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Final draft : a material management and physical distribution study of C.P. Rail Northland's service Canadian Pacific Railway Company. Travelling Auditor (Vancouver) Aug 1, 1978

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 .... #
t
. FINAL DRAFT
A MATERIAL MANAGEMENT AND
PHYSICAL DISTRIBUTION STUDY
OF C.P. RAIL-NORTHLAND'S SERVICE
D. W. Francis
August 1st, 1978 r
TABLE OF CONTENTS
INTRODUCTION
CONCLUSIONS
ECONOMIC SUMMARY
Vancouver P&D
(a) W.D.S. L.T.L. & T.L.
(b) W.D.S. Consolidation
(c) W.D.S. tractor & driver rental
VANCOUVER DOCK
(a)
Facilities
(b)
Trailer equipment
(c)
Container Equipment
(d)
Container & trailer control
(e)
Fork truck equipment
(f)
Other mechanical aids
(g)
Departure times
(h)
Barge and Ramp Limitations
KITIMAT DOCK
(a) Economic effects of later arrival
(b) Economy of scale
(c) Preventive vehicle maintenance program
SKEENA MOTOR CARRIERS
(a) Routes operated
(b) Power equipment
(c) Economy of scale
(d) Lindsay's Cartage
(e) Economics of proposed split barge operation
(f) Proposed direct deliveries to Kitimat, Terrace and Prince Rupert
(g) Skeena Rates \
V
INTRODUCTION •-. . ' ' --    :   >,,.
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Northland Navigation originally operated as a heavily subsidized passenger' ■
and freight coastal steamship operation. However, in 1976 with the* cancellation of the Federal Subsidy it withdrew it's passenger and freight skips -
and.curtailed it's B.C. Coastal Service to a-twice weekly tug and barge' te--."'"
operation between Vancouver and Kitimat. A connecting highway*operation was
performed by Skeena Motor Carriers, a subsidiary, mainly between Kitimat, • '•
Terrace, Prince Rupert and Stewart.        .       ;   - ■••-■.: A3 .'"■•■.'- -3'-
We have found that the principal operating officers of both Northland and'
Skeena are steamship orientated with little knowledge in material management
and no experience in physical distribution. Further, operating for years " "
under Federal subsidy, they have no appreciation of costs." We have now
observed these operations for about six months, cataloguing many" of the .-';
functions and costing out various alternatives that would effect cost •'•"'" ■■':■.
savings and improvements in service. We found that there was'plenty of • ....
room for economy of scale, improved equipment utilization, elimination of- te-
intermediate handling, improved service, preventive maintenance," equipment "...
,. control and better prices from suppliers'.    • .  '     '. •'".".•:,': -'7- '33
'■>-.••» ■••>»
We will show how these alternatives will reduce present costs and improve :
service. Over the long term C.P. Rail Coastal Marine Services personnel .
working together." as a team can contribute towards a common goal of greater
efficiency which will have a maximum effect on the profitability of these •
operations. '"..; ".'\'3.. ':  •    -7  .'. : •       "A y - 773
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-' y-y^ ^. -■_ CONCLUSIONS
To summarize, this broad view of C.P.-Northland Services proposed
and already implemented operational changes, their impact on costs,
personnel and service, the key conclusions arrived at are:
Rapid and far-reaching changes are bringing with them a new era—
the intermodal era, which C.P.-Northland with its assets can become a
dominant operator in the Vancouver, B.C. North Coast door-to-door intermodal freight service.  Moreover, C.P.-Northland can assume a more
vital role than its predecessor because of its assets and by modernization of its equipment, facilities, and service.  However, accompanying
these developments will require important changes in labor and management relationships.
Labor today are more sharply aware of these changes and their
wants than ever before.
While labor looks instinctively to management, some have attempted
to solve their problems through collective bargaining.  We must take a
more active interest in this area.  All these developments have resulted
in management being confronted with new problems, and their solution
requires many entirely new ideas and concepts.  Although all the areas
covered in this study are deserving of management attention, I would
suggest that the most important problems fall into three broad areas.
1. Effects of change on the labor force from changes in physical distribution material handling and plant layout.
2. Mechanization, including the nature of work in tbe proposed revised
operation.
3. Management Supervision; a two-way communication, or the handling
of complaints, the development of personnel, and work guidelines
in the form of definite policies and procedures designed for sal-».
aried employees.
A number of significant long-run trends in handling of freight
has been gathering momentum during the last decade.  One of the most
dramatic of these concerns the rapidly increasing size and changing
composition of unit loads and the consolidation of unit loads into 20
or 40-foot containers.  So that the weight or volume of each lift or
interface transfer can be increased by twenty-fold; also, with several
intermediate handlings eliminated, the chassis or wheels can be left
behind to permit better cube utilization in covered barges on the longest -2-
leg of the journey.  Northland in the last decade has not pursued this
trend very actively.
To illustrate this trend a few significant figures are necessary.
Between 1957 and 1977 freight handling output per man at inter-
modal interfaces has increased about 20 times, while manpower has
decreased about 50 percent, wages have increased by about 200 percent,
and weekly hours decreased by about 20 percent.
C.P. Rail-Northland Services must now catch up with these changes
by economies of scale handling and by elimination of intermediate manhandling.  More substitution of semi-automated modern mechanical aids
and intermodal equipment to eliminate men's sweat is required.  New
equipment should be introduced to speed up the loading and unloading
intermodal process.  Emphasis should be placed on cube utilization improvement in closed barges and maximization of weight and space on our
highway trailers.
Tractor utilization improvement can be achieved by double-shifting
drivers; by renegotiating restrictive clauses in the drivers' agreement
between Kitimat and Terrace; and by bidding on contract haulage at night.
Greater highway operation, performance, and reliability could be
achieved by conversion from bias tires to radial tires.  Experience
shows that tire flats could be reduced by 85 percent and fuel savings
by 5 percent for tractors equipped and another 5 percent when trailers
are equipped.  Further preventive maintenance carried out periodically,
such as tire pressure tests, greasing, oil changes, etc. will also reduce breakdowns and delays.  The installation of automatic transmissions
and side shifting on fork trucks will speed up handling and reduce damage.
