The single largest container importer in Canada, Canadian Tire Corporation will acquire a 25% equity interest in Ashcroft Terminal Limited according to an investment agreement signed by the two companies.
PSA International Pte Ltd will continue as the operator and retain a majority interest of 60%, with the remaining 15% interest held by founding partner CrescentView Investments Ltd.
Ashcroft Terminal is an inland port facility located approximately 300 kilometres east of Vancouver in British Columbia.
It is the only major privately-owned industrial property in Canada where both Class 1 railroad lines – Canadian National Railway and Canadian Pacific Railway – run through, transporting import and export cargoes to and from the marine terminals in Vancouver, across Canada and other North American markets.
In addition to its rail connectivity, Ashcroft Terminal is located close to British Columbia’s major highways that serve much of the province’s resource industries.
“Ashcroft Terminal facilitates the shift from truck to rail and significantly reduces the movement of trucks in the busy Metro Vancouver area,” said Enno Koll, CEO of Ashcroft Terminal and Regional Head of PSA Americas.
The partnership with Canadian Tire is expected to allow Ashcroft Terminal to further invest in infrastructure and capacity growth.
According to the announcement, Canadian Tire will further diversify the customer base and enable Ashcroft Terminal to develop tailored solutions for retailers in North America, while continuing to grow its service offerings to bulk customers.
Paul Draffin, Chief Supply Chain Officer at Canadian Tire Corporation, believes this investment will drive improvements in the company’s network lead time and fulfillment performance, while it will also reduce its carbon emissions by shifting volume from trucks to rail in Western Canada.
Ashcroft Terminal will also continue to bring long-term growth, employment and training opportunities and growth to the local communities.
“We have the potential to increase the efficiency and sustainability of the supply chain for containers imported and exported through the marine terminals in Vancouver,” noted Enno Koll.
“Having strategic access to high-demand capacity will enable greater control over our end-to-end supply chain, which has become increasingly critical in a time where global supply chains have been completely disrupted and new resiliency is required,” commented Draffin.
