i n a t e i n the Lower Mainland or are imported and funnel through Vancouver to o u t l y i n g p o i n t s ; carriage i s made by a l l a v a i l a b l e modes of transport. A large proportion of the raw materials and semi-finished products consumed w i t h i n the province or exported are shipped d i r e c t l y from the point of production, not passing through Vancouver.  However, a s i g n i f i c a n t  quantity of t h i s t r a f f i c i s c a r r i e d to Vancouver f o r onward shipment, again mainly outbound by deep-sea v e s s e l and r a i l . These general shipping patterns c o n s t i t u t e the framework w i t h i n which the various t r a n s p o r t a t i o n modes operate.  The economy of the  province i s expanding, and as a consequence the volume of goods transported is also expanding.  A l s o , i n some instances, the length of haul i s i n -  creasing because primary manufacturers have consumed a v a i l a b l e supplies which are close to t h e i r plants and must now reach further into the hinterland. With an expanding economy and developing technology,  there i s  considerable room for competitive a c t i v i t y to modify the share of the market taken by i n d i v i d u a l modes (and by c a r r i e r s w i t h i n those modes). The evidence i s that a l l modes are expanding i n B r i t i s h Columbia, but at d i f f e r e n t rates and i n d i f f e r e n t a c t i v i t i e s .  A very noticeable  feature of the operation of a l l modes i s that the t r a f f i c i s l a r g e l y one-way.  In many instances, r e t u r n t r a f f i c a v a i l a b l e i s i n s i g n i f i c a n t .  Even empty containers are normally returned free of charge.  One  - 56 d i f f i c u l t problem i s that t r a n s p o r t a t i o n v e h i c l e s are often unsuitable to carry whatever back-haul t r a f f i c does happen to be a v a i l a b l e , but t h i s problem i s being met at l e a s t i n some degree i n every mode by imaginative design of multi-purpose v e h i c l e s . Water t r a f f i c i s growing i n carriage of bulk m a t e r i a l s , but shrinking i n carriage of general commodities, l o s i n g mainly to road t r a f f i c .  The  development of "fishy-back" service can be expected to win back some of the t r a f f i c already l o s t to t r u c k i n g .  Extensive c a p i t a l expenditures are  being made to expand and modernise the c o a s t a l f l e e t of tow-boats and barges. R a i l t r a f f i c i s growing, p r i m a r i l y i n handling carload l o t s .  C.N.R.  and C.P.R. appear to be concentrating on improving e f f i c i e n c y and promoting integrated services with trucking and other a f f i l i a t e d  f a c i l i t i e s , but  the P.G.E. i s h e a v i l y engaged i n extending i t s l i n e s to reach untapped n a t u r a l resources i n the province, p a r t i c u l a r l y i n the north. Road t r a f f i c i s growing much more r a p i d l y than water or r a i l , and the high growth rate can be expected to continue as the highway system expands and as v e h i c l e designs improve. province  The trucking industry i n the  i s characterised by a large number of small operators with a few  large ones.  There i s a noticeable trend towards larger s i z e of i n d i v i d u a l  operators, and frequent mergers and a c q u i s i t i o n s can be expected. tedly some of the p r i v a t e companies w i l l "go p u b l i c " .  Undoub-  There appears to  be a hardening of f r e i g h t charges, p a r t i c u l a r l y as labour costs r i s e , and there i s a trend towards i s s u i n g common rate t a r i f f s with a number of p a r t i c i p a t i n g operators.  