Fastfrate Group, CPKC extend long-term agreement to connect Canada, U.S. and Mexico

Fastfrate Group renews and enhances its long-term agreement with Canadian Pacific Kansas City (CPKC). This new five-year agreement features operational enhancements, infrastructure investments, and continental service expansion.

“Fastfrate and CPKC have had a successful and collaborative partnership for the past 58 years,” says Fastfrate Group executive chair Ron Tepper. “That being said, I have never been as excited as I am today given the size and scope of opportunities ahead. We are honoured to be CPKC’s long-standing partner in Canada, and excited about expanding 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 is a moment for celebration at CPKC,” says Jonathan Wahba, CPKC’s senior vice-president of sales. “We are especially pleased to expand our relationship with CDI and enhance the service level we provide to our shared customers by creating an industry first private gate, complete with CPKC’s FastPass entrance in both our Toronto and Montreal intermodal terminals.”

This agreement solidifies and expands Canada Drayage Inc. (CDI) (a Fastfrate Group company) as one of the largest coast to coast drayage providers in Canada. As part of this announcement, CDI will become one of the largest drayage providers in North America for CPKC.

Fastfrate Group and CPKC will jointly 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 will also dedicate 15 acres 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. Both 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 will 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,” says Fastfrate 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 service has opened the door for significant road to rail conversion and we are pleased to see Fastfrate deploying their assets deep into Mexico,” says Wahba. “Fastfrate’s co-location with CPKC terminals in Canada, private gates, material drayage capabilities, and extensive expertise working directly with our railroad uniquely positions them to win in this marketplace.”

This new agreement will bring benefits to the Fastfrate stable of companies well beyond CDI and the LTL business. Fastfrate’s most recent acquisition, Challenger Motor Freight, will benefit from an enhanced suite of services it can offer to its largest customer segment – automotive parts.

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