Copyright 2008, Traffic World, Inc.
A pair of intermodal partners locked in their relationship for another decade, as Canadian Pacific Railway, the country''s second-largest railroad, renewed a longstanding agreement with trucking company Consolidated Fastfrate.
That is the latest in a string of intermodal deals between railroads and volume customers, following a U.S. deal in which Pacer International will develop some new business with BNSF Railway and another in which truck line Schneider National agreed to feed much more of its box traffic to BNSF and CSX Transportation.
The U.S. lines do not operate in Canada, but CP rival Canadian National has added a growing intermodal route with the recent opening of the large new container terminal at Prince Rupert, which sends dedicated double-stack trains to Chicago and further south into the U.S. heartland.
CP and Fastfrate have worked together since Fastfrate first began in 1966, with a strategy that places its LTL terminals next to CP intermodal facilities. Now, the truck firm bills itself as "one of the largest privately owned providers of transportation and logistics in Canada ? transporting more then 2 billion pounds of freight annually."
They said their new deal is worth about $496 million, but a CP spokesman declined to be more specific about how that value breaks down. Fred Green, CP''s president and CEO, said that truck-rail box traffic "is an important business for CP, and CFF has been a strategic intermodal partner from the start."