CP Rail looks to boost logistical and warehousing network with deal
CALGARY—Canadian Pacific Railway Ltd. has agreed to acquire Hamilton-based Steelcare Inc. for an undisclosed amount.
Steelcare operates the largest transload facility in Canada and serves as a distribution hub, providing transloading and distribution services for steel products.
“CP is committed to exceptional customer service and with direct ownership of Steelcare, we are better equipped to manage our own supply chain and utilize our in-house expertise,” James Clements, CP vice-president of Strategic Planning and Transportation Services, said.
The Hamilton facility is a 168,000 square-foot facility that features two drive-through rail and truck loading and unloading areas. Steelcare is capable of handling up to 1.5 million tons of rail transload product per year.
CP Rail said the deal includes TransCare Logistics Corp., Prometheus Six Inc. as well as East Port Warehousing & Distribution, and projects $10 million in yearly revenue as a result of the transaction.
“The intent is to keep the current management structure and employees in place,” CP Rail said. It noted Clements will serve as Steelcare’s executive vice-president.