PORT METRO VANCOUVER | 2015/16 INTERMODAL INTEGRATED WINTER PLAN Vancouver Gateway Intermodal Integrated Winter Plan Winter 2015/2016 PORT METRO VANCOUVER | 2015/16 INTERMODAL INTEGRATED WINTER PLAN Introduction The 2015/16 Vancouver Gateway Intermodal Integrated Winter Plan is designed to focus attention on key aspects of Vancouver Gateway intermodal supply chain performance to help ensure service reliability through the winter months. These areas include, but are not limited to: winter preparedness planning; planned events (such as holiday closures); unplanned events (such as rail service and terminal disruptions); planned communications; and escalation processes in the event of disruptions. Winter Preparedness Planning Both CP Rail and CN Rail have extensive winter plans in place to address the impact of winter weather conditions across their networks including: CN Implementation of Winter Train Length guidelines for temperatures below -25C; Store of serviceable ready units positioned at key outlying terminals; Reserve of railcars at strategic non snow belt locations across the network to ensure consistent car supply; Pre/Post Christmas car supply plan in place. CP Proactive monitoring of weather and train length reductions to reduce issues over the road; Locomotive and crew resources available to supply demand as well as contingency requirements; Snow removal equipment in place at high risk locations; Approximately two days of safety stock stored within less than a day transit of Vancouver. Safety stock reviewed daily; Significant capital investment in 2015 to improve ability to recover from outages. Winter 2015/2016 Page | 2 of 7 PORT METRO VANCOUVER | 2015/16 INTERMODAL INTEGRATED WINTER PLAN Gateway Container Terminal Holiday Work Schedule December January 22 23 24 25 26 27 28 29 30 31 01 02 Centerm Normal Hours Normal Hours Open 07:3012:00 Closed Work from 01:00 Normal Hours Normal Hours Normal Hours Open 07:3012:00 Closed Work from 01:00 Normal Hours Deltaport Normal Hours Normal Hours Open 08:00 -12:00 Closed Work from 01:00 Normal Hours Normal Hours Normal Hours Open 08:00 -12:00 Closed Work from 01:00 Normal Hours Fraser Surrey Normal Hours Normal Hours Open 08:00 -12:00 Closed Work from 01:00 Normal Hours Normal Hours Normal Hours Open 07:3012:00 Closed Work from 01:00 Normal Hours Vanterm Normal Hours Normal Hours Open 08:00 -12:00 Closed Work from 01:00 Normal Hours Normal Hours Normal Hours Open 07:3012:00 Closed Work from 01:00 Normal Hours CP Rail Normal Hours Normal Hours Down from 00:01 to 12:00 Normal Hours Normal Hours Normal Hours Normal Hours Normal Hours Normal Hours Normal Hours Normal Hours CN Rail Normal Hours Normal Hours Reduced service 12/24 18:00 12/25 12:00 Normal Hours Normal Hours Normal Hours Normal Hours Normal Hours Normal Hours Normal Hours Normal Hours Terminal Railways Winter 2015/2016 Page | 3 of 7 PORT METRO VANCOUVER | 2015/16 INTERMODAL INTEGRATED WINTER PLAN Gateway 2015/16 Holiday Work Schedule – Container Terminal Truck Gates Centerm Vanterm Deltaport FSD Monday, December 21 08:00 – 00:00 08:00 – 15:59 17:00 – 23:59 08:00 – 15:59 17:00 – 23:59 08:00 – 16:00 Tuesday, December 22 08:00 – 00:00 08:00 – 15:59 17:00 – 23:59 08:00 – 15:59 17:00 – 23:59 08:00 – 16:00 Wednesday, December 23 08:00 – 00:00 08:00 – 15:59 17:00 – 23:59 08:00 – 15:59 17:00 – 23:59 08:00 – 16:00 Thursday, December 24 08:00 – 00:00 08:00 – 10:59 08:00 – 10:59 08:00 – 12:00 Friday, December 25 Closed Closed Closed Closed Saturday, December 26 Closed Closed Closed Closed Sunday, December 27 (1) Closed Closed 08:00 – 15:59 17:00 – 23:59 Closed Monday, December 28 Closed 08:00 – 15:59 17:00 – 23:59 08:00 – 15:59 17:00 – 23:59 08:00 – 16:00 Tuesday, December 29 08:00 – 00:00 08:00 – 15:59 17:00 – 23:59 08:00 – 15:59 17:00 – 23:59 08:00 – 16:00 Wednesday, December 30 08:00 – 00:00 08:00 – 15:59 17:00 – 23:59 08:00 – 15:59 17:00 – 23:59 08:00 – 16:00 Thursday, December 31 07:30 – 12:00 08:00 – 10:59 08:00 – 10:59 08:00 – 12:00 Friday, January 1 Closed Closed Closed Closed Saturday, January 2 Closed 08:00 – 15:59 17:00 – 23:59 08:00 – 15:59 17:00 – 23:59 Closed Sunday, January 3 (1) Closed Closed 08:00 – 15:59 17:00 – 23:59 Closed 08:00 – 00:00 08:00 – 15:59 17:00 – 23:59 08:00 – 15:59 17:00 – 23:59 08:00 – 16:00 Monday, January 4 (1) Exports and Empties only Winter 2015/2016 Page | 4 of 7 PORT METRO VANCOUVER | 2015/16 INTERMODAL INTEGRATED WINTER PLAN Planning for Holiday Closures Container terminal operators and both Class 1 railways will work in collaboration to draw down import intermodal on-dock footage to agreed-upon targets leading into each holiday shutdown. o Draw-down based on short term (7-14 days) forecasting information and latest view vessel ETAs provided by the