TORONTO, Ont. — Canadian Pacific (CP) Railway and Consolidated Fastfrate inked a 10-year, $500 million deal which extends their current contract for another decade.
The agreement will bring the partnership to the 50-year mark, the companies jointly announced. They first paired up in 1966, launching a national co-location program whereby Consolidated Fastfrate builds all its centres adjacent to CP’s intermodal terminals.
“The strategic relationship we have with CP, which exists at every level of their organization, has been the foundation upon which we built our company,” said Ron Tepper, president and CEO of Consolidated Fastfrate. “I am incredibly proud to sign an agreement of this magnitude. Our long-term partnership illustrates that two companies can co-operate to increase efficiencies and provide a better product to their customers.”
The companies enjoy service and cost efficiencies through their co-location program, according to officials. Consolidated Fastfrate notes it is the only LTL carrier in Canada to enjoy co-location with CP’s yards.
“Over the past 40 years we have seen the incredible growth and development of the intermodal industry, from a minor mode of transportation to a multi-billion dollar global business,” said Fred Green, president and CEO of CP. “This is an important business for CP, and CFF has been a strategic intermodal partner from the start. With this 10-year extension to our agreement, and continued strong global demand for our services, there are great growth opportunities for both CFF and CP.”
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