More substitution by outright purchase of equipment rather than by long-
term leasing or installment purchases.
More research, development, and implementation of new technology to
divert traffic from competition by institution of special equipment that
will reduce costs, improve service, and increase our market share of
available traffic.  As an example, collapsible Uniroyal Seal bins
(capacity 232 bags of cement) might be introduced. to divert Caustic Soda
from rail to water between Squamish and Eurocan in Kitimat.  Set up rigid
control systems to monitor containers and trailers for the purpose of
reducing turnaround time and short-term lease payments.
Substitute in-house P&D operational for present contracted cartage at Vancouver and Prince Rupert. -3-
Finally and probably the most important factor is the need to
increase revenue and improve reliability of the present service, first
by substituting a faster tug for the "Ocean Prince" and "Fury" that
would permit a later cut-off time at Vancouver and an earlier arrival
at Kitmat and Prince Rupert, particularly the Tuesday departure and
Thursday arrival.
By planning operations in advance, loading barges in priority
sequence, and by communicating with key personnel at all times. SUMMARY OF ECONOMICS
Vancouver  Obtain second-owner operated tractor with
elevated fifth x<rheel by lease from Ryder
Leasing to replace present W.D.S. tractors
handling trailer-load cartage.
Existing W.D.S. tractor on lease should
be replaced by a Ryder leased City tractor.
$35,000
$10,000
Vancouver  Movement of trailer & fork truck repair
facilities to west shed, thereby releasing
prime warehouse space closer to ramp and
reducing fork truck stem time sufficiently
to save (1) employee■= $30,000 less cost
of moving $2,000
$28,000
Vancouver  Greater use of mafi roll flats should be
made for loading bulky items such as pipe,
steel>brick, drums, aluminum castings, etc.
by assigning 4 pallet flats per sailing
with 20 and 30 tons loaded on each flat.
Present loading time 5 minutes x 10 units
x 4 pallet flats x 2 moves = 400 minutes
proposed loading time 4 pallet flats x 10
minutes «= 40 minutes.  Savings 360 minutes
at $25.00 per hour = $150 per one way move
x 4 moves per week x 50 weeks
$30,000
Vancouver
Savings in trailer rental payment are forecasted due to long-term leases, improved
utilization and conversion to containers
($30,000 already accomplished)
$75,000 -2-
Vancouver  Reduction of trailer length and width from
45 to 40 feet and from 8% to 8 feet could
provide savings. 30 trailers a month Northbound *= 150 feet reduction in length and will
allow five extra 26' trailers to be loaded.
Because of reduction in vidth 4 extra 26'
trailers or a total of 9 per month at $600
extra revenue =
$65,000
Vancouver  Economies of scale will provide savings by
moving from 12 to 20-foot containers.
Present cycle 1-12 foot = 5 minutes
Proposed cycle 1-20 foot = 5 minutes
Reduction 160-12-13 foots to 50-20 foots or
reduce time from 800 minutes to 250 minutes
Saving 550 minutes x 12 Eonths - 6,600 minutes
or 110 hours at $2,500 x 2
$ 5,000
Kitimat Greater use of Mafi pallets  same  as item
3,  plus hourly rates at  time and  a half.
$45,000
Kitimat    Container economy of scale same as item
6 plus hourly rate at tine and a half.
$ 8,000
Kitimat    Reduced handling and consolidation due to
Vancouver direct loading to Kitimat, Terrace
and Prince Rupert will reduce labor (already
2 men reduced about $40,000 further ..reduction
with complete elimination of handling $40,000)
$80,000
Kitimat    Reduced highway movement between Kitimat,
Terrace and Prince Ripert account economies of
scale 12-foot versus 20-foot containers, and B
trains versus 40- and 45-foot trailers.
$70,000
Kitimat    Overtime savings due to proposed later Vancouver departures and Kitimat arrivals account proposed split barge.  Kitimat labor
savings of $175,700 - $10,000 for Vancouver
wages at time and a half, minus $100,000
for Prince Rupert wages.
$66,000
Kitimat    Reduce mechanic's overtime by redistribution of work and elimination of unnecessary
Saturday employment.
$10,000 -3-
Kitimat    Reduce barge unloading and longshoreman's
wages by four hours Monday and 1% hours
Friday by the acquisition of a second
Ottawa shunter. $ 50,000
Kitimat    Cancel Ryder Rental agreement on two tractors when Vancouver-Prince Rupert direct
service is inaugurated. $ 60,000
Prince Rupert-
Kitimat    Reduce Kitimat-Prince Rupert highway service by about 1,000 trips per year due to
direct barge service from Vancouver to
Prince Rupert 90c per mile x 280 miles x
1,000 =say $250,000 less drop barge charges
$130,000 and cancellation of Ryder rentals
above $60,000 $ 60,000
Prince Rupert
Cancel Lindsay deconsolidation contract ?■*,
account direct delivery service from
Vancouver to Prince Rupert 20$ per cwt x
50,000 cwt $ 10,000
Kitimat-
Prince Rupert
Reduction of two round trips per week by
Lindsay Cartage with acquisition of Ryder
leased tractors $ 25,000
Terrace    Reduction of Kitimat-Terrace road trips
"•  account economy of scale, 12 to 20-foot
containers, direct loading, and operation
•   of A trains. $ 10,000
$742,000 PRESENT AND PROPOSED
VANCOUVER PICK-UP AND DELIVERY
Present Operation (August 1st, 1978)
The C.P.-Northland Traffic Department function is to control
barge space allocation and customer and trailer equipment distribution by a color code Cardex visual control board system.  Customer's
requests are completed either by space allocation when freight is
brought to the Vancouver dock by private carriage or they give instructions to Wholesale Delivery Service to spot containers and
trailers at shipper's premises.
Less than container lot traffic is consolidated by W.D.S. and
at the Vancouver dock in 12- and 20-foot containers or 26-foot
trailers, mostly for direct delivery service to Kitimat, Terrace, and
Prince Rupert.