shipping lines; o Rail car supply to increase as needed 7-14 days prior to shut down. Prior to the December 24th shutdown, each container terminal will have an operating plan in place to ensure an adequate supply of railcars on-hand coming out of the holiday shutdowns. Ample labour supply is expected to be available over the holiday period. Additional emphasis will be placed on the repair of bad order railcars and pre-inspections by railways during terminal shut down to ensure car supply for re-start of operations. Terminals have established on-dock import rail footage minimum/maximum targets leading in to the December 24th and December 31th shutdowns. o Each terminal is targeting one day or less of rail production on-dock leading into the Christmas and New Year shutdown; o Vessel on-time arrivals plus terminal and railway operating conditions during the draw-down period will play a significant factor in achieving the agreed upon on-dock footage targets; o The draw down will allow for the normal resumption of terminal operations on December 26, 2015 and January 2, 2016. Recovery from Unplanned Disruptions A variety of unplanned disruptions can impact intermodal service reliability during the winter season, including: o Rail service disruptions including extended periods of severe winter conditions outside the Vancouver Gateway; o Late vessel arrivals and “bunching” of arrivals; o Marine terminal disruptions (weather/equipment/labour). To minimize the impact of these unplanned short term disruptions, both CP and CN have committed to hold a “safety stock” of empty railcars at storage locations within the Vancouver Gateway. o Both railways have safety stocks in place equal to approximately two days of productions within easy access of the Vancouver Gateway to help mitigate any short term service disruptions; o Safety stock inventory is reviewed weekly to ensure adequate supply in the event of a disruption. Each marine container terminal currently has the capacity to ramp-up rail loading to off-set lost production due to disruptions. Winter 2015/2016 Page | 5 of 7 PORT METRO VANCOUVER | 2015/16 INTERMODAL INTEGRATED WINTER PLAN Both the railways and container terminals have detailed contingency plans in place to cover a variety of potential disruptions. Lines of Communication Scheduled Operations Communications Terminal/Railway operations: o Daily conference calls between container terminals and railways to review railcar requirements and vessel arrival performance. o Daily operating scorecards circulated to each rail carrier summarizing Import volumes, rail car supply, on-dock dwell and plan vs. actual performance. Short-term Forecasting PMV provides weekly import vessel volume forecasts to all terminal operators and railways to aid in operations planning. o Vessel forecasts provide a consolidated 14-day view of inbound container volume by vessel, destination and container size. Winter Performance Reporting To ensure that stakeholders are updated on key aspects of winter performance, PMV will make the following available through its website: o Holiday Shutdown Schedule; o Integrated Winter Plan; o Weekly updates on Rail and Truck performance are available at: http://www.portmetrovancouver.com/port-dashboard/supply-chain-performance/ Container terminals and railways will also continue to provide their customers with specific service information as required. Escalation Processes Each terminal and railway has existing escalation channels of communication which are triggered by operating conditions, as identified on daily operations scorecards that are widely circulated. PMV Operations monitors terminal fluidity on a daily basis to identify any potential issues that may arise. On-dock footages are widely reported on a daily basis within PMV. o Potential issues are reviewed with operating personnel from the container terminal and/or railway to confirm that an action plan is already determined and set in motion; o Should an issue not be resolved in a timely manner, PMV Operations will escalate the issue internally for senior PMV involvement with the container terminal and/or railway management for resolution. Winter 2015/2016 Page | 6 of 7 PORT METRO VANCOUVER | 2015/16 INTERMODAL INTEGRATED WINTER PLAN Summary The Integrated Winter Plan focuses on ensuring intermodal performance reliability through the winter months, and is developed based on input from all key operating entities within the Gateway. The Plan takes a proactive approach to dealing with holiday closures, ensures formal recovery and escalation processes are in place in the event of any disruptions, and improves visibility through short-term forecasting and daily monitoring through scorecards and reporting. Winter 2015/2016 Page | 7 of 7