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February 24, 2020

Blockades in Canada Halt Rail Service

Protesters who oppose construction of a pipeline in British Columbia have brought passenger and freight trains to a standstill.

By  Sara Lavenduski

In what has threatened to become a national crisis for Canada, barricades built over railroad lines in protest of a natural gas pipeline project are prohibiting the flow of goods across the country, including promotional products. This morning, after almost three weeks of hindered rail service, the government has sent Ontario Provincial Police (OPP) to forcefully dismantle a blockade outside Toronto, after protesters didn’t heed a direct order to leave.

The Coastal GasLink Pipeline, a CA$6.6 billion ($5 billion US) project for transporting natural gas from Dawson Creek, British Columbia, through the Canadian Rockies to Kitimat, BC, where it’ll be prepared for export, became a source of protest and outcry over the past several weeks. The pipeline runs through unceded territory (still under First Nation jurisdiction and not the Canadian government) of First Nation peoples, though Coastal GasLink has worked closely with impacted communities — holding more than 100 meetings with First Nation representatives in the years leading up to the start of the project last year — and received official approval from elected councils to begin construction.

Canada railroad protest

Protesters block a railroad track in Toronto in solidarity with the Wetʼsuwetʼen community in British Columbia.

But late last year, the hereditary chiefs of the Wetʼsuwetʼen First Nation said they have a responsibility to protect their lands, and pipeline opponents, including members of First Nation communities and their Canadian supporters, began building barricades across rail lines in British Columbia in protest. On New Year’s Day, the Wetʼsuwetʼen sent Coastal GasLink an eviction notice claiming the company is trespassing on their land.

For a month, negotiations between First Nations representatives and provincial officials were planned and fell through as protests grew in Canada’s westernmost province. Royal Canadian Mounted Police (RCMP) entered Wetʼsuwetʼen territory in British Columbia on Feb. 6 to enforce the court injunction that would have allowed the pipeline project to continue. Opponents at barricades were arrested, which sparked a solidarity protest the same day on the other side of the country, outside Belleville, ON, about two hours east of Toronto, where protestors blocked railway lines on Tyendinaga Mohawk Territory. The next day, Via Rail was forced to cancel all passenger trains between Toronto, Ottawa and Montreal, one of the company’s busiest routes in the country.

Since then, protests have escalated. Canadian National (CN) Railway, which moves freight coast to coast and into the Southern U.S., was forced to stop service in Eastern Canada, and protests began at ports in Vancouver and Delta, BC.

For two weeks, protests expanded into Quebec and Manitoba, forcing CN to cancel services across the country. While blockades have come down in some areas, court injunctions in Ontario are being ignored. Meanwhile, Canadians are being warned of upcoming shortages of essentials such as groceries, propane and chlorine for water treatment. According to the Canadian Manufacturers and Exporters trade group, about CA$425 million ($340 million US) in goods is being stranded every day the crisis continues.

“Rail is the backbone of infrastructure in this country, critical for industry but also for inter-city movement of goods,” Brian Kingston, vice president of policy, international and fiscal issues at the business council of Canada, told Canada’s Financial Post. “This is not the kind of thing you can take a wait-and-see approach on for too long because this is potentially a catastrophe for the Canadian economy.”

For two weeks, Prime Minister Justin Trudeau called for peace, calm and a rational response, but the pressure is now on, particularly from Conservatives in Parliament, for a more forceful plan of action. “We know that people are facing shortages, they’re facing disruptions, they’re facing layoffs. That’s unacceptable,” he said in Parliament on Feb. 19. “That’s why we’re going to continue working extremely hard with everyone involved to resolve the situation as quickly as possible.”

The same day, Via Rail announced it would temporarily lay off 1,000 people as CN announced it would do the same for 450. While rail service has slowly resumed in certain areas, customers are being told to prepare for delays. Passengers have been forced to find alternative means of transport, and the movement of goods is being held up at ports on both coasts.

But numerous barricades remain standing in British Columbia, Alberta, Ontario and Quebec. Trudeau held a news conference on Feb. 21, regarding the ongoing situation. He had met that morning with the Incident Response Group, an emergency committee that addresses national crises, and that “every attempt at dialogue has been made, but discussions have not been productive. We can’t have dialogue when only one party is coming to the table. For this reason, we have no choice but to stop making the same overtures…The fact remains: The barricades must come down, the injunctions must be obeyed and the law must be upheld.”

Trudeau reiterated that the government’s resolve to continue the healing process with First Nations peoples after decades of maltreatment was “as strong as ever,” but added that “hurting Canadian families from coast to coast to coast does nothing to advance the cause of reconciliation.”

On Feb. 24, the government gave the protesters at the Mohawk barricade outside Belleville, ON, an ultimatum: Dismantle the blockade by midnight on Monday and leave the area, or face charges. But Monday morning came and went without any sign of the protesters leaving, and Ontario Provincial Police have moved into the area to enforce the government’s demand.

Their blockade blocks a critical line between Toronto and Montreal; Via Rail has said it will resume service on several routes today, including the Quebec City-Montreal-Ottawa line.

Michelle Merrifield, business consultant for ASI Canada, said everyday essential goods like baby formula and propane can’t be shipped across the country. Meanwhile, business travel by rail has been hindered considerably. “At either end of the country at the ports, promo suppliers’ products come into the country from overseas,” she said. “Ships are at anchor in Halifax and Vancouver because the docks are full.”

Scott Hulbert, managing director of ideavation (asi/229801) in Toronto, told ASI Canada that he does indeed have imports from Asia stuck on the West Coast. Typically, product spends about 20 days at sea, and then between 12 and 14 days on cross-country freight trains to a rail hub in nearby Brampton, where they’re inspected by customs agents. Then, it’s another couple of days before final delivery. But the current situation has trapped products in British Columbia, and Hulbert has few answers for clients.

“No one knows what’s going on,” he said. “It’s a logjam no one can explain. I have program products that have been stuck there for two weeks. What also compounds this is it’s the heaviest time of year for shipments because suppliers ordered more inventory ahead of the Chinese New Year. So, there are extra goods held up at port, and they can’t get shipped.”

George Cooper, vice president of sales for the U.S. and Canada at Fashion Biz (asi/53731) in Burnaby, BC, said almost three weeks of protests are going to have a long-term impact on the promo supply chain, even if it soon comes to a resolution. “Boats can’t unload,” he said, “so this may stretch delays in our Canadian warehouses by months.” 

For those companies who’ve already received their inventory for the first two quarters of the year, they’re waiting for the situation to resolve. “Some vendors’ shipments have been delayed,” said Sam Singh, president and CEO of Full Line Specialties (asi/199688) in Surrey, BC, “But I know it’s only temporary and outside of our control. At this point, I’m more concerned with shipment delays, vendor inventory issues and risk to human lives due to Coronavirus.”

Canada is certainly feeling the economic pain on a daily basis as the blockades remain standing and much of the country’s rail service remains stalled. “The Canadian economy is suffering to the tune of millions upon millions of dollars a day,” said Steve Levschuk, president of Talbot Marketing (asi/341500) in London, ON. “We have a few manufacturing customers who can’t receive any raw materials right now. They do have a few more weeks of inventory, but if the blockades go on much longer, they’ll have to temporarily lay off employees. I’ve heard of a few suppliers with product stuck on rail cars that are unable to move. They’re sitting in limbo as these blockades play out.”

Alexandre Brault, vice president and partner of Tango Communication Marketing (asi/341612) in Montreal, had just three words for the situation: “It’s a nightmare.”