The effects of the recently instituted direct delivery loading
system have greatly reduced rehandling of L.C.L. at Kitimat, with a
saving of two employees.  However, there is still a lot of loose freight
that continues to be manhandled at Kitimat (cooler and reefer traffic
and last-minute traffic brought to Vancouver dock).  A greater effort
is required on Vancouver direct loading to eliminate rehandling at Kitimat,
First cooler and reefer traffic should be put on a door-to-door
basis with W.D.S. doing the pick-up in their temperature-controlled
trucks and consolidating same in the proposed 26-foot reefer trailers
for direct delivery to Kitimat, Terrace, and Prince Rupert. When
insufficient cooler traffic is offered, the 26-foot reefer trailers
could be filled out with overflow dry freight.
C.P.-Northland's present leased W.D.S. tractor and driver on
weekly basis have reduced our Vancouver pick-up and delivery costs
by $25,000 annually, because we obtain about one additional movement
per day with this driver over what is experienced when pick-up and
delivery requests are handled directly by W.D.S. However, investigation shows that by leasing a City tractor from Ryder Leasing, we could
save an additional $10,000 if it were manned with a driver of Vic's
capabilities. -2-
Pick-up and delivery statistics show that there is still sufficient trailer pick-ups to justify leasing an additional tractor and
driver under our direct supervision. Further, if this tractor were
equipped with an elevated fifth wheel, it could assist and back up the
Ottawa shunter on sailing days to load trailers on barges faster and
provide a back up for the Ottawa shunter. Direct Loading from Vancouver to Customers in Kitimat, Terrace, and
Prince Rupert
Direct loading of general freight consolidated at W.D.S. and at
Vancouver dock for Kitimat, Terrace, and Prince Rupert has been successful to date.  However, we have not yet been able to institute Bill
Hickman's proposed cooler and freezer service in the same manner due
to incomplete tariff changes (door-to-door) and because all of the
proposed 26-foot reefers have not been acquired.  The proposal that
Skeena Motor Carriers take over Lindsay's present pick-up and delivery
work at Prince Rupert has not been progressed because of shortage of
power at present and the present decision not to inaugurate a direct
service to Prince Rupert, which would have released sufficient power
from Kitimat to Prince Rupert pick-up and delivery.  See Appendix I.
The economics of L.T.L. direct delivery to Kitimat, Terrace, and
Prince Rupert are:
Estimated
Annual
Saving
Elimination of Kitimat sortation $80,000
Reduction of Terrace to Kitimat road trips 10,000
Reduction of Kitimat to Prince Rupert road trips   ' 14,000
Elimination of Lindsay's deconsolidation and delivery service  10,000
Additional cost of Skeena Motor Carriers Prince Rupert P&D      - m £^-=-S£K5ffS3!iK?3
Container and Trailer Equipment
Experience shows that present inventory of 49., 20-foot I.S.O. van
containers and 50,12-foot van containers has changed shipping habits
of our customers who are shifting from 12-foot to 20-foot containers
to such a degree that the 50 remaining 12-foot containers should be
phased out, sold, and replaced by 20 second-hand 20-foot I.S.O. containers 8 feet high by 8 feet wide, if assigned to the Transporter-
covered barge would permit two high stacking of van containers lioaded
with Northbound general merchandise.  The result would be improved
cube utilization and barge revenue.
In addition, the proposed 70 odd 20-foot van containers plus 15
container chassis should provide sufficient van-type equipment to permit a large decrease in leased 26-, 40-, and 45-foot van trailers.
However, to successfully bring about this transition it will be necessary for C.P.-Northland representatives to contact and educate shippers
in the economic advantages of 20-foot containers versus present practice
of loading 26-, 40-, and 45-foot trailers.  These l-epresentativ-M should
be equipped with copies of A.A.R. circular showing recommended rrocedures
for loading, blocking, and bracing of freight in containers.* A'lsoi
with rate comparisons showing economic advantage of container use.
The present inventory of 5 P. coolers, which are awkward to stuff
(labor intensified) and to manoeuver, could be replaced by the proposed
inventory of seven 26-foot reefer trailers loaded at W.D.S. for direct
delivery in Kitimat, Terrace, and Prince Rupert, with return backhaul
of frozen fish from Prince Rupert.  The latter a new source of ravenue.
The 5 P. coolers, when no longer required, could be sold and the proceeds
used to increase 26-foot reefer trailer inventory. PROPOSED OPERATIONAL CHANGES AT
NORTHLAND'S VANCOUVER FACILITY
We now find that Northland's Vancouver property space allocation does
not take into account the economics of day-to-day operations.  For
instance, the busiest freight handling operation, tbat of unloading
local trucks with L.C.L. for stuffing into outbound containers, is
designated at opposite ends of the property.  A fork truck stem distance of a minimum of 500 feet (for every single small or multiple
shipment) is necessary.  The long stem operation is reversed on sailing
date when loaded containers are moved from.back of tbe covered warehouse to the outbound barge.
Conversely the prime facility location, protected from the elements,
is allocated to the fork truck and container maintenance and repair
operation, where handling movements are limited to one or less per
day.  Also, which houses the longshoremen's lunchroom, the unused Purchasing Department office (vacated since Purchases have been taken over
by B.C.C.S.S.) and tbe hospital space, all occupying strategical prime
warehouse space. .    -
ijtt is suggested that the west side warehouse 40' x 90' be assigned
for the maintenance function of the Vancouver operation, i.e. fork
truck preventive maintenance and repair, container maintenance and
shop, while the Longshoremen's lunchroom and the hospital should be
located in the present vacant southbound traffic office area. -2-
If these operations were removed from the main warehouse by internal
employees, the choice released space could be reassigned for the container stuffing operation, placing it within a few feet of the proposed
unloading area for L.T.L. trucks.  The proposed L.T.L. truck unloading
area would be in the south end of the covered main warehouse. This area
is now behind the employee parking, which has diminished with the staff
reductions that have taken place.  Local trucks with L.T.L, traffic
would enter the main warehouse by the existing west door and the east
door possibly could be opened up to allow their exit.  We should acquire
a portable loading dock or build a permanent wooden dock to allow L.T.L.
trucks to back up on to its south side.  Small fork trucks of 5500 lbs.
capacity could unload palletized cargo from local trucks and cross dock
and stow it parked containers on the north side.  This would drastically
reduce the present fork trucks stem time and reduce a labour-intensified
unloading operation, such as attaching chains to pallets and dragging
them from the front of trucks to tailgate in order to unload them.  The
proposed operation should reduce the work force by a minimum of one
employee.
