In keeping with Maersk’s global strategy, the “transload facility is designed to apply Maersk’s global integrator of container logistics strategy. It will 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”, the  companies said in a statement.

“Maersk’s ambition to establish a sustainable supply chain aligns with CP’s initiatives to fight climate change. This compelling combination will provide an effective and efficient long-term intermodal solution for customers.”

The agreement signals another step by Canadian railroads to work with shipping lines and terminal operators to develop infrastructure. CN Rail has worked closely with DP World at Prince  Rupert, and more recently entered into a joint venture with Hutchison Ports to develop a new container terminal at Quebec City.

The area around Vancouver has long had potential for inland terminals. Singapore’s PSA International recognised this in 2018 when it took a 60% stake in Ashcroft Terminal, a privately  owned 320-acre site approximately 300 km east of Vancouver.

CP is now working with Maersk at a site much closer to the Vancouver market and its marine terminals, with the all-important support of a railroad.

“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 Keith Creel, CP’s president and CEO. “Together with Maersk, the global shipping leader, we will transform intermodal transportation in North America.” 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 omni-channel fulfilment are testing every company, so this integrated logistics solution with CP will clearly elevate supply chain performance.”

The Port of Vancouver has managed to grow its share of the west coast North American container market in recent years, and there is a shortage of warehouse space around the port. “So we applied our global integrator strategy to simplify the current situation and create more end-to-end supply chain solutions by reducing multimodal handoffs,” said Shamsie. “We can now offer more responsiveness to the pace of business by giving supply chain leaders more control of order timing/fulfilment through inland routing flexibility, better velocity gained from one-day savings of rail versus truck, and cost-savings through seamless transload operations into domestic 53ft 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.

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This complete item is approximately 470 words in length, and appeared in the September 2020 issue of WorldCargo News, on page 16. To access this issue download the PDF here