Canadian carrier Cargojet says it has successfully completed the transition to its network of
all Canada Post and Purolator’s air cargo services across Canada, creating what it called “a
virtual dedicated Air Cargo Network to the Canada Post Group of Companies”.
The so-called Domestic Air Cargo Network Services contract came into full effect on 1 April for
an initial seven-year term, with extension options providing up to nine additional years. Under the
agreement, Cargojet has become the main provider of Canada-wide air cargo services for the Canada
Post Group of Companies, including Purolator’s national air cargo network.
Cargojet’s domestic air cargo network has been expanded and enhanced significantly to handle the
additional volumes and provide improved service to all customers. Cargojet has expanded its fleet,
with the addition of twelve new-generation B757-200F and B767-300F cargo aircraft, to provide the
capacity and operational reliability to take on this additional business.
“The enhancements to our air cargo network will not only provide significant additional capacity
but also provide operating efficiencies and improved service levels to all customers, with more
direct flights, later departures, and earlier arrivals, at locations across Canada”, said Ajay
Virmani, Cargojet’s president and CEO. “Cargojet is truly Canada’s Cargo Airline, providing a
highly reliable air cargo service to the Canadian overnight air cargo market, and making
significant strides to become a leading global air cargo charter service provider.”
Cargojet claims to be Canada’s leading provider of time-sensitive overnight air cargo services
and carries over 1,000,000 pounds (450,000 kg) of cargo each business night – with the Canada Post
and Purolator contract thought to have roughly doubled its traffic volumes. Cargojet operates its
network across North America each business night, using a fleet of all-cargo aircraft consisting of
5 Boeing 767-300ER, 5 Boeing 767-200ER, 5 Boeing 757-200ER and 9 Boeing 727-AF aircraft.
Under the Domestic Air Cargo Network Services contract announced last year, Cargojet and Canada
Post signed a Master Services Agreement for an initial seven-year term with three thirty-six month
renewal options. Projected revenues are estimated to be approximately Ca$1 billion dollars during
the initial seven-year agreement based on projected volumes.
No-one at Canada Post or Purolator was available to comment at the time of writing, although
commenting on the original contract agreement, Purolator said Cargojet’s extensive air network,
combined with Purolator’s extensive ground network would enable Purolator to continue to enhance
and expand its service offerings for customers while assuring its market competitiveness in the
long term.
“At the heart of all our decisions at Purolator is delivering on our promises to our customers,”
the company said. “We are confident that this new partnership will be instrumental in helping us
meet this commitment as we continue to evolve and grow.”
Also commenting on the award of the original contract, Canada Post said: “Canada Post is
undergoing a major transformation as customer demand shifts from mail to parcel delivery with
online shopping. This move will drive operational efficiencies, lower our transportation costs and
help ensure our parcel delivery remains competitive from a cost and reliability perspective.”
Owned by Canada Post, Purolator is Canada’s leading integrated freight and parcel solutions
provider. Together, Canada Post, Purolator, and SCI Logistics offer end-to-end solutions for
e-commerce shippers by leveraging the assets and expertise of the Canada Post Group of
Companies.