The speed and f l e x i b i l i t y of trucking  continue  to be i t s strong p o i n t s . While the growth rate of a i r f r e i g h t w i t h i n B r i t i s h Columbia i s  - 57 p o s s i b l y the highest of a l l modes, the high cost of operating a i r c r a f t and l i m i t a t i o n s due to weather conditions and a v a i l a b i l i t y of s u i t a b l e aerodromes preclude any heavy impact on handling bulk m a t e r i a l s . 8.4  Monopolies and Over-service There are very few instances of monopoly operations i n the  t r a n s p o r t a t i o n industry i n B r i t i s h Columbia.  Almost a l l of the 78  economic areas have a choice of modes and a choice of c a r r i e r s w i t h i n the modes (see Appendix I ) . There are a number of areas served by only one r a i l r o a d , but they are generally served also by highway. , A few of the c o a s t a l areas are served v i r t u a l l y only by water, but there are competitive c a r r i e r s .  The only monopolies worthy of note are water trans-  port by Northland Navigation to small centres along the west and east coast of Vancouver I s l a n d ; road transport by Squamish Transfer from Vancouver to the Squamish area; and road transport by Pender HarbourPowell River Transport (and i t s r e c e n t l y acquired s u b s i d i a r i e s ) from Vancouver to the Sechelt penninsula.  The volume of t r a f f i c c a r r i e d by  Northland Navigation to i t s smaller points of c a l l i s too small to warrant a d d i t i o n a l c a r r i e r s , and even t h i s t r a f f i c i s f a l l i n g because of competition by road c a r r i e r s as the road network grows.  Some complaints  were made by the shippers interviewed about the q u a l i t y of s e r v i c e offered by the two road monopoly operators, but again the volume of t r a f f i c i s not l a r g e .  Shippers made several references to the recent  expansion of truck s e r v i c e between Vancouver and V i c t o r i a .  Johnston  Terminals had acquired two resident V i c t o r i a c a r r i e r s , Heaney Cartage  and  Storage, and Bray's Transfer, so that the number of competing operators was reduced.  Service was o f f e r e d by several other c a r r i e r s , i n c l u d i n g  - 58 Doman-Marpole Transport, Canadian N a t i o n a l Transportation, Canadian P a c i f i c Transport Company, Arrow Transfer Company, and Commercial Truck Company. An a p p l i c a t i o n by the Victoria-based c a r r i e r C a p i t a l F r e i g h t ways to r e c l a s s i f y i t s l i c e n c e from food items only to general f r e i g h t was opposed by the other c a r r i e r s mentioned above, but was strongly supported by shippers on the basis of expected superior q u a l i t y of s e r v i c e .  The 22  a p p l i c a t i o n was approved during the 1966-1967 p r o v i n c i a l f i s c a l year and shippers interviewed claimed with c o n v i c t i o n that the superior q u a l i t y was d e f i n i t e l y being provided by C a p i t a l . There i s some degree of over-service i n the t r u c k i n g i n d u s t r y .  In  t h e i r z e a l to provide good s e r v i c e and win customers, the truckers give more frequent s e r v i c e than necessary, and there are simply too many trucks t r a v e l l i n g the routes only p a r t l y loaded.  This i s p a r t i c u l a r l y true i n  urban areas, but here the shippers must share the blame because of t h e i r widespread  tendency to regard small shipments as urgent regardless of  a c t u a l need.  As the t r u c k i n g industry gains s o p h i s t i c a t i o n i n i t s c o s t i n g  techniques, and as c o n s o l i d a t i o n of t r u c k i n g operators proceeds,  this  over-service can be expected to f a l l . Except for the p a r a l l e l r a i l s e r v i c e by C.N.R. and C.P.R. between Vancouver and Kamloops, over-service does not appear to be a problem i n modes other than road t r a n s p o r t . The recent re-alignment of a i r l i n e schedules i n B r i t i s h Columbia by Canadian P a c i f i c A i r l i n e s and P a c i f i c Western A i r l i n e s i s a forward step i n streamlining s e r v i c e and  improving  e f f i c i e n c y for both companies. 