Market Overview

Purolator To Invest C$1 Billion To Grow Capacity

Purolator To Invest C$1 Billion To Grow Capacity

Purolator, the Canadian last-mile and logistics provider, will spend C$1 billion to increase capacity in a plan that includes a new "super hub" in Toronto and more than 1,000 new vehicles.

Purolator announced the investment, the equivalent of about US$780 million, on June 25 along with a five-year growth strategy. The company said it was responding to record volumes and growth from e-commerce.

CEO John Ferguson said the investment would "future proof" the business of Canada's largest parcel delivery company.

"Purolator has experienced record growth over the past three years. We picked up and delivered over one-quarter of a billion packages in 2018 and we expect our growth trajectory to continue," Ferguson said in a statement.

The heart of the plan is a C$330 million national hub in Toronto, slated to open in 2021. The 430,000 square-foot facility will triple its capacity and utilize automation. 

Purolator will also add more than 1,000 new vehicles to its fleet in 2019 and 2020. It also plans to introduce fully electric vehicles in 2020, complimenting its hybrids. 

The company reported having a  fleet of 4,020 vehicles as of May. It included more than 3,058 courier vehicles, 323 hybrid-electric vehicles, 177 medium trucks and 462 tractors.

The company also will open a new 110,000 square-foot terminal in the Toronto suburbs in September, and add as many as 135 new delivery routes. Other regional expansions will follow, the company said.

Purolator will also grow its Mobile Quick Stop service in the Toronto area, which creates mobile package pickup spots, and pilot electric cargo bikes.

Purolator is largely owned by Canada Post.

Image Sourced From Pixabay

Posted-In: Freight Freightwaves Investing LogisticsNews Global Markets General


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