CN sets sights on expansion with new planned intermodal and logistics hub

Class I railroad carrier CN announced this week that it intends to construct a $259 million (Canadian) intermodal and logistics hub adjacent to its main line in Milton, Ontario, which is about 30 miles west of Toronto.

CN President and CEO Claude Mongeau said in a statement that this facility will help it efficiently handle growing intermodal traffic. In 2014, intermodal business, which is mainly comprised of containerized international and domestic cargo moving in concert with trucks and ocean container vessels, was its largest business unit in 2014, with $2.7 billion (Canadian) in revenues.

“The new hub will benefit our customers and the regional economy by improving central Canada’s access to the key transborder market as well as the Pacific and Atlantic coast trade gateways we serve, generating new supply chain efficiencies in the GTHA (Greater Toronto and Hamilton Area), and creating well-paying local jobs,” he said.

CN’s new location will complement Brampton Intermodal Terminal, the company’s current Toronto-area terminal that is approaching capacity and is expected to remain in operations for the foreseeable future.

CN Director of Communications and Public Affairs Mark Hallman told LM that the Brampton International Terminal handled roughly 1 million containers in 2014.

“CN requires a satellite intermodal hub in the Greater Toronto and Hamilton Area to accommodate intermodal traffic growth,” explained Hallman. “The new Milton, Ont., facility, upon opening will handle approximately 300,000 container units per year. When operating at full capacity, the hub is expected to handle 450,000 container units per year.”

Other supply chain benefits of the new facility for the GHTA cited by CN include:
-facilitating logistics development in Milton and the Regional Municipality of Halton, the facility is expected to attract more warehousing distribution centres (DCs) and associated employment—new DCs have opened near Milton in recent years owing to land availability and good access to the highway system;
-supplying additional intermodal capacity and container availability for exporters located in the southwest area of the GTHA, and;
-creating more than 1,000 direct and indirect jobs in Milton and Halton Region.
CN will submit a complete project description of the planned Milton hub to the Canadian Environmental Assessment Agency for review.