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Maersk’s Performance Team Plans New Toronto DC

Performance Team–A Maersk Company has announced plans for 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 on the Port of Prince Rupert, Vancouver, Montreal and Halifax in Canada, and Seattle and Mobile, Ala., in the U.S., that can be integrated with rail service, air freight and Maersk Customs Services for customs clearance and cross-border expertise.

“Toronto is the fastest growing logistics intersection for goods across Canada, as well as into the United States through the U.S. border,” Jason Walker, executive vice president of operations at Performance Team, said. “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.”

Maersk noted that 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 offers good access to seven major highways that provide access to locations across Canada and U.S. border crossings. The market is directly served by both the Canadian National and Canadian Pacific railways with intermodal railyards.

In addition, the Toronto Pearson International Airport processes more than 45 percent 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.

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“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,” Omar Shamsie, president of Maersk Canada, said. “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.”

The Performance Team Toronto building will be a state-of-the-art facility located on Airport Road in the Toronto metro-area. The 568,000-square-foot, 97-dock-door facility will open in November.

The new Toronto facility will complement Performance Team’s existing Pacific Transload Express center in Vancouver that opened in September to make Asia-Pacific Northwest 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 for domestic distribution, while reducing storage costs related to port demurrage and detention of international containers, the company said.

Supply chains flowing through the facility comprise fast-moving consumer goods in the retail and lifestyle segment that need agile response capabilities to consumer demand fluctuations and represent 80 percent to 90 percent of the volume.

Performance Team currently operates more than 60 distribution and fulfillment center locations in North America with transportation services designed to serve storage, fulfillment, distribution and inland transportation needs. The Toronto facility will operate as a fulfilment facility, with transload services, e-commerce logistics and omni-channel services for business-to-business and business-to-consumer supply chain models.