Fastfrate Group and CPKC renew drayage contract

Fastfrate Group and CPKC (Canadian Pacific Kansas City railroad) have renewed their drayage agreement.

As part of this announcement, Canada Drayage Inc. (CDI) will become the largest drayage provider in North America for CPKC.

Fastfrate Group and CPKC will invest in gate technology which will grant CDI immediate access through Fastfrate private entrances in CPKC facilities in both Toronto and Montreal. Fastfrate Group will also dedicate 15 acres of prime property and invest $10 million in preparation to create a container yard next to CPKC’s Toronto intermodal facility and a pre-pull yard for CPKC’s domestic and international container line customers.

“Fastfrate and CPKC have had a successful and collaborative partnership for the past 58 years,” says Fastfrate Group executive chairman Ron Tepper.

“That being said, I’ve never been as excited as I am today given the size and scope of opportunities ahead. We’re honoured to be CPKC’s long standing partner in Canada, and excited about expansion into the US and Mexico. This is great for us, great for them, and great for our clients.”

As part of this agreement, Fastfrate Group will market CPKC’s full load service on a direct rail line between Canada and Mexico, and their Intermodal LTL service from all points in Canada as well as the Midwest U.S. to Texas, Mexico. With an investment of 200 containers in 2023 and an additional 200 in 2024, Fastfrate will immediately deploy 100 containers on CPKC’s Mexico Midwest Express service to meet the growing demand for Mexico.

“For a variety of geopolitical, economic, and environmental reasons, many of our customers are looking to Mexico as a new manufacturing, assembly and distribution hub,” said Fastfrate Group CEO Manny Calandrino.

“As a result, demand for North-South transportation services will outpace the industry, and our agreement with CPKC uniquely positions us to become the market leader in this space.”

Fastfrate’s most recent acquisition, Challenger Motor Freight, will benefit from an enhanced suite of services it can offer its largest customer segment – just in time automotive parts. “For the automotive industry, rail is environmentally, financially, and operationally more efficient,” says Jim Peeples, CEO of Challenger Motor Freight, “We’re now gearing up to handle automotive by rail, we expect – and are preparing for – a huge demand.”