8.5  Level of S o p h i s t i c a t i o n  ^  In step w i t h the general trends towards b e t t e r a n a l y t i c a l techniques i n business and towards p r o f e s s i o n a l methods i n management, the  - 59 -  t r a n s p o r t a t i o n industry i n B r i t i s h Columbia i s becoming more s o p h i s t i c a t e d . Probably the leaders among the modes are r a i l and a i r transport.  Carriers  in the tow-boat industry and the trucking industry are l a r g e l y family businesses that have been developed by v e h i c l e operators who have become businessmen by learning business and management techniques on the job. The trucking industry i n the province  i s widely regarded as being under-  financed and p e r e n n i a l l y short of working c a p i t a l . There i s room for considerable that w i l l show managers more c l e a r l y how  improvement i n accounting techniques t h e i r costs are d i s t r i b u t e d and  consequently where improvements can be made. There i s also a need f o r more uniformity i n accounting procedures to a s s i s t i n comparisons between c a r r i e r s , and between a selected c a r r i e r and the industry aggregate. E l e c t r o n i c computers have many e x c e l l e n t a p p l i c a t i o n s i n the t r a n s p o r t a t i o n industry.  They are widely used by the r a i l r o a d s and major  a i r l i n e s , but with one or two exceptions they are j u s t beginning to be used by t r u c k i n g companies i n the  province.  There are numerous opportunities for economies i n the f i e l d of materials handling.  There have been great improvements i n pack-  aging of commodities that enable extensive use of u n i t i z i n g and zing techniques.  general  palleti-  However, employment of these techniques i s l i m i t e d to  some extent by handling f a c i l i t i e s both at source and at d e s t i n a t i o n . Many truck pick-ups and d e l i v e r i e s are made at premises that do not have platforms packages.  at the l e v e l of the truck deck to f a c i l i t a t e t r a n s f e r of Some trucks are equipped with h y d r a u l i c a l l y - o p e r a t e d t a i l gates  which are very e f f e c t i v e , but l i m i t e d to smaller packages.  Packages must  often be man-handled and so must be l i m i t e d i n s i z e and weight.  Fork-lift  - 60 trucks are used extensively by the larger warehouses, but they are too expensive for the smaller premises.  Low-cost hand-operated p a l l e t  l i f t e r s are a v a i l a b l e , but not widely used. An area that appears to o f f e r good p o t e n t i a l i s expansion of the use of medium-size c o n t a i n e r s — s a y  40 to 60 cubic feet i n volume, and  preferably c o l l a p s i b l e f o r empty r e t u r n .  Several shippers  interviewed  already use such containers, and enjoy the b e n e f i t s of f a s t e r stowing, reduced handling, fewer breakages and losses and lower f r e i g h t charges, but i t appears that much wider use could be made. 8.6  Marketing O r i e n t a t i o n In many comtemporary i n d u s t r i e s , there i s a decided trend i n  operating companies towards re-alignment of company p o l i c y and extensive r e - o r g a n i s a t i o n for the company to become "marketing-oriented".  Kotler  23 defines marketing  as "the analyzing, o r g a n i z i n g , planning, and c o n t r o l l i n g  of the firm's customer-impinging resources, p o l i c i e s , and a c t i v i t i e s with a view to s a t i s f y i n g the needs and wants of chosen customer groups at a profit."  