Vancouver Port Struggles With Congestion Amid Calls for Rail Upgrades

The container congestion issue at the Port of Vancouver is severe. Canadian National Railway (CN) demonstrates strong transportation efficiency, while CPKC faces multiple challenges. Meanwhile, the container throughput at Prince Rupert and Halifax steadily increases, highlighting both the potential and areas for improvement in rail transport. Collaborative efforts across the industry are essential to address these challenges.
Vancouver Port Struggles With Congestion Amid Calls for Rail Upgrades

As global economic integration continues to accelerate, booming international trade has placed unprecedented logistical pressures on ports worldwide. Vancouver, Canada's busiest multimodal hub, has demonstrated remarkable resilience in this environment—yet faces mounting challenges with container dwell times that threaten supply chain fluidity.

The Dwell Time Dilemma

Recent port data reveals a persistent backlog at Vancouver's Deltaport terminal, where over 89,000 feet of containers have remained stationary for more than seven days. While this marks improvement from mid-March's peak of nearly 160,000 feet, the congestion continues to hamper operational efficiency. These stranded containers represent delayed shipments that ripple through global supply chains, potentially impacting international trade flows and economic activity.

A Tale of Two Rail Operators

The container backlog has exposed stark disparities between Canada's major rail providers. Canadian Pacific Kansas City (CPKC) has struggled significantly, with analysis from RailState showing a 9.5% year-over-year decline in container handling capacity despite increased train frequency. The railroad's failure to improve load utilization has exacerbated Vancouver's congestion challenges.

In contrast, Canadian National Railway (CN) has delivered standout performance through strategic capacity expansion. By deploying longer trains and increasing frequency, CN achieved an 11.4% surge in daily freight volume and a remarkable 25% increase in twenty-foot equivalent unit (TEU) movements—providing critical support for Vancouver's throughput demands.

Regional Success Stories

Other Canadian ports demonstrate what's possible through operational optimization. Prince Rupert in Quebec has become a bright spot, with 71.6% month-over-month growth in inland transport volume since February alongside a 7.4% increase in daily TEU transactions. Similarly, Halifax Port has maintained stable operations with 32.3% higher daily inland container volume compared to last year—achieved through improved load factors rather than simply longer trains.

The Road Ahead

Canada's transportation network faces complex challenges requiring industry-wide innovation. While Vancouver's congestion persists, the successes at Prince Rupert and Halifax prove that targeted improvements—whether in train configuration, scheduling, or terminal operations—can yield meaningful progress. The path forward demands coordinated action between ports, railroads, and policymakers to balance efficiency gains with growing trade volumes.

As global supply chains grow increasingly interconnected, Canada's ability to streamline its logistics infrastructure will prove crucial for maintaining competitive advantage. The current crisis presents not just challenges, but opportunities to build a more resilient and efficient freight network for the future.