Maersk Plans Toronto Distribution Center
May 9, 2022
Adds more distribution center capacity and omni-channel fulfillment to
help make Toronto
supply chains more competitive.
Supports global integrator strategy, creating new supply chain
infrastructure for end-to-end
Team – A Maersk Company is planing a new Toronto distribution center
designed to serve the growth of Canada’s import and export cargoes via
ocean, rail, air and road.
End-to-end supply chain solutions will be created by Maersk’s
multi-gateway Ocean services calling the Port of Prince Rupert,
Vancouver, Seattle, Montreal, Halifax and Mobile (Alabama, U.S.) that
can be integrated with rail service, air freight and Maersk Customs
Services for customs clearance and cross border expertise.
Jason Walker, Executive Vice President of Operations at Performance Team
- A Maersk Company said "Toronto is the fastest growing logistics
intersection for goods across Canada as well as into the United States
through the US border. Our Toronto site will create a strong hub to help
accelerate Canadian supply chains and strengthen their ability to face
future supply chain disruption challenges."
8.6 million people live within 50 miles of the Performance Team Toronto
facility, representing the highest population density in Canada. Nearly
15 million people are within 250 miles, creating Canada’s largest
customer and consumer demand market.
As the largest logistics center in Canada, Toronto has superb access to
seven major highways that provide access to locations across Canada and
U.S. border crossings. The market is directly served and focused as a
hub by both the Canadian National and Canadian Pacific railways with
Intermodal railyards. In addition, the Toronto Pearson International
Airport processes over 45% of Canada’s air cargo, serving 175
international destinations and most Canadian E-Commerce consumers due to
the strategic geographic location. The airport also serves as the center
for the region’s rail and highway network, ensuring scaled supply chains
to ship to the region’s retailers who are expanding in this market.
Omar Shamsie, President of Maersk Canada added, "We are keeping Canadian
customers at the forefront of everything we do and this new supply chain
asset will be essential to improving supply chain flows in our Toronto
logistics hub. We are looking at all possible means to help trade growth
by getting logistic flows moving smoothly and minimizing supply chain
disruption of our customers in North America. The pandemic has changed
supply chain demand models. E-commerce sales continue to soar and supply
chains need to tap into this growing market. Our customers are looking
for faster order fulfillment in Toronto and the surrounding markets
through integrated logistics."
Performance Team Toronto building will be a new state-of-the-art
facility located on Airport Road in the Toronto metro-area –
strategically-located as the ideal balance of distance to port, airport,
and close proximity to the Canadian Rail Intermodal complex. The 568,000
square foot, 97 dock door facility will open in November 2022 and be
operated by Performance Team - A Maersk Company.
The new Toronto facility will complement Performance Team’s existing
Pacific Transload Express center in Vancouver that opened in September
2021 to make Asia/Pacific Northwest (PNW) supply chains more resilient,
flexible and cost-effective. The ability to transload international
containers into domestic 53-foot trailers for inland rail destination to
Toronto and the U.S. Midwest enables customers to achieve overall cost
savings (per cubic meter) for domestic distribution, while reducing
storage costs related to port demurrage and detention of international
containers. Supply chains flowing through the facility comprise
fast-moving consumer goods (FMCG) in the retail and lifestyle segment
that need agile response capabilities to consumer demand fluctuations.
FMCG represents 80-90% of the volumes and auto parts are 10-20% into the