Further, it is proposed to relocate the checkers* office from its present
location to the present hospital room area, so that they will be closer
to the operations and could observe both the warehouse and dock operations.
Finally, all dead storage such as stored handling equipment and salvage
should be removed from the active part of the facility and placed at the
extreme /.back}, end of the main warehouse on pallet racks that are presently
in the west side warehouse. Pallet rack spacing should be set up to accommodate the 1200 mm x 1000 mm pallet size now in final stages of acceptance
as the predominant C.S.A. Standard. -3-
Appendix 3 shows a rough drawing of the proposed relocation of the
Vancouver operation.
In order to avoid tying up expensive trailer equipment while L.T.L.
20-foot containers are being direct loaded for Zones in Kitimat, Terrace,
and Prince Rupert, these containers could be lifted onto less expensive
($400) stillages parked alongside the loading platfoi-m by the large fork
truck.  Position of the stillages are shown in Appendix III. LONG-TERM LEASING VERSUS SHORT-TERM LEASING
Records show that during the first six months of 1978 C.P.-Northland saved $33,000 over a like period in 1977 by switching from short-
term trailer leasing to long-term (30-month) trailer leasing.  Forecasts indicate that greater savings during the next six months are
possible because a greater number of long-term leases have been recently
arranged.  Also because a trailer and container system control board
has.'.been instituted that should speed up the turn around of containers,
thereby reducing the number of leased trailers and containers in the
system. ■
Trailer Leasing
Records show we have about 40 trailers on rental from Caravan,
3-2 from T.I.P. and 1 or 2 from Gilflex.  We find that these trailers
when empty are delayed up to two weeks at Kitimat waiting for barge
space due to scale Southbound unitized cargoes of aluminum ingots, pulp
board and canned fish.  It is our intention to reduce the number of
trailer rentals by investigation possibilities of loading these empty
trailers with ingots, pulp board and canned fish.  Also we are proposing
a more rigid trailer and container control system.  Further, lower
rental rates have been obtained from the above rental companies by
using C.P. Rail's National Account.
The net result from the best combinations should lower our trailer •
rental costs by about $75,000 annually. Trailer leasing (3 years) versus installment purchase (3 years)
CP Rail-Northland Service, since its takeover from Northland Navigation
at the beginning of 1978, has made substantial reduction in negotiated
trailer leases by National account and longer term arrangements with
Caravan Trailers Leasing, with Commercial Trailer Leasing, and through
CP Transport.
We nox? find that further savings can be made by negotiation with Fruehauf
Trailers Corporation and Trailmobile for 3-year installment purchase and
66% residual on new trailer production.
For example.
Northland CP.Northland CP.Northland Trailer Mfg.  Annual    Annual
Cost     Short-Term    Long-Term   Installment Equiva-   Equiva-
1977       Lease    3 Year Lease  Purchase 3yr lentLease lent Pur-
Cost
1485
chase cost
1480
Difference
40' flats
275.00
270.00
160.00
265.00
~ 5 .
45' flats
275.00
270.00
175.00
275.00
1774
1613
-3 61
26' flats
275.00
210.00
150.00
191.00
1290
J009
-283
40-45'
dry van
363.00
277.50
175.00
165.00
345.00
1774
1924
•1-350
26'dry '
van
275.00
210.00
150.00
230.00
1290
3 231
- 60
Converter
dollies
150.00
150.00
75.00
—
645
544
-103
20'Con
tainer
Chassis
275.00
270.00
150.00
191.00
1290
3060
-130
The advantages of purchase over long-term lease with interest on investment-
included are substantial with the exception of 45-foot trailers, which
because of difference in age, are more costly.
i .
Appendix VIr shows Trailer Manufacturer's Specification and prices effective May-June 1978. PROPOSED ACQUISITION OF 6 ADDITIONAL-26-FOOT REEFER TRAILERS AND
RETIREMENT OF NORTHLAND'S 2400 & 2402 (15 YEARS OLD) 24-FOOT REEFERS
Initially it was proposed that we obtain 20-20' Nitrogen refrigerant
I.S.O. containers in order to develop the Prince llupert fish* back haul
traffic and attempt to balance our equipment.  Several factors have
caused us to change our thinking and reduce our requirements to 7-26
foot reefer trailers.  Capital, freight rates, and guaranteed usage.
However, we are confident that this request will fill our minimum requirements because Mr. N. Woods has had discussions with Kraft Cheese
who show interest in this type of equipment,
Mr. W. Shaver has had discussions with Mr, Ian Dunbar of B.C.
Packers, who states they would use equipment for domestic Southbound
fish movements.
Finally, Mr. Bill Hickman's direct delivery suggestion, not fully
implemented, called for one 26-foot refrigerated trailer to 3iandle
direct delivery perishable traffic in conjunction witli the present: 26-
foot direct delivery dry van trailers for Terrace and Prince Rupert.
The implementation of this feature and putting perisliable traffic on
a door-to-door basis would eliminate several..man handlings at .Vancouver
and Kitimat and eliminate need for P. Boxes.
The advantages of 26-foot reefer trailers in combination (one
single axle lead and on tandem axle rear) is that you can haul more
fish (a dense product), 65,000 lbs versus 43,000 lbs In a 45-foot reefer
trailer.
It is suggested that six additional second-hand reefer trailers
(four single axle and two tandem axle) be purchased from Fruehauf.
