Progress has begun to emerge in on the second day of the Port of Montreal lockout Tuesday.

Contract negotiations are set to begin Thursday, and the Longshoremen's Union, Local 375 of the Canadian Union of Public Employees representing 850 longshoremen said Tuesday afternoon it is ready to begin discussions Wednesday.

Ships have been stalled from moving in and out of the port since Monday morning, stalling cargo from import/export companies and threatening business across the city and country.

As much as 60 per cent of exports, other than those to the U.S., transit through the Port of Montreal.

The lockout will cost the Maritime Employers Association $800,000 per week, spokeman Gilles Corriveau said Tuesday.

At issue for the union is job security, as well as keeping guaranteed payments when longshoremen are on-call and waiting for work.

The longshoremen, who unload shipping containers full of goods at the port, have been without a contract since Dec. 31, 2008.

Union spokesman Daniel Tremblay said representatives are willing to meet with the mediator.

"We're still open to negotiations," Tremblay said.

Re-routed shipments

Ships have been re-routed to Halifax, where one unloaded Tuesday and two more are set to arrive Wednesday morning.

The longshoreman's union, local 269 in Halifax, confimed to CTV in Halifax that its lawyers sent a letter to its employers in the Nova Scotian city stating that unionized workers will not unload ships diverted from Montreal to Halifax.

Michele Peverin, a spokesperson from the Port of Halifax, said Tuesday evening that she was not aware of any halt to workflow.

"The vessel in port today (Tuesday) was serviced and I am not aware of any issues with labour today or pending for morning," Peverin stated in an e-mail to CTV Montreal reporter Annie DeMelt.

Other ships have been re-routed to New York and Norfolk, Va., said Corriveau.

Long term, however, some exporters are concerned about alternate ports' capacity, as well as extra travel costs.

"It's going to be more expensive for Quebec exporters, at the end of the day it's going to have an impact on the profit margin, and eventually an impact on the competitiveness of Quebec exporters, so that's why we'll be worried if it goes weeks and months," said Simon Prevost of the Quebec Manufacturers and Exporters Association.

Corriveau said containers full of goods, some of which could be perishable, were still sitting at the port.

Wine from Europe and sofas, are among numerous imported consumer goods affected by the lockout.

Quebec's provincial liquor board has said it has enough European wine to last several weeks.

Corriveau said businesses that depend on the port to get their goods in or out of Canada will have to decide how long they want to wait.

"Are they going to wait before shipping or are they going to reroute their stuff and have it shipped by another harbour or by another way. It could be airlines, for instance, for certain companies," he said.

Montreal packaging company Cascades said it is desperate to receive a paper machine it calls the backbone of a $20-million investment.

"From a political perspective, we're planning to make a few phone calls to put pressure on, or to tell the government how important some of the materials we have (are)," said Hubert Bolduc of Cascades.

The Port of Montreal, the country's second-largest after the Port of Vancouver, says it generates spinoffs of some $2 billion annually, and creates more than 17,600 direct and indirect jobs.

With a report from The Canadian Press