With supply change issues continuing to prevail in Canada, transportation providers are paying increasing attention to offering warehouse space through distribution centers to boost resiliency and competitiveness. This is especially the case around critical hubs like the Port of Vancouver, Canada’s leading Pacific gateway handling fully 40% of traffic handled by the 17 Canada Port Authorities, and the Greater Toronto Area, accounting for one fifth of Canadian GDP and leading generator by far of the nation’s foreign trade.
It is with such important demands in mind that Maersk recently announced plans for a new Toronto distribution center – slated to go on stream in November 2022 - to serve the growth of Canada’s import and export cargoes via ocean, rail, air and road. The facility is designed to complement an existing Maersk Performance Team Pacific Transload Express center in Vancouver that opened last September to render Asia-Pacific Northwest supply chains more flexible and cost-effective.
As a result, end-to-end supply chain solutions will be created by Maersk’s multi-gateway Ocean services calling the Port of Prince Rupert, Vancouver, Seattle, Montreal, Halifax and Mobile (Alabama, U.S.) that can be integrated with rail service, air freight and Maersk Customs Services for customs clearance and cross border expertise.
“Toronto is the fastest growing logistics intersection for goods across Canada as well as into the United States through the US border. Our Toronto site will create a strong hub to help accelerate Canadian supply chains and strengthen their ability to face future supply chain disruption challenges,” said Jason Walker, Executive Vice President of Operations at Performance Team - A Maersk Company.
Some 8.6 million people live within 50 miles of the Performance Team Toronto facility, representing the highest population density in Canada. Nearly 15 million people are within 250 miles, creating Canada’s largest customer and consumer demand market.
As the largest logistics center in Canada, Toronto has excellent access to seven major highways that provide access to locations across Canada and U.S. border crossings. The market is directly served and focused as a hub by both the Canadian National and Canadian Pacific railways with intermodal railyards.
In addition, the Toronto Pearson International Airport processes over 45% of Canada’s air cargo, serving 175 international destinations and most Canadian E-Commerce consumers due to the strategic geographic location. The airport also serves as the center for the region’s rail and highway network, ensuring scaled supply chains to ship to the region’s retailers who are expanding in this market.
The 568,000 square foot, 97 dock door Toronto building will be a state-of-the-art facility located on Airport Road in the Toronto metro-area – strategically-located as the ideal balance of distance to port, airport, and close proximity to the Canadian Rail Intermodal complex. The ability to transload international containers into domestic 53-foot trailers for inland rail destination to Toronto and the U.S. Midwest enables customers to achieve overall cost savings (per cubic meter) for domestic distribution, while reducing storage costs related to port demurrage and detention of international containers. Supply chains flowing…
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