Canadian Pacific Railway and CP Ships have reached a long-term agreement that will see CPR continue as the shipping company’s exclusive Montreal Gateway rail carrier well into the future.
The two companies have extended their existing agreement, originally due to run until 2004, for another 10 years to 2014. The new agreement secures CPR’s position as the leading rail service provider in the Port of Montreal, handling the majority of the port’s containerized rail traffic.
CPR and CP Ships had agreed in principle to the terms of the agreement before their recent spin-off from Canadian Pacific Limited.
"By guaranteeing the continuation of this strong and historic business relationship, CP Ships will be able to further develop its already-extensive Montreal Gateway intermodal network and secure its position as the North Atlantic market’s leading carrier," commented Ray Miles, CEO of CP Ships.
CPR operates 45 trains a week between the Port of Montreal and major centres in the northeastern and midwestern U.S., including Chicago, and central and western Canada. CP Ships traffic through the Port of Montreal consists mainly of import and export cargo moving between North America and North and Mediterranean Europe.
CPR’s Montreal-Chicago-Detroit corridor is part of the most direct route between Europe and the U.S. Midwest. More TransAtlantic container traffic moves through this corridor than any other rail-to-port routing in North America.
Canadian Pacific Railway is North America’s first transcontinental railway and is the only transcontinental carrier with direct service to the U.S. Eastern Seaboard. CPR’s 14,000-mile network serves the principal centres of Canada, from Montreal to Vancouver, and the U.S. Northeast and Midwest regions. Its track feeds directly into the Chicago hub from the East and West coasts. Alliances with other carriers extend CPR’s market reach beyond its own network and into the major business centres of Mexico.
One of the world’s top ten container shipping companies, CP Ships provides international transportation services in four key regional markets: TransAtlantic, Australasia, Latin America and Asia. Within these markets CP Ships operates in 24 trade lanes, most of which are served by two or more of its six brand names:
ANZDL, Canada Maritime, Cast, Contship Containerlines, Lykes Lines and TMM Lines. Their combined fleet of more than 80 ships carries nearly 2 million teu per year.
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