Atlantic Container Line vents frustration over Halterm

HALIFAX (March 24, 2003) — Frustrated with rail-related delays and rising costs at the Port of Halifax, Atlantic Container Line said Friday it will continue to route freight through U.S. ports until service improves.

“The looming prospects of cost escalations and rail service problems have significantly hurt Halifax during the past year and have forced ACL to divert over 10 per cent of its cargo to U.S. ports in order to maintain customers,” ACL said in a statement. “That trend will continue until the stakeholders of the port act to improve its cost competitiveness and its intermodal service quality.”

ACL also said it is switching terminals in Halifax from Halterm, in the
port’s south end, back to a terminal operated by Ceres in Fairview Cove starting April 10.

ACL represented approximately 25 per cent of Halterm’s total volume in 2002.

Earlier this month, Maersk/Sealand announced that it will discontinue its North Atlantic service on April 5. Combined, the moves “will have a major impact on Halterm’s earnings and cash flow,” Halterm said in a statement.