The largest container importer in Canada, Canadian Tire Corporation, has recently acquired 25% of equity interest in Ashcroft Terminal Limited, a port facility located around 300 kilometres east of Vancouver, British Columbia.
The two companies signed an investment agreement for Ashcroft Terminal to smoothly invest in long-term infrastructure and capacity growth. PSA International Pte Ltd will continue as Ashcroft Terminal’s main operator, and retain 60% of interest, while their founding partner, CrescentView Investments Ltd will own the remaining 15%.
As the only privately owned industrial property in Canada where both Class 1 railroad lines (Canadian National Railway and Canadian Pacific Railway) pass through, Ashcroft Terminal is responsible for a large portion of transporting imports and exports between Vancouver and the rest of the North American market. It is also located close to British Columbia’s major highways that are crucial to the province’s resources.
CEO of Ashcroft Terminal, Enno Koll, states that “Ashcroft Terminal facilitates the shift from truck to rail and significantly reduces the movement of trucks in the busy Metro Vancouver area,” and the agreement with Canadian Tire will allow for further expansion.
Canadian Tire will be able to further diversify Ashcroft Terminal’s customer base, grow its services, and help develop customizable solutions for other retailers in North America.
But the agreement isn’t completely one-sided. Paul Draffin, Chief Supply Chain Officer at Canadian Tire Corporation, says that the investment will also be beneficial for Canadian Tire. By shifting cargo transportation from trucks to the rail system in Western Canada, Canadian Tire aims to reduce carbon emissions and improve its network’s fulfillment performance.
With Ashcroft Terminal’s existing capabilities to serve a broad range of industries and customers by moving cargo by rail, the collaboration with Canadian Tire may be able to increase the efficiency and sustainability of Canada’s supply chain industry.