June 25, 2019

Purolator to open $330 million automated hub in Toronto in 2021

Facility is part of $1 billion strategy to handle rising volumes and e-commerce growth.

By DC Velocity Staff

Canadian parcel delivery and logistics company Purolator Inc. will invest more than $1 billion through a five-year plan designed to help it handle rising parcel volumes and e-commerce growth, the company said today.

The centerpiece of the plan is a $330 million, 430,000-square foot national hub set on 60 acres in Toronto, that is set to open in 2021. The facility will use automation to triple the capacity of Purolator's network, provide flexibility for growth, and offer the scalability to optimize customer delivery during peak volume periods.

Additional investments will include:

  • employee training, learning, and development to support the company's trend of 20 percent workforce growth over the past three years, resulting in 2,500 new jobs
  • fleet upgrades that will add more than 1,000 new vehicles with advanced technology in 2019 and 2020, including the company's first wave of fully electric vehicles in 2020 to complement its hybrid electric fleet
  • adding consumer access points across Canada to enhance its retail network, with upgrades to high-traffic stores in large urban centers, expansion of its Mobile Quick Stop service, and pilots of last-mile pick-up and delivery options for greater consumer flexibility

Taken together, the effort is intended to "future-proof" the company as it evolves to cope with the rapidly changing expectations of businesses, consumers, and employees, Purolator President and CEO John Ferguson said in a release.

"Purolator has experienced record growth over the past three years. We picked up and delivered over one-quarter of a billion packages in 2018 and we expect our growth trajectory to continue," Ferguson said. "We have consistently evolved over our 60 years to stay one step ahead of change and this investment will solidify our position to deliver the future for generations to come."

Toronto-based Purolator said that dynamic market shifts driven by e-commerce and technology have changed the way businesses and consumers buy, sell, and exchange goods in recent years. Both consumers and businesses increasingly want their packages faster with more visibility, control, and flexibility throughout the supply chain. And that trend is only set to continue as e-commerce sales are expected to reach $4.88 trillion worldwide by 2021, the company said.

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