This trend i s not a l t r u i s t i c but undertaken as an opportunity  to b e t t e r e x p l o i t the market and to improve p r o f i t s .  The trend towards  marketing o r i e n t a t i o n i s most obvious among companies producing tangible products but the p r i n c i p l e s are the same for companies i n the s e r v i c e industries.  Marketing  o r i e n t a t i o n can be seen i n the r a i l r o a d industry  but i s v i r t u a l l y non-existent Columbia.  i n the t r u c k i n g industry i n B r i t i s h  There are some s i g n i f i c a n t opportunities here f o r competitive  activity. Since the C.N.R. and C.P.R. have aggressively entered the trucking industry, and since they both have a f f i l i a t e d a i r transport and water transport f a c i l i t i e s , they are promoting the concept of an integrated  - 61 all-mode t r a n s p o r t a t i o n service dealing w i t h a s i n g l e agency.  An example  of an a p p l i c a t i o n of t h i s concept by C.P.R. i s the supply of petroleum products from a r e f i n e r y i n Calgary t o the c o n s t r u c t i o n s i t e f o r the Mica Dam.  Products are c a r r i e d by r a i l tank cars from Calgary to Revelstoke  where C.P.R. operates a transfer plant w i t h necessary tankage.  Then  C.P.T. (the t r u c k i n g arm of C.P.R.) loads tank trucks at Revelstoke and d e l i v e r s to a bulk plant operated by the o i l company at the c o n s t r u c t i o n site.  A r a i l t a r i f f i s published from Calgary through to Mica Dam. An example of C.N.R.'s "Cargo-Flo" concept i s the t r a n s p o r t a t i o n of  Portland cement by a combination of r a i l car and road v e h i c l e .  The  Portland cement i s t r a n s f e r r e d from the r a i l car t o the truck using s p e c i a l blowers. The Peace River area of B r i t i s h Columbia has t r a d i t i o n a l l y been supplied from A l b e r t a centres such as Edmonton and Grande P r a i r i e .  The  Northern A l b e r t a Railway and Highway 2 both extend from Edmonton through Grande P r a i r i e and on to Dawson Creek i n the Peace River area.  Since  completion of the P.G.E. extension to Dawson Creek and Fort St. John i n 1958, the P.G.E. has e n e r g e t i c a l l y s o l i c i t e d t r a f f i c f o r t h i s area, w i t h considerable success. 8.7  Existence of Vigorous Competition The p u b l i c f r e i g h t t r a n s p o r t a t i o n industry i n B r i t i s h Columbia has  a long h i s t o r y of development.  The t r a n s p o r t a t i o n networks are both  cause and e f f e c t of economic a c t i v i t y and have evolved through competitive interaction. The modal shares i n the t r a n s p o r t a t i o n market are strongly influenced by technology and geography.  There i s ample evidence of competitive  - 62 a c t i v i t y in every mode seeking to improve its absolute l e v e l of p a r t i c i pation in the market i f not i t s modal share.  Capital investment  continues  in every mode in the province and there is steady progress in the development of new vehicles and materials handling equipment. The r a i l r o a d s operate as an oligopoly, modified by individual geographic advantage.  In the other modes, there are r e l a t i v e l y large  numbers of competitors, p a r t i c u l a r l y in the trucking segment of the industry.  With generally r i s i n g costs and a growing awareness of the need  for e f f i c i e n t  operation, intra-modal competition is becoming more sharply  defined, and w i l l modify as the number of competitors is reduced through a continuing program of acquisitions and mergers. With p a r t i c u l a r reference to the transport of commodities from Greater Vancouver origins to B r i t i s h Columbia destinations,  the evidence  examined in this study reveals that competition is healthy and vigorous and w i l l undoubtedly grow in i n t e n s i t y .  - 63 FOOTNOTES  National I n d u s t r i a l Conference Board, "The ABC of GNP", The Canadian Economy: Selected Readings, Edited by John J . Deutsch, Burton S. K e i r s t e a d , K a r i L e v i t t , and Robert M. W i l l , (revised e d i t i o n ; Toronto: The Macmillan Company of Canada Limited, 1965), pp. 48-49. 2 Province of B r i t i s h Columbia Bureau of Economics and S t a t i s t i c s , Manual of Resources and Development--British Columbia, ( V i c t o r i a : Queen's P r i n t e r , 1967), p. 1. 3 Province of B r i t i s h Columbia Bureau of Economics and S t a t i s t i c s , Regional Index of B r i t i s h Columbia, ( V i c t o r i a : Queen's P r i n t e r , January, 1966), p. v. 4 Canadian Imperial Bank of Commerce, " B r i t i s h Columbia", Commercial L e t t e r , (Toronto; May-June, 1966) \ h e Canadian Oxford Desk A t l a s of the World, (Toronto: Oxford U n i v e r s i t y Press, 1957). The Reader's Digest Great World A t l a s , (Montreal: The Reader's Digest A s s o c i a t i o n (Canada) Limited, 1962). ^Province of B r i t i s h Columbia Bureau of Economics and S t a t i s t i c s , Manual of Resources and Development--British Columbia, ( V i c t o r i a : Queen's P r i n t e r , 1967) 8  Ibid.  9 Canada Dominion Bureau of S t a t i s t i c s , Canada One Hundred 1867-1967, (Ottawa: Queen's P r i n t e r , 1967), p. 207. 1 0  Ibid.,  p. 208.  1 1  Ibid.,  p. 210.  1 2  Ibid.,  p. 210.  13 "Now, F u l l Steam Ahead to Resource-Rich I n t e r i o r " , The F i n a n c i a l Post, V o l . L X I I I , No. 8, (February 22, 1969), pp. 37-38. 14 Province of B r i t i s h Columbia Department of Commercial Transport, Annual Report, 1967, ( V i c t o r i a : Queen's P r i n t e r , 1968), p. GG25.  - 64 -  ''""'"B.C. Tugboat Operators Expect Another Good Year", The Globe and M a i l Report on Business, February 20, 1969, p. B9. "^Canada Surveys and Mapping Branch, Canadian Aerodrome D i r e c t o r y , (Ottawa: Queen's P r i n t e r , A p r i l , 1968). "^Province of B r i t i s h Columbia Bureau of Economics and S t a t i s t i c s , Regional Index of B r i t i s h Columbia, ( V i c t o r i a : Queen's P r i n t e r , January, 1966) . 18 Research Bureau, C a r r i e r and Equipment Preference Study of Canadian I n d u s t r i a l Shippers, (Toronto: Southam Business P u b l i c a t i o n s L i m i t e d , A p r i l , 1968), p. 3. 19 Province of B r i t i s h Columbia Bureau of Economics and S t a t i s t i c s , " S t a t i s t i c a l Supplement to the Regional Index of B r i t i s h Columbia", ( V i c t o r i a : Department of I n d u s t r i a l Development, Trade, and Commerce, January, 1968) (Mimeographed). 20 B r i t i s h Columbia Freight T a r i f f No. 20, issued by H.H. Williamson* Agent, (Burnaby, B.C., f i r s t issued November 7, 1967 and subject to continuous revis ion). 21 Province of B r i t i s h Columbia Department of Commercial Transport, Annual Report, 1967, ( V i c t o r i a : Queen's P r i n t e r , 1968), p. GG25. 22 Province of B r i t i s h Columbia P u b l i c U t i l i t i e s Commission, Annual Report on Motor C a r r i e r s , 1966-1967, ( V i c t o r i a : Queen's P r i n t e r , 1967), pp. 12-13. 23 P h i l i p K o t l e r , Marketing Management: A n a l y s i s , Planning, and C o n t r o l , (Englewood C l i f f s , New Jersey: P r e n t i c e - H a l l , Inc., 1967), p. 12.  - 65 BIBLIOGRAPHY Canada, Dominion Bureau of S t a t i s t i c s . Ottawa: Queen's P r i n t e r , 1967.  Canada one Hundred 1867-1967.  