These trailers should be equipped with diesel electric refrigeration
(two units could be transferred from 2400 and 2402) and the rest purchased second-hand from Highway-Refrigeration Company who has one unit
at present, or others.  Mr. T. King advises that the present diesel
electric units in 2400 and 2402 should be completely overhauled if
transferred to newer equipment. Appendix V shows Pruehauf's present
inventory and prices of near-new reefers. Container Chassis
The proposed 15-20' container chassis should be used for handling
20-foot containers in Vancouver, 20-foot containers too heavily loaded
for present fork truck capacities, local delivery in Kitimat and local
delivery in Prince Rupert, in connection with a direct barge service.
26-28' A & B Train Flats
The proposed 16 A train flats and 4 B train flats should be assigned to the Kitimat, Terrace, Prince Rupert highway operation.  Mr.
Don Murray is of the opinion that because of greater operational difficulties with A trains versus B trains that greater emphasis sliould
be given to B trains.  The proposed B train's lead unit 26 feet and
rear unit 28 feet (see Appendix^ VII) - will permit carriage of'20-foot'containers plus space for machinery,construction material, glass racks,
and other awkward cargo.  They will also have the flexibility of carrying maximum loads (90,000 lbs versus 50,000 lbs on 45-foot flats) of
lumber, pipe, structural steel or concrete blocks and beams.
Further, the proposed B trains are intended to eliminate tlie requirement for long-term leasing 40-45 foot"flat trailers.  Again for
this conversion to succeed, C.P.-Northland representatives must sell
this concept to trailer-load shippers. MECHANICAL AIDS AND THEIR POTENTIAL
IN C.P. RAIL COASTAL MARINE
SERVICES (NORTHLAND)
mafi roll pallet flats
There are twelve (12) Mafi roll pallet flats in the present inventory,
observations reveal that they are frequently idle at Vancouver and
Kitimat with the majority left at the latter point.  This can be attributed to non-recognition of their cost saving potential, and improper
assignment and control of this equipment.
As an example, loose northbound Alcan traffic is invariably picked up
off the Kitimat dock and is loaded into pallet flats for transfer to
Alcan receiving facilities.  As an alternative, it is suggested that
we use morel-Mafi roll .pallet flats for the through movement from Vancouver
docks to Alcan facilities in Kitimat.  This could be accomplished by
assigning an average of three Mafi roll pallet flats to each sailing.
The proposed cycle would be inbound at Vancouver and Kitimat Monday and
Thursday,outbound Friday and Tuesday.  During the poi-t stopover, tliree
days, this equipment could be used to reduce the number of individual
unit load stem movements from the front of tlie Vancouver property to the
rear shed and vice versa on sailing days.
By cycling 3 loaded Mafi roll pallet flats on eacli liarge sailing at least
a 50% increase in the present Mafi pallet utilization would occur.
The result could be a reduction of 30 individual unit load handling at
least four times.  With an average cycle time of ten (10) minutes per
unit load into and out of the barge.  Savings of 600 minutes or $100.00
per week could occur at Vancouver with two sailings a week.
We have now on order with C.E.T.C. three additional Mafi roll pallet
flats plus one recently acquired. '..This will enable us to increase the
Mafi cycling from 3 to 4 per sailing.
Another suggestion for reducing fork truck stem time could occur when
barges are partially unloaded at Vancouver and Kitimat and when outbound
cargos are available.  An inbound cargo discliarge and an outbound cargo
loading could be handled by the same fork truck cycle similar to the
procedure used on handling cargo in container vessels.  A loaded movement in both directions of the fork truck stem movement would reduce
the overall loading and unloading time of barges at Vancouver and Kitimat. TRAILER AND CONTAINER CONTROL AND IDENTIFICATION
We have prepared a Standard Procedures Manual for trailer and
container control and identification for circulation to C.P.-Northland key operating personnel.  The proposed identification system
Appendix VII based on I.S.O. recommendations plus color code for
instant visual identification and is employed by both C.P. Rail
Intermodal Services and C.P. Ships.  If this system is employed by
C.P.-Northland Services, then the Alpha ciP.N.V-' and .C.P.N. Z. should",
be registered with the American Bureau of Shipping as a unique owner's
code and provide protection against possible loss through theft, etc.
The proposed board will show the number of owned or leased e-
quipment in the system by type, size, and disposition.  Vancouver
will determine its biweekly requirements at least one day ahead of
time and will advise Kitimat the priority for empty Southbound movements with emphasis given to getting leased equipment back quickly
so that surplus can be taken off lease.
It is visualized that the container and trailer control Ijoard
will show the approximate number of containers, and trailers by type
that will be required for the next sailing.
VANCOUVER
KITIMAT
Southbound
Empties
• Bad Or
North
Loads to
Empties
Bad Or
Loads &
Awaiting
ders out
bound
be 3)eli-
Awaiting
ders Out
Empties in
Instruc
of Ser
Loads
vered
Instruc
of Ser
Transit
tions
vice
Barge 1
Barge 2
tions
vice
The Cardex card could be color coded to indicate type of equipment (beige for van, etc.).  These cards would be lined to permit recording days under load and movement and days empty waiting loads, so
that when summarized statistics could be developed showing utilization
factors and costs.
Postings must be ma'de biweekly and revisions communicated by telex
between Vancouver and Kitimat, with Vancouver advising priorities on
all Southbound movements. Fork Trucks Vancouver
We have observed the reduced fork truck inventory at work in
Vancouver since May 1st and the present allotment appears to be adequate.
#36 - 5,000
lbs
1970
Clark open
triple mast
#38 - 6,000
lbs
1972
ti     it
low mast
#58 - 5,000
lbs
1969
ii     ii
it   tt
# 4 - 8,000
lbs
1974
ti     ii
regular mast
#57 - 8,000
lbs
1974
ii     ii
it     ti
#380 - 15,000
lbs
1977
Taylor "
it     it
# A - 12,000
lbs
1978
ii     it
it     u
#104 - 25,000
lbs
1969
Clark "
it     it
#103 - 30,000
lbs
plus
1958 Clark
open regular
long forks
**
#4 fork truck is continually down for maintenance, it and #5-7'
should be traded in for another 12,000 lb Taylor fork truck at
earliest convenience.
Substitute fork truck presently used until arrival of 12,000 lbs
from factory.
Occasionally we rent another high mast fork truck to work in conjunction with #36 fork truck for loading and unloading Lake3.se
barge loads of cans and fish at Prince Rupert.
