Fastfrate Group, CPKC Extend Agreement to Connect Canada, U.S. and Mexico

(CNW Group/Fastfrate Group)

Fastfrate Group on Feb. 27 announced that it has renewed and enhanced its long-term agreement with Canadian Pacific Kansas City (CPKC). The new five-year agreement features operational enhancements, infrastructure investments and continental service expansion.

This agreement, Fastfrate Group says, “solidifies and expands Canada Drayage Inc. (CDI), a Fastfrate Company, as the largest coast-to-coast drayage provider in Canada.” As part of this announcement, CDI will become the largest drayage provider in North America for CPKC.

“Fastfrate and CPKC have had a successful and collaborative partnership for the past 58 years,” said 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 honored to be CPKC’s long standing partner in Canada, and excited about expansion into the U.S. and Mexico. This is great for us, great for them, and great for our clients.”

“Extending our decades-long relationship with the Fastfrate Group brings tremendous opportunities for growth,” said CPKC Senior Vice President of Sales & Marketing, Bulk & Intermodal Cardo Jonathan Wahba. “We are especially pleased to expand our relationship with Canada Drayage Inc. and enhance the service we provide to our shared customers by creating an industry-first private gate, complete with CPKC’s FastPass entrance, at both our Toronto and Montreal intermodal terminals.”

According to Fastfrate Group, the company and CPKC will invest in the latest 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 C$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. Both, the company says, “will streamline operations and improve fluidity for domestic and international shippers.”

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, and all points in between. With an investment of 200 containers in 2023 and an additional 200 in 2024, Fastfrate says it 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.”

“Our industry-leading Mexico Midwest Express service has opened the door for significant road to rail conversion opportunities, and we are pleased to see Fastfrate deploying their assets deep into Mexico,” said Wahba. “Fastfrate’s co-location with CPKC terminals in Canada, private gates, considerable drayage capabilities and extensive expertise working directly with our railroad uniquely position them to win in this marketplace.”

According to the company, this new agreement “will bring benefits to the Fastfrate Group stable of companies well beyond CDI and the LTL business.” Fastfrate’s most recent acquisition, Challenger Motor Freight, will also benefit from an enhanced suite of services that it can offer its largest customer segment—just in time automotive parts.

“For the automotive industry, rail is environmentally, financially, and operationally more efficient,” said Challenger Motor Freight CEO Jim Peeples. “We’re now gearing up to handle automotive by rail, we expect—and are preparing for—a huge demand.”

As one of CPKC’s largest and longest standing customers, and as the only co-located shipper to CPKC in both Toronto and Montreal, the Fastfrate Group says it is “uniquely positioned to take advantage of the new transnational reach that only the CPKC network can offer.”