Canada, Surveys and Mapping Branch, Department of Energy, Mines and Resources. Canadian Aerodrome D i r e c t o r y . Ottawa: Queen's P r i n t e r , A p r i l , 1968. Canadian Imperial Bank of Commerce. Toronto, May-June, 1966.  " B r i t i s h Columbia", Commercial L e t t e r .  K o t l e r , P h i l i p . Marketing Management: A n a l y s i s , Planning, and C o n t r o l . Englewood C l i f f s , New Jersey: P r e n t i c e - H a l l , Inc., 1967. National I n d u s t r i a l Conference Board. "The ABC of GNP", The Canadian Economy: Selected Readings. Edited by John J . Deutsch, Burton S. K e i r s t e a d , K a r i L e v i t t , and Robert M. W i l l . Revised e d i t i o n . Toronto: The Macmillan Company of Canada Limited, 1965. Province of B r i t i s h Columbia, Bureau.of Economics and S t a t i s t i c s , Department of I n d u s t r i a l Development, Trade, and Commerce. Manual of Resources and Development--British Columbia. V i c t o r i a : Queen's P r i n t e r , 1967. . Regional Index of B r i t i s h Columbia. P r i n t e r , January, 1966.  V i c t o r i a : Queen's  . " S t a t i s t i c a l Supplement to the Regional Index of B r i t i s h Columbia". V i c t o r i a : Department of I n d u s t r i a l Development, Trade, and Commerce, January, 1968. (Mimeographed). Province of B r i t i s h Columbia Department of Commercial Transport. Annual Report, 1967. V i c t o r i a : Queen's P r i n t e r , 1968. Province of B r i t i s h Columbia Public U t i l i t i e s Commission. Annual Report on Motor C a r r i e r s , 1966-1967. V i c t o r i a : Queen's P r i n t e r , 1967. Research Bureau, Southam Business P u b l i c a t i o n s Limited. C a r r i e r and Equipment Preference Study of Canadian I n d u s t r i a l Shippers. Toronto: Southam Business P u b l i c a t i o n s L i m i t e d , A p r i l , 1968. The Canadian Oxford Desk A t l a s of the World. Press, 1957. The F i n a n c i a l Post.  Toronto: Oxford U n i v e r s i t y  V o l . L X I I I , No. 8, February 22, 1969.  The Globe and M a i l Report on Business. February 20, 1969. The Reader's Digest Great World A t l a s . Montreal: The Reader's Digest A s s o c i a t i o n (Canada) Limited, 1962. Williamson, H.H., Agent. B r i t i s h Columbia Freight T a r i f f No. 20. Burnaby, B.C. ( f i r s t issued November 7, 1967 and subject to continuous r e v i s i o n ) .  A P P E N D I X  - 66 APPENDIX I TABLE OF ECONOMIC AREAS IN BRITISH COLUMBIA SHOWING NUMBER OF SCHEDULED CARRIERS ACTIVE IN EACH MODE OF TRANSPORT FROM VANCOUVER (APRIL, 1969) Region Number  Regions and Economic Areas  Number of Scheduled C a r r i e r s Water Rail Road A i r Main Branch Line Line  EAST KOOTENAY REGION Cranbrook Fernie Golden Kimberley Windermere-Lake Invermere WEST KOOTENAY REGION Arrow Lakes-Nakusp Castlegar-Kinnaird Creston-Kaslo Nelson Revelstoke Slocan Lake-New Denver Trail-Rossland 3  OKANAGAN-SIMILKAMEEN-BOUNDARY Armstrong-Spallumcheen Enderby Grand Forks Greenwood-Kettle Valley Kelowna Keremeos 01iver-Osoyoos Penticton Princeton Summerland Vernon LOWER MAINLAND REGION Abbotsford (Matsqui-Sumas) Burnaby Chilliwack Delta Coquitlam Hope-Fraser Canyon Kent-Harrison Hot Springs Langley Maple Ridge-Pitt Meadows  2 2 3 2 1 ferries barge -  barge  » 1 -  -  1 4  towing  1 1 2 1 2 1  1 1 1 1 1 1  5 -* 3 1 2 3 6 3 3 (Castlegar)*  2 1 2 1 2 1 1 1 1 2 2  5 5 2 2 6 3 4 5 4 5 6  12 (Vancouver) 5 -* 11 (Vancouver) 7 (Vancouver) 5 5 -* 4 _* 4  - 67 Region Number  Regions and Economic Areas  Number of Scheduled C a r r i e r s Water Rail Road A i r Main Branch  LOWER MAINLAND REGION (cont'd) Mission New Westminster North Vancouver Richmond Sechelt-Gibsons Landing Squamish-Howe Sound Surrey West Vancouver Vancouver VANCOUVER ISLAND REGION Alberni Vancouver Island North Campbell River Courtenay-Comox