MISSISSAUGA, ON, Feb. 19, 2014 /CNW/ - Cargojet announced today they have been awarded the Domestic Air Cargo Network Services contract and have signed a Master Services Agreement with the Canada Post Group of Companies (CPGOC) for an initial seven-year (7) term with three (3) thirty-six month (36) renewal options. Projected revenues are estimated to be approximately one billion dollars during the initial seven-year agreement based on projected volumes.
Cargojet will provide comprehensive Canada-wide air cargo services for the Group of Companies, including Purolator's national air cargo network. Cargojet's domestic overnight network will be expanded and enhanced significantly to handle the additional volumes and provide a virtual dedicated Air Cargo Network to the Canada Post Group of Companies.
"Cargojet is extremely pleased to have been successfully chosen as the exclusive primary domestic air cargo service provider to the Canada Post Group of Companies. Cargojet operates an extensive overnight air cargo model, which will provide the most cost-effective and scalable solution to the Canada Post Group of Companies," said Ajay Virmani President and CEO of Cargojet. "Cargojet and the Canada Post Group of Companies will work together to provide Canadians with world-class and flexible air cargo services in today's changing business environment, " added Virmani.
"We are excited about the prospect of working with Cargojet. Their extensive air network, combined with Purolator's extensive ground network will enable us to continue to enhance and expand our service offerings for customers while assuring our market competitiveness in the long term," said Patrick Nangle President and CEO of Purolator. "At the heart of all our decisions at Purolator is delivering on our promises to our customers. We are confident that this new partnership will be instrumental in helping us meet this commitment as we continue to evolve and grow."
"Canada Post is undergoing a major transformation as customer demand shifts from mail to parcel delivery with online shopping," said Jacques Côté, Group President, Physical Delivery Network, Canada Post. "This move will drive operational efficiencies, lower our transportation costs and help ensure our parcel delivery remains competitive from a cost and reliability perspective."
Cargojet is Canada's leading provider of time sensitive overnight air cargo services and carry over 500,000 pounds of cargo each business night. Cargojet operates its network across North America each business night, utilizing a fleet of all-cargo aircraft. Cargojet recently signed an LOI with Air Canada to explore strategic opportunities in both cargo and airline operations within Canada and international markets. For more information, please visit: www.cargojet.com.
Ranked one of the top 25 brands among Canadian consumers since 2011, Purolator is Canada's leading integrated freight and parcel solutions provider. Celebrating over 50 years of delivering Canada on time, Purolator continues to expand its reach and renowned service levels and reliability to more people, more businesses and more places across the country and around the world. Purolator is proud of its Canadian heritage and is focused on sustainably positioning itself for future growth and success. Purolator is also committed to contributing to the well-being of the communities it serves and where more than 12,000 of its teammates live, work and play.
About Canada Post
Canada Post is the country's leading provider of electronic commerce and customer communication solutions. It reaches more than 15.3 million addresses, operates the country's largest retail network, and offers affordable and reliable service with convenient pickup and return options for online shoppers. Together, Canada Post, Purolator Inc. and SCI Logistics offer market-leading end-to-end solutions for e-commerce shippers by leveraging the assets and expertise of the Canada Post Group of Companies
Notice on Forward Looking Statements:
Certain statements contained herein constitute "forward-looking statements". Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as "plans," "intends," "anticipates," "should," "estimates," "expects," "believes," "indicates," "targeting," "suggests" and similar expressions. These forward-looking statements are based on current expectations and entail various risks and uncertainties. Reference should be made to the issuer's most recent Annual Information Form filed with the Canadian securities regulators, and its most recent Annual Consolidated Financial Statements and Quarterly Financial Statements and Notes thereto and related Management's Discussion and Analysis (MD&A), for a summary of major risks. Actual results may materially differ from expectations, if known and unknown risks or uncertainties affect our business, or if our estimates or assumptions prove inaccurate. The issuer assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason, other than as required by applicable securities laws. In the event the issuer does update any forward-looking statement, no inference should be made that the issuer will make additional updates with respect to that statement, related matters, or any other forward-looking statement.
SOURCE: Cargojet Inc.
For further information:
Vice President Marketing, Public & Government Relations
Tel: (905) 501 7373
Director, Corporate Communications
905 712-1084 ext. 23241
General Manager, Communications
Tel: (613) 734 4366