TORONTO, Ont. — The Canadian Pacific Railway (CPR) and Consolidated Fastfrate signed a 10-year, $400-million contract to formally link the two transportation giants in partnership.

The deal is designed to set a new industry standard for the movement of less-than-truckload (LTL) freight.

“The signing of this contract is a source of great pride and satisfaction for all members of the CPR family and not just because of its positive financial implications,” says CPR president Robert Ritchie.

“Since 1965 we have satisfied Consolidated Fastfrate’s service and price needs to such an extent that it is partnering with us exclusively for the next decade.”

CPR and Fastfrate — Canada’s largest LTL carrier — will now offer combined rail and truck service for LTL freight throughout Canada, the U.S. and Mexico, using intermodal containers.

“Under this contract, we will give North American shippers a level of intermodal transportation with trains and trucks so closely linked that it will be hard to tell where one leaves off and the other begins,” says Ritchie. “That’s a breakthrough.”

The two companies expect the contract will lead to a 25-per-cent increase in the value of LTL transportation business for the railway, as well as providing a solid foundation for further growth.

“This contract demonstrates that we have hitched our wagon firmly to the CPR’s iron horse,” says Fastfrate president Ron Tepper.

“Because the CPR has delivered that kind of service to us, we invested $40 million in new facilities inside or adjacent to the CPR’s intermodal terminals across Canada. We are already planning additional services, facilities and support systems that will take this integrated rail-truck service to new levels. We fully expect that our business will grow,” says Tepper.