Agri-Food Central and Crossdock Manitoba form strategic alliance aimed at reducing transportation costs between Canada-Mexico

Oct 04, 2012, 14:15 ET from AGRI-FOOD CENTRAL LTD.

WINNIPEG, Oct. 4, 2012 /CNW/ - Agri-Food Central Ltd. and Crossdock Manitoba today signed a strategic alliance agreement aimed at removing industry segmentation in cross-border traffic flows and reducing total transportation costs between Canada and Mexico.

"The strategic alliance agreement with Crossdock was the missing component we required in order to make space available in our pipeline to other industries", said David Nyznyk, Director of Agri-Food Central, one of Canada's largest volume intermodal shippers of FDA regulated food products to Mexico in 2011.  "Now, with the agreement in place, and with Crossdock Manitoba as part of our established logistics network, we are offering a bi-weekly service for full container loads (FCL) and less-than-container loads (LCL) of dry goods between Canada-Mexico" said Nyznyk.

"For us, this is about leveraging Crossdock's advantages such as cross-border transport support and logistical services." said Scott Lins, President of Crossdock Manitoba.  "Our two companies have more than a ten year history together and now with the agreement in place, both parties will actively promote each others service offerings and rates in the spirit of cooperation", said Lins.

"It's a hub-and-spoke model in its truest form. The agreement with Agri-Food was a no-brainer" - Scott Lins

"What's particularly exciting about this new service offering is that it is targeting cargo that may otherwise move more than 3500 km by road" - David Nyznyk

"Congratulations to Agri-Food Central and Crossdock Manitoba on their new partnership. This collaboration effort will help improve the supply chain between Canada and Mexico for the benefit of customers and businesses that are looking for new, cost-effective ways to ship their goods to market," said Diane Gray, president and CEO of CentrePort Canada Inc.

"Agri-Food is a long-standing member of NASCO," said Tiffany Melvin, Executive Director, NASCO. "We are a coalition fighting for North American competitiveness by focusing on solutions in the areas of logistics, infrastructure, security and the creation of a skilled workforce. The agreement between Agri-Food Central and Crossdock Manitoba is a perfect example of the relationships we seek to develop at NASCO."

The anticipated outcome of the new partnership is that Agri-Food will benefit from improved economies of scale through the tuck-in of lighter weight, higher value, shipments into its existing agri-food based pipeline, and that Crossdock will benefit from increased utilization of its full range of warehousing and distribution services by existing and new shippers.

For more information on Agri-Food Central Ltd, Crossdock Manitoba, CentrePort Canada and Nasco Inc, please click on the PDF.


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