Northland Trailer Rentals
I.   In order to increase the mobility of 30,000 lb plus fork
truck #103 fork side shift cylinders have been added.  This feature
should reduce the possibility of fork damage as quick adjustments
will'be possible when entering container fork pockets.
— Fork Trucks Kitimat
The fork truck situation at Kitimat appears to be satisfactory
except that Mr. D. Murray has requested either another 6,000 lb low
mast fork truck to load trailers or a portable loading ramp to permit
the K5 the 4,000 lbs low mast fork truck to load and unload trailers
from ground level.
It is recommended that a Cooperly magnesium portable ramp, which
is much cheaper ($8,000) than a 6,000 lbs fork truck, be acquired
to solve this problem.
Present fork truck allotment
K5  - 4,000 lbs 1960 Clark Cab low mast
K2  - 8,000 lbs 1972  "  Cab (Kemano) regular mast
#20 - 8,000 lbs 1973  "   " " "
#5  -10,000 lbs 1974  "   "        •• " "
#581 - 15,000 lbs 1977 Taylor Cab " "
# A - 12,000 lbs 1978  "   " " " *
#K100 25,000 lbs 1969 Clark Cab
#K102 25,000 lbs 1972 Clark Cab " "
*A substitute fork truck presently used until arrival of 12,000 lbs
from factory.
It is suggested that K100 and K102 - 25,000 lb fork trucks with
capacity at 48-inch load centres be traded in for a Taylor Y 300 with
extra counter balance, to match lifting 30,000 lbs plus capacity of
Vancouver's #103,. now equipped with long forks.  This would permit
lifting of heavier (25,000 lbs) 20-foot containers of general merchandise (about twice the capacity of present K100 and 102) .  A further
advantage would be to permit more stacking of 20-foot containers on
the deck of barges and reducing tbe number of container chassis used
between Vancouver and Kitimat.
Further, it is suggested that when the reduction or elimination
of rehandling of loose freight at Kitimat is achieved, that two of the
three K2, #5,
truck.
and #20 be traded in for one new 12,000 lb Taylor fork Prince Rupert
With the dramatic reduction in the use of 12 and 13-foot containers,
the present economic justification for keeping #101 fork truck (25,000
lb capacity) at Prince Rupert is questionable.  Efforts should be made
to have either Skeena Heavy Lift Co. or Casco in Prince Rupert contract
to perform heavy lifts on our behalf.
Finally, when ramps and barge decks can support fully loaded 20-
foot containers and covered barge clearances are improved, it is
recommended that all 25,000 lbs lifting equipment be replaced by the
acquisition of 52,500 lb Taylor RoRo-type fork trucks or Steadman Side
Swing transfer chassis. PREVENTIVE MAINTENANCE PROGRAMS
PORK TRUCKS
In order to obtain dependable service from our fork trucks it is essential to
obtain fork trucks that have a proven record and dependable service in rugged
industrial use.
For this reason, we favour the Taylor fork truck with automatic transmission
and side shift. However, wo machine will provide satisfactory service unless '
periodic preventive maintenance, daily inspections, servicing and lubrication
are included. Further, it is also necessary for the maintenance people to be
fully aware of the functional operation of each control, indicator, switches
and components.
• ■
The name of the game is to maximize availability-of the machine for operational
purposes and extend the longtivity of the machine,  thereby minimizing the cost of
fork truck operation.
It is suggested the C.P. Rail Northland Operations Department have control over
the use of Vancouver fork, trucks.    It would be their responsibility to advise
the Maintenance Department when they can release a fork truck for maintenance.
Major work should bs scheduled for Wednesdays and Thursdays   (quiet days for. dock
operation) with preventive maintenance checks scheduled for Monday.    All fork
trucks should be in proper working order and available 'for Operations Department
use for Tuesday and Friday sailing days.        . '     - .
A mobile equipment log book for fork trucks should be maintained to include:
r- Operator's daily inspection and service record for each fork truck.
— Monthly'record of mechanical repairs for each fork truck
■*- A general information log on unit hours - o .   -
— Annual availability summary showing % of availability .   "
Fork truck major maintenance should be carefully appraised before work is undertaken
to determine all economic factors ie. the age of the machine,   it's present suitability
for the present working requirements and whether it should be traded in.for a more
suitable unit.    Fork truck rentals should only be considered for spot movements or
peak traffic requirements of a short duration..    It will be the Operations Department* s
responsibility to return all rentals to' suppliers at their earliest convenience to
avoid unnecessary expenses* ••'■'•".
- m. . .... ~   m^..f .........   .f .   •
Fork truck preventive maintenance by an outside fork truck service shop should be
considered when the number of trucks are reduced to a point where we cannot justify
our own maintenance facility. See Appendix-jxy, sheets 1 to 3. "" . - - PRESENT BARGE LIMITATIONS
There is no easy solution vrtien one wants to introduce economy of scale into
Northland's operations. According to B.C.C.S. Engineering Department the
present covered barges, Transporter, #L01 and the lakelse are not constructed '
sturdy enough to support a 52,000 lb. fork truck (75,000 lbs.) and a.maximum
allowable fully loaded container (45,000 lbs.). This feature also applies
to the Vancouver and Kitimat loading ramps. Further, to make the barge
operations economically viable maximization of cube is essential. Certainly '
ro-ro trailers at present rate levels are not economical in existing barges
but 20» containers stacked two high have possibilities.. Here again data in
Appendix V shows the present covered barges are restrictive. The heights
of the Transporter (l? foot) just permits two high stacking of 20' x  8' x. 8(
containers while the Northland 101 and Lakelse 15' and 13' respectively do
not.
