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Canadian Pacific Railway and Hudson’s Bay Co., Canada’s largest department store retailer, April 9 formed a partnership designed to ship more truck trailers by rail.
Hudson’s Bay agreed to ship 16,000 trailers annually on CPR’s Toronto-to-Montreal Expressway service, which would daily remove about 60 trucks from Highway 401, Canada’s busiest roadway.
CPR in February completed an Expressway terminal in Scarborough, Ontario, near Hudson’s Bay’s eastern distribution center after the retailer approached the railroad looking for ways to reduce the number of company trucks on Highway 401.
Four daily trains will serve the Scarborough terminal, averaging seven hours between Toronto and Montreal on Expressway, designed as a fast roll-on/roll-off trailer-on-train service using specially-built rail cars. CPR officials believe Expressway, which operates scheduled trains between Detroit, Toronto and Montreal, can help reduce highway congestion and greenhouse gas emissions.
"By working very closely with Hudson’s Bay, we were able to develop an alternative to moving trailers on the 401," said Hugh MacDiarmid, CPR executive vice president, commercial, in a prepared statement. "The Expressway solution proves rail can serve the competitive and time-sensitive retail industry while delivering environmental benefits."
The Toronto-to-Montreal service is part of a CPR/Hudson’s Bay agreement designed to make CPR the retailer’s exclusive rail carrier between eastern and western Canada.