(CPR issued the following news release on May 26.)
VANCOUVER — Construction of a $20-million regional distribution centre at Canadian Pacific Railway’s Vancouver Intermodal Facility and a new long-term contract with the railway are setting the stage for Westfair Foods Ltd. to increase its share of the retail grocery market in Western Canada.
“Building our new facility in close proximity to CPR’s Vancouver Intermodal Facility makes good business sense,” said Bruce Kent, Vice President, Westfair Foods Ltd. “This move will reduce our costs and give us the ability to service the long-term growth of our retail stores.”
Construction of the new 260,000 square foot distribution centre east of Vancouver in Pitt Meadows is scheduled to begin in August and open late in 2003. Westfair is consolidating two departments from its existing Vancouver warehouse at the new centre and creating approximately 100 new jobs.
“We have a long-term relationship with CPR and we’re committed to growing with them. Transportation is a major cost factor in the distribution of food and any initiative to make transportation more efficient is a step forward,” Kent said.
Vancouver and the lower mainland comprise a large market for Westfair, which has 23 retail stores operating under commercial banners such as the Real Canadian Superstore and Extra Foods.
John McBoyle, CPR’s General Manager, Domestic Intermodal, said Westfair’s move is a first in the Canadian retail food industry. No other grocery chain in Canada has tied its distribution facilities to rail. McBoyle said the co-location is a good fit for CPR, which has land available next to its Vancouver Intermodal Facility and is already using its intermodal service to help Westfair source a range of products worldwide.
“Westfair’s decision to build its new centre at Pitt Meadows demonstrates the success of our co-location strategy,” McBoyle said. “By co-locating facilities with our customers, we can provide more efficient service at a lower cost, which will benefit Westfair’s customers.”
Other major shippers such as Sears Canada, Canadian Tire and Consolidated Fastfrate have also partnered with CPR by building their regional distribution centres next to CPR intermodal facilities in major Canadian cities. Under this co-location arrangement, these shippers have their own private access to CPR’s facilities. Containers and trailers are delivered and picked up within minutes of the arrival or departure of time sensitive intermodal trains without truck movements on public roads.
Intermodal service is the strongest growth area for CPR, with revenues increasing by $19 million, or 9 per cent, in the first quarter of 2003. Intermodal was also CPR’s leading revenue growth performer in 2002, increasing 10 per cent. In all, revenue from intermodal service has grown by more than $200 million or 30 per cent in the last five years. This is more loads, revenue and growth than traditional traffic such as coal, grain and other bulk products.
CPR domestic intermodal containers serve high-priority Canadian and U.S. markets. CPR Intermodal weds the superiority of trains in moving large volumes of freight over long distances with the flexibility of local truck delivery and pick-up. It capitalizes on the benefits of safe and environmentally friendly rail transportation to replace long-haul trucking. This frees up trucks, drivers and highway capacity that can be better used for other purposes. By reducing long-haul trucking, it also reduces taxpayer-funded highway maintenance costs.
A single CPR intermodal train can haul the equivalent of 300 trucks. Canadian Pacific Railway, cognized internationally for its scheduled railway operations, is a transcontinental carrier operating in Canada and the U.S. Its 14,000-mile rail network serves the principal centers of Canada, from Montreal to Vancouver, and the U.S. Northeast and Midwest regions.
CPR feeds directly into America’s heartland from the East and West coasts. Alliances with other carriers extend its market reach throughout the U.S. and into Mexico. For more information, visit CPR’s website at www.cpr.ca.