Canadian  Railway  News
Public Relations and Advertising Department
Windsor Station Montreal Que. H3C 3E4
 

Volume 11   Number 15

Nov. 18, 1981


CP Rail Breaks New Ground with Honda Deal

By Paul Thurston


Glittering Hondas:  CP Rail has spent $250,000 on its Toronto car compound to help Honda Canada distribute its vehicles.

Toronto - CP Rail has spent $250,000 on improvements to its automobile compound here to help Honda Canada Inc. distribute cars to its Canadian dealers.
 
Under a new contract, CP Rail is moving Hondas from the west coast to a newly-paved part of the compound in the Toronto suburb of Scarborough, near the main city freight yard.
 
Imported automobiles account for about one quarter of new car sales in Canada, and Honda ships about 18,000 cars a year for distribution through Toronto.
 
"The large-scale Honda movement is new to CP Rail and gives us more opportunity to use equipment that would otherwise return empty from Western Canada", said John Kelsall, general manager of operation and maintenance for the Eastern Region.
 
Vehicles produced in central Canadian factories are carried west on specially-designed multi-level railway cars which are not suitable for other types of traffic, noted Bill Manion, automobile marketing director for CP Rail's Eastern Region.
 
"This contract represents a step in the right direction for overall railway capacity," said Mr. Manion.
 
During a recent visit to the compound with Honda Canada President Saichiro Fujie, the two railway officials inspected a newly-paved parking area which can accommodate more than 1,000 cars.
 
CP Rail crewmen Frank Anderson and Jack Laing had just finished positioning several carloads of 1982 Hondas at an unloading ramp, and preparations were underway to move the cargo onto the parking area.
 
LARGE CAPACITY
 
Grading of the entire 22-acre compound was carried out before asphalt was applied to 10 acres of parking lot and an access roadway. The area now used by Honda had been finished in stone chips.
 
"Paving makes it easier to move cars quickly and contributes to overall efficiency," said Mr. Manion. "Elimination of the stone chip surface also reduces the risk of damage".
 
Overall capacity of paved and unpaved portions of the compound is 3,500 vehicles.
 
Two other foreign manufacturers - Toyotoa and Mazda - have leased separate parts of the compound while some Toronto retail dealers use other areas for receiving and storage. CP Rail's agreement with Honda is not a lease but does guarantee the manufacturer space according to its needs.
 
With the Honda contract in force, the yearly through-put of the compound, located on Canadian pacific property, will increase by about 55 percent.
 
Actual unloading of incoming cars and the day-to-day supervision of the compound have been sub-contracted to Hansen's Forwarding, a company experienced in these fields. Unloading was previously carried out by individual manufacturers.

This CP Rail News article is copyright 1981 by Canadian Pacific Railway and is reprinted here with their permission. All photographs, logos, and trademarks are the property of the Canadian Pacific Railway Company.
 
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