Another bad feature of these two barges is the narrow rear door widths.. The
Northland 101 and the Lakelse are 15 feet. It Is proposed for the interim that
v/e acquire 20' van type containers and 20» half height containers for rough
freight (C.P. Ships have surplus half height containers at about. $600.00 book
value). This would enable us to stack a 20* -van container and a 20'half
height container in the existing barges. Further consideration should be gven
to acquiring sturdy open barges at least ^  feet wide to permit double stacking
of 20* x 8.5' x 8* van type containers. lb get around the weight problem on
ramps and barges there are two known alternatives. Spread the weight of the. loads
on the ramps and barges, heavily loaded containers could be moved on to barges by
30 ton roll type Mafi pallet flats or by Steadman swing lift. These heavily
loaded containers could be removed from the mafi flats or unloaded by swing lift
on the open barges providing feet of space was left in the centre of the barge
to permit a Steadman type swing lift machine to operate.  This centre section
would be filled later by loading highway trailers in this area. The reverse
procedure would have to be arranged at the other end of the water movement.
There are certain inherent advantages in using the Steadman swing lift, because
it's capital cost is about half of that of a 52,500 lb- fork truck. It has a high T
V
reliability factor, it will spread the loads sufficiently to get round major
expenditures for beefing up ramps and barges; while slower, it can do everything that a front fork truck loader can do on the dock and more, because if
it is licensed, it can deliver 20' foot containers locally and set them at a   -   -
shippers premises. -
This equipment has had a proven record at C.P. Rail Piggyback Sendees t medium
size facilities such as Edmonton and Calgary where the traffic volumes did not
justify the double expense of a heavy duty fork truck.    The swing lift has
another advantage, on deep sea electric  reefer containers it permits you to
leave the chassis behind because when top lifting, it will not damage containers
without fork jackets.    Appendix ZX   shows specifications of this equipment. EXISTING RAMPS AND THEIR PROBLEMS
Kitimat
J
The existing ramp at Kitimat is 20,000 lbs under capacity to handle a
Taylor 52,500 capacity fork truck with 60-inch centre forks (drive axle
loaded 62,000 lbs + 45,000 lbs container load) (steering axle 13,000 lbs,-).
Also the width of the ramp should be increased to about 20 feet to permit
two large fork trucks or Ottawa and large fork truck to pass each other.
.'Further, the length of the ramp should .be increased to reduce the present
'steep incline particularly hazardous during winter .when heavy snow and
:-iCe conditions are encountered. -. ;-
te;V       . :y.-...,   ''.'•.;  . •'. .. "   ..      .    "te "   -.'.'"••;'"'
.vAnother feature to be considered would be to remove the wooden deck and '
replace it with bridge grid that would permit snow to pass through and ,
■ eliminate most of winter hazard. tete-...,      J-.-
Vancouver        .-•  .- •'- .
The existing ramp'at Vancouver is about 30,000 lbs under capacity and
is too narrow.     A minimum of 20 feet is necessary   (24'   would be ideal^.
The bottom hinged plate should be replaced with a  larger unit  to reduce  the present bad hump at various tide conditions which is jarring
mechanical" equipment  and could be responsible for higher maintenance
cost. LOADING BARGES BY PRE-PLANNING AND PRIORITY SEQUENCE
We find that due to a lack of communication between Vancouver
and Kitimat, confusion occurs practically on every barge arrival at
Kitimat because rush trailers are either loaded by Vancouver on two
barges or are not all reported.  This causes delays in getting these
trailers to destination either by having drivers on duty waiting unloading of rush trailers from second barge or not calling enough
drivers out early to cover the unreported rush.trailers.
To rectify this problem and to insure that rush trailers are
loaded in a position for easy accessibility on the barge, Messrs.
Murray and Hickman have pencilled in on the proposed barge loading
plan the preferred position for each rush trailer.  See Appendix.xi,
Further, because we have been sustaining a lot of side wall, light,
and reflector damage on our trailers, a survey was undertaken to solve
this problem.  It was found that the width dimensions of our present
barges were more compatible for loading 8-foot, wide trailers with 6-
inch clearance spacing between each trailer than loading a mixture of
8-foot and 8-foot 6-inch widths or trying to load all 8-foot 6-inch
wide trailers in the same row across the barge.
Further, it was found that beer traffic, when loaded in 45-foot
102-inch trailers, did not occupy the full floor space, and the voids
had to be blocked.  We have now arranged to have the beer loaded in
40-foot 96-inch trailers.  The better fit does away with blocking.
If this discovery holds true for other trailer load traffic, we could
end up with loading more trailers, with less damage on our barges.  It
is suggested that each shipper be canvassed towards this end.  If by
replacing 30-45' trailers a month with 30-40' trailers, a 150 feet of
barge deck would be saved, equivalent to 5-20' or 26' units or possible
increased barge revenue of $600 for each additional 20' or 26* unit
handled.  Similarly, the width reduction from 102 inches to 96 inches
would permit increase loading from 5 wide (102") to six wide (96")
trailers in the same row on barges with 51 inches interior width or
wider. (Transporter, Empire 40, and Northland 101)  It is estimated
that a minimum of four extra 26' trailers a month could be loaded, or
nine per month total at $600 each extra revenue -  $65,000 annually). -2-
It is suggested that when preplanning the loading of barges that
these factors should be taken into consideration.  Because, any increase
of trailers or containers on the barges, could either allow more loose
freight on the deck to be containerized, or in-off season eliminate,
the need for the operation of a second barge, or delay the need for
supplying extra barges should traffic expand to a point where we cannot
handle same with our present barges.
We have estimated that the extra annual revenue from reduced trailer
widths would amount to about $29,000. \ PROPOSED LATER DEPARTURE FRCM VANCOUVER AND SPLIT BARGE OPERATIONS
At the present time 60 per cent of the Stevedore operation at Kitimat is
performed at double time,  8 per cent at time-and-a-half and 32 per cent
at regular time.
Rescheduling the Vancouver-Kitimat barge operation for departure at
21:00 hours vail increase the Vancouver costs by approximately $10,000
(5 men at time-and-a-half for 4 hours,  100 sailings)..    However if the
Kitimat-Prince Rupert operation were separate ports,  it would not be
necessary to start unloading before 7*00 A.M. at either port.    Therefore the 60 per cent double time could be eliminated,   first because
split barge operations with economy of scale containers would reduce
port handling times and secondly a split barge operation should permit
unloading and loading within 8 to 10 hours (7:00 hours to 17:00 hours) .
