Border Lines

A roundup of North American news:

Canada's two largest railroads may be touting their success in improving efficiency and customer service, but one of Canada's largest shipper organizations begs to differ. During its annual meeting in Toronto, the Canadian Industrial Transportation Association/Association canadienne de transport industriel (CITA-ACTI) filed a formal application with the Canadian Transportation Agency asking CTA to investigate the way Canadian National Railway and Canadian Pacific Railway develop, issue and impose certain tariff rates. The shippers argue that the railroads do not have the legal authority to unilaterally impose rules and charges contained in the CN 9000 and CPR 6666 tariffs. Association president Lisa MacGillivray says that her group's members are facing increases totaling hundreds of thousands of dollars in unjustified "supplementary charges" added to their freight bills under those tariffs. MacGillivray also reports that members have been stonewalled in their efforts to discuss those charges with the railroads. The CTA is required to rule on the group's application before the end of July.

CITA-ACTI's Web site includes helpful information about provincial transportation agencies. The group's February newsletter, which is available online, lists updated names and contact information for all of Canada's provincial ministers of transportation. The item also includes links to the various transportation ministries' Web sites, which offer a wealth of information about local policies and projects. To read the newsletter, go to www.cita-acti.ca/newsletter/feb02-e.htm.

Mexico is losing some of its cost advantages when it comes to labor. Recent reports inBusinessWeek and Mexico City's English-language newspaperThe Newshave noted that because labor costs atmaquiladoras along the Mexico-United States border have been steadily rising, some of that business is shifting to Central America and China. Salaries in those locations typically are about one dollar less per hour than the average assembly-worker's salary in Northern Mexico, Economy Secretary Luis Ernesto Derbez toldThe News last month. A number ofmaquiladoras have been closed since September and thousands of employees have lost their jobs. Mexico's government hopes to offset those losses by attracting more high-tech business while re-emphasizing Mexico's proximity to U.S. and Canadian markets and improving road and rail connections with its neighbors to the north.

NAFTA Notes: Old Dominion Freight Lines, based in Thomasville, N.C., andTransportes Pitic of Hermosillo, Sonora, in Mexico, have formed a partnership to handle LTL shipments moving between the United States and Western Mexico. Transportes Pitic operates a fleet of 225 Qualcomm-equipped tractors and 500 air-ride trailers. Old Dominion continues to serve other parts of Mexico through existing partnerships with other Mexican motor carriers.Canada Maritime, part of theCP Ships group of companies, has been named "Carrier of the Year-Ocean Freight," "Best Ocean Carrier-European Trade Lane" and "Best Ocean Carrier-Mediterranean Trade Lane" by the Canadian International Freight Forwarders Association. This is the third consecutive year the carrier has received these three awards.