COMPETITION WATCH: Canpar wins major government contract

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TORONTO, Ont. — TransForce subsidiary Canpar has won a major, three-year contract with the government of Ontario to provide overnight courier services.

The contract kicked in Sept. 1 and runs through to 2013 with two extension options, the company announced.

Canpar says it will hire 90 new drivers and add new vehicles to its fleet to meet demand. The deal involves about 16,300 shipments per day, with 95% being completed within Ontario.

“Winning this competitive bid is a major step forward for Canpar. It not only adds about 20% to revenues, it increases the utilization of Canpar’s sorting and distribution hubs and enhances the density of the company’s delivery services across the province, which is a key factor in operating efficiency,” said Alain Bedard, chairman, president and CEO of TransForce. “We are convinced Canpar won this contract because of the investments we have made in equipment, infrastructure, technology and, especially, in ensuring we had the best people in the business. Together, these factors will ensure we can meet our commitment to the Ontario Government which, in turn, should create new opportunities to continue to build Canpar and our package and courier group.”

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