Canadian Pacific Railway Limited and Maersk announced they have an agreement that will result in an expansion at CP’s Pitt Meadows intermodal yard.
The two companies will build and operate a transload and distribution facility in Vancouver to expand CP’s and Maersk Canada’s supply chain options for customers, said the companies in a joint press release on Tuesday.
The CP transload facility will be an expansion of CP’s existing Vancouver Intermodal Facility, in Pitt Meadows.
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“CP’s unique landholdings in Vancouver enable us to bring to market a first-of-its-kind transload facility that creates tremendous opportunity for sustainable growth,” said CP’s president and CEO Keith Creel. “Together with Maersk, the global shipping leader, we will transform intermodal transportation in North America.”
Maersk operates in 121 countries, and 343 ports, and the new facility answers a need for warehouse space in Vancouver, where there is a shortage, said company spokesman Tom Boyd.
He said there will be jobs in warehousing and distribution created at the Pitt Meadows location. He could not say at this time how many positions will be created. CP will own the new facility, and it will be operated by Maersk.
For Maersk, there will be a change from truck to rail use under the agreement, as CP will shuttle containers to and from the ocean terminals via train. Maersk’s ambition to establish a sustainable supply chain aligns with CP’s initiatives to fight climate change, said the press release.
“This agreement installs more agile supply chain options and capacity to and from Vancouver for our North American customers,” said Omar Shamsie, President of Maersk Canada said. “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.”
Mayor Bill Dingwall said the city has reached out to CP Rail to ask for more details about the new project, and whether there are traffic or other implications for the city.
The import transload facility will be operational in 2021.