02 Jan Halifax Terminal Operations Overwhelmed Amid Surge in Container Volumes and Adverse Conditions
Since October 2024, the Port of Halifax has faced a series of challenges that have disrupted terminal operations and extended dwell times for cargo:
Key Challenges:
- Increased Vessel Calls and Volume
A surge in vessel calls and container volumes since October has overwhelmed the terminal’s capacity, causing significant delays. - Digital Transition Challenges
The implementation of a new Control Center and Vehicle Mounted Terminals (VMTs) in September replaced the traditional pen-and-paper system. Terminal staff faced a steep learning curve, resulting in a 20–30% drop in rail productivity. - Equipment Maintenance Issues
Constant deployment of equipment to handle increased container volumes disrupted preventive maintenance schedules, leading to equipment shortages, further aggravated by a lack of skilled mechanics. - Labor Shortages
Chronic labor shortages, exacerbated by the holiday season, reduced workforce availability, hindering operations. - Adverse Weather
Severe snowstorms and strong winds in December led to a four-day terminal closure, worsening operational delays. - Rail Handling Limitations
Limited space at CN Rail’s offdock facility in Halifax created bottlenecks, despite adequate rail car supply. CMA CGM was unable to dray containers effectively to alleviate congestion.
Current Impact:
- Average dwell time: 10.7 days.
- Prolonged container dwell: 652 containers delayed over 17 days, some exceeding 31 days.
- Rail production capped at 300 containers/day against a backlog of 4,000 containers, requiring at least 14 working days to clear under current conditions.
Corrective Actions:
The terminal is implementing several measures, including:
- Prioritizing rail operations.
- Reallocating equipment and hiring additional mechanics.
- Negotiating specialized roles for terminal planners.
Despite these efforts, operations are not expected to normalize until mid-January 2025.