The overtime saved would amount to($305,500 divided by 60 per cent/=
$185,700.    To be conservative, we could assume that the Transporter
might be delayed beyond the normal work day when discharging cement,
therefore Stevedores could \-jork fOr about A- hours at time-and-a-half
(say $10,000 annually).    The overall savings therefore should be about
$175,000 less $10,000 additional at Vancouver or $165,000.   Minus $100,000
for Prince Rupert wages.     See Appendix XII. r
BARGE IN TRANSIT TIKES /       ■
NORTHBOUND AND POSSIBLE ALTERNATIVES
Daring 1977 Northland Navigation operated the Ocean Prince northbound with
about 8 single barge tows averaging $U hours and i|2 tandem barge tows averaging
60.5 hours.    Kore than \tf3> of the Vancouver departures were in excess of one
hour.    In fact 2Q£ were more than two hours late.    In other words, with on-time
departures tandem tows could be performed within 60 hours.     Tide delays   also
were recorded on 1QS of the voyages.
During the same period the tug Northland Fury went northbound with about 21
single barge tows averaging 2j6 hours and about 28 tandem barge tows averaging
$2.$ hours.    Only 1Q£ of the Vancouver departures were more than an hour late.
In other words, with on-time departures  tandem tows could be performed within
52 hours.    ^e "Island Commander' now takes about 45 hours  for a tandem tow.
tf m
As you are aware,  Tuesday sailings are "far lighter than those on Friday and in
order to improve the mid-week service and try to shift some of the Friday cargo
to Tuesday's sailing the following should be considered.
Tuesday pick-up cutoffs to be set back fron noon Tuesday to 1600 hours,     long-
•shore crews to* be split with four men reporting for duty at O300 to 1700 hours
and four men reporting for duty at 1300 to 2100 hours.     Set back Fury's I
schedule to 2100 hours with ETA Kitimat 2100 hours single  and 0200 'hours tandem
tow. . „■'•'--*
. While it is desirable to set back the Ocean Prince's schedule to 2100 hours also,
the ETA Kitimat of 0900 hours tandem-would be too late.  However, if a larger
barge single tow was arranged the Kitimat ETA would also be about 0200 hours
which we could live with- This proposal is also feasible with the faster "island Commandd
The overall financial effect of this proposal would be less "tandem^operations
on Fridays and less double -time_ for unloading the barges at Kitimat.
"Study shows that about half of the 20 tandem barge operations Northbound on
Tuesday and Southbound on Friday are questionable because of the combined _
tonnages handled. . Similiarly about a quarter of the W  tandem barge operations .
Northbound on Friday are questionable for the same reason. Further in many.  _
instances tonnages in excess of a single barge capacity were minimal, some
tandem operations were operated to provide extra capacity Southbound to reduce
empty equipment inventory at Kitimat. • . - I
. It is suggested that consideration be given to contract trucking overflow rush
loads, from Vancouver if only 1 or 2 rush trailers cannot be handled on a   '
single barge rather than chartering and operating the second barge. •
To avoid sending a second barge to bring empties Southbound measures should
be undertaken to try and handle Aluminum, paper and canned fish m empty
Southbound trailers. Another idea that will be studied is the feasibility
and availability of collapsible 20 foot bulkhead side rack containers.
 ----. n Reduced time and motion in barge loading operations by introducing economies  of scale.
Observations recorded and traffic analysis indicate that by consolidation of
piece meal traffic and increasing unit load sizes it is'possible to reduce
' the number of lifts and moves Northbound by 60g» and those southbound by 60f0.
first a three (3) to one(l) reduction in handling is visualized in substitution '
Of 12'  and 13*   containers for 20*  containers.    Loose items such as drums,   bagged
.material, units of brick, wood sticks, cement blocks and numerous assorted units of
say 1 ton each could be reduced between fifteen (15) and twenty (20) to one  (l)
if loaded in either 20r -vaoci or open top containers and/or 20 or 30 Mafi roll
pallet flats.     Appendix XIII shows possible  saving. SKEENA MOTOR CARRIERS EQUIPMENT
We are now operating with eight Ryder leased and/or rented tractors and one owned 1971 Keniworth 350 hp tractor #108, one owned 197],
Keniworth truck #1805 with a Hyab crane and 20-foot flat deck, and
one owned Ottawa shunter #107 with elevated fifth wheel for loading
and unloading barges.  Of the eight Ryder tractors, three are tandem
axle City tractors on long-term lease, three are White Freightliner
highway tractors substitutes for two new International 350 hp tractors
spcified for this area with radial tubeless tires awaiting delivery
from factory on long-term lease.  The third replacement should be an
additional Ottawa-type shunter that will assist present Ottawa shunter
with long stem times during barge days, thereby reducing turn around
time of barge by about four hours and on other clays will operate be-r
tween dock and Eurocan and Alcan.
Observations disclose that the present Ottawa tractor's average
cycle time unloading the barge is 10 minutes and loading the barge
7% minutes.  With the second unit these times could be reduced to
about 7^ minutes and 5 minutes respectively or tf hours on a Monday
and lh  hours on a Friday.
With an average of nine men employed during this operation, the
weekly savings should amount to about $1000 if vacation pay and allowance, etc. are included.  Therefore, 50 weeks x$1000 should result in
approximately $50,000 annual saving.  Further, a second Ottawa tractor
would provide back-up should a breakdo\m occur with present Ottawa.
The last two Ryder 350 hp tractors are on rental and would be
returned to lessor in event that the Vancouver-Prince Rupert direct
barge service is instituted.  However, if the Prince Rupert direct
service does not become a reality, then immediate arrangements should
be made to substitute a long-term lease for the present rental arrangement.  Further, it is proposed that one long-term leased City tractor
and one long-term leased highway tractor should be transferred to Prince
Rupert to replace Lindsay's Cartage when the Vancouver-Prince Rupert
direct service is started.  The long-term leased tractors are on a
full maintenance program with our Mechanic's salary shared with Ryder
on work load and all parts are supplied by Ryder.  Included is a service
vehicle for handling highway breakdowns.

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