Canadian Pacific Railway (CP) and Maersk have agreed to build and operate a transload and distribution facility in Vancouver, therefore expanding CP’s existing Vancouver Intermodal Facility and benefitting from turnkey rail infrastructure.
The transload facility is designed to apply Maersk’s global integrator of container logistics strategy.
The companies aim to offer customers access to a multi-commodity transload facility that will rely on the substantial use of rail instead of truck in the Vancouver market, as CP will shuttle containers to and from the ocean terminals via rail.
According to the partners, Maersk’s ambition to establish a sustainable supply chain aligns with CP’s initiatives to fight climate change, providing a long-term intermodal solution for customers.
Omar Shamsie, president of Maersk Canada said: “This agreement installs more agile supply chain options and capacity to and from Vancouver for our North American customers.
“Marketplace fluctuations, e-commerce demands and omnichannel fulfillment are testing every company – so this integrated logistics solution with CP will clearly elevate supply chain performance.”
Warehouse space in Vancouver has been tight this year – which, combined with Vancouver ports experiencing high utilisations has placed pressure on supply chain performance.
Shamsie noted: “We applied our global integrator strategy to simplify the current situation and create more end-to-end supply chain solutions by reducing multi-modal handoffs.”
Maersk hopes to offer more responsiveness to the pace of business by giving supply chain leaders more control of order timing/fulfillment through inland routing flexibility, better velocity gained from one day savings of rail versus truck and cost savings through transload operations into domestic 53 ft trailers.
“We feel this is quite compelling to lower their year-on-year cost goals while creating a more sustainable supply chain with less truck emissions,” added Shamsie.