Ashcroft Terminal Limited and Canadian Tire Corporation (TSX:CTC, TSX: CTC.A) have signed an investment agreement in which the latter will acquire a 25% equity interest in Ashcroft.
PSA International Pte Ltd will continue as the terminal operator and retain a majority interest of 60%, with the remaining 15% interest held by founding partner CrescentView Investments Ltd.
Ashcroft is an inland port facility some 300 kilometres east of Vancouver, Canada’s only major privately-owned industrial property served by Class 1 railroad lines – Canadian National Railway and Canadian Pacific Railway. Throughput includes import and export cargoes to and from the marine terminals in Vancouver, across Canada and other North American markets.
Operating since 2001, the terminal handles 7,000 railcars and 6,000 trucks annually.
The partnership is expected to allow Ashcroft to invest in long-term infrastructure and capacity growth.
The terminal has been affected by forest fire smoke lately but remains open for business.
Ashcroft CEO Enno Koll said Canadian Tire will further diversify the customer base, enabling Ashcroft to develop tailored solutions for North American retailers while continuing to grow its bulk-service offerings.
“We have the potential to increase the efficiency and sustainability of the supply chain for containers imported and exported through the marine terminals in Vancouver,” Koll said. “Ashcroft Terminal facilitates the shift from truck to rail and significantly reduces the movement of trucks in the busy Metro Vancouver area.”
“Having strategic access to high-demand capacity will enable greater control over our end-to-end supply chain, which has become increasingly critical in a time where global supply chains have been completely disrupted and new resiliency is required,” Canadian Tire Corporation chief supply chain officer Paul Draffin said.