Duncan Gulf I s l a n d s - S a l t s p r i n g Ladysmith-Chemainus Lake Cowichan Nanaimo Parksville-Qualicum Beach Sooke-Jordan River Ucluelet-Tofino Greater V i c t o r i a Zeballos-Tahsis  2 -  1 3 1 1  1 2  1 3 1 4  1 3 1 1 1 2 1 1 1 1 1  SHUSWAP-CHILCOTIN Ashcroft-Clinton Kamloops Lillooett Merritt Shuswap Lake-Salmon Arm Williams L a k e - C h i l c o t i n LOWER COAST REGION Ocean F a l l s - B e l l a Coola Powell River CENTRAL INTERIOR REGION Burns Lake McBride Prince George Quesnel Smithers Vanderhoof  10 9 8 1 1 5 6 12  (Vancouver) (Vancouver) (Vancouver) -*  2 1 3 2 2 2 2 1 2 2 2 2 3 1  2 2* 1* 1  6 7 1 4 6 4 1 1  3 2  1 1  1 1 1 1 1  3 5 5 4 4 3  (Vancouver) 4  -it  1 1*  1*  1 2*  2* 1 1*  - 68 Region Number  Regions and Economic Areas  Number of Scheduled C a r r i e r s Rail Road A i r Water Main Branch Line Line  NORTH-WESTERN REGION K i t ima t-Klemtu North-West B.C. Prince Rupert Queen Charlotte I s . Stewart-Portland Canal Terrace 10  PEACE RIVER REGION Dawson Creek Fort Nelson Fort St. John  7 2 4  -* 3 2* I*  1 3 2 3  A i r charter service i s normally a v a i l a b l e .  Sources (a) Regional Index of B r i t i s h Columbia, issued by Bureau of Economics and S t a t i s t i c s . (b) Fourteenth Annual O f f i c i a l B r i t i s h Columbia Ship-by-Truck D i r e c t o r y , Automotive Transport A s s o c i a t i o n of B.C., 1968. (c) Timetables published by c a r r i e r s .  WHITEHOtZSe  69  EDMONTON  CALGARY  MAP I PRINCIPAL ROUTES OF RAIL TRANSPORT IN BRITISH COLUMBIA UNIVeiLSITY APQ.IL,  OF  COLUMBIA  &JZITISH  1969  SOURCE —•  RAILROAD MAP OF WESTERN CANADA AND ALASKA , ISSUED BY FREIGHT  CANADIAN  ASSOCIATION (UNDATED) 20  40  lO  60  too  44°N  NHITtHOQ.SE  10  EDMONTON  CALGARY  MAP 2 PRINCIPAL ROUTES Of WATER TRANSPORT IN BRITISH COLUMBIA UNiveaeiTY  OF  AAIT/SM  COCUM&IA  APAIL.I969 SOURCE  —  scneoui.es  BRITISH COAST ISLAND  OF  MAJOR  COLUMBIA FERRIES TUG  NORTHLAND  ZO  CARRIERS  LTD.  untax  49'N  &. BARGE  LTD.  NAVIGATION  40  FAIZ  FERRIES  60  CO.  0O  100  LTD  rvfli I  \  CftUKSC  11  120 W  \  —1  SKASWAY )  JUNEA  60°N  roaTNetsoH  \ \  FORT STX/OHNs', ,  STEWART  DAWSON CH.UK  HAZELTON  I  I  NDt PHAIIUE  f  \SMiTneas JPRINCE eupi  TERRACE  I  . BURNS LAKE  1 FOOT ST. JAMES  {KIT/MAT  . VANDESHOOF EDMONTON  PRINCE GEO&GE KEMANO OXEN ciuewrre CITY  Af°BRIDE JASPEH ' QIJESNEL  , NIMPO LAKE aemt eooCA  \JNIULIAMS LAKE  SANff T.GARY  MAP 3  REVELSTOKE  PRINCIPAL ROUTES OF ROAD TRANSPORT IN BRITISH COLUMBIA UNIVCASITY APB/L./9&9 SOURCE  -  OF BRITISH  — BRITISH DEPARTMENT  COLUMBIA  ROAD  OF TRAVEL  LILIOOET  COLUMBIA MAP  MEee/rr  i9ae  INDUSTRY,  VICTORIA  POH/ELISJIIVEII vamMisn  20 do bo 00  100  fPENTICTON tt/OPE  '•49'N  \  120  \  r^SKAGWAY*)  —I  V  7Z  /V 60 A/ 0  \ FORT NELSON  JUNEA  V .  ST6WAQT DAWSON CHEEK  HAZELTQN GRANDE PRAIRIE'  \SMITHEQS  MASser  WNCERUPERTS  T  £  ^  c  e  BURNS  LAKE -  » KIT!MAT  '  VANDE8H00F  JUtKATLA  YDM ON TON \ PRINCE GEORGE KEMANO #Ue£N CHARLOT T€ CITY MARSTLE fsJtNDSPIT  M  c  BRIDE JASPER  < QJJESNEL  TASUSO,  OCCAN FALLS  \  mBtUA  CCOLA  . NIMPO LAKE i WILLIAMS LAKE  SELLA BFLLA  \ NAMU BANFF CALGARY  MAP 4  ,  PRINCIPAL HOUTiS OF AIR TRANSPORT IN BRITISH COLUMBIA UNIVERSITY APIZJL,I969 SOUQJCE  -  OF BRITISH  HOL0EK \&y&£  COLUMBIA  • SCHEDULES  CANADIAN  OF MAJOS2.  CA&Q./EAIS  LTD. PACIFIC  K^UWOT^^Te&ALLQS  -CAMPBELL* ITAHSIS RIVER  h  AIZUNES  *MERR(TT  POWELltelVER  AI&UNES  WESTEGN  WNCGUVEtZ 20  _ 4c  no  ac  too  f PEN7ICT0N  LTD.  LONG- REACH  NANAIMO  y  VICTORIA  KIMbERLEY  fKELOWNAFERN CRANE&OQX  ^SWJAMISH;  PT.ALBERh e  VERNON^  " SPtTNCES »RIDG£  COMOK ' PACIFIC  . REVELSTOKE  'KAMLOCPS \  cove  PORT ALICE  &.C.AIG.UNES  CLINretry  •MOPE  +PRINCETON  

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