Posted Dec 2, 2014, 11:47 PM
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A hole being Doug
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Join Date: Dec 2013
Posts: 498
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Canada Post update
Selected excerpts from
Can a $200-million mail plant at YVR save Canada Post?
Jacob Parry | Dec 1, 2014 | BCBusiness
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This year, the always-busy holiday season is expected to be a lot more stressful—but potentially a lot more profitable—as Canada Post tries to reap the benefits of a $200-million investment in this new YVR distribution centre. The move is part of a $1.7-billion modernization program (which includes new automated plants in Montreal, Winnipeg and Toronto) that’s shifting the corporation’s focus away from letter mail and toward e-commerce parcel delivery.
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Last March, a second wave of postal workers relocated to the airport plant from Canada Post’s multi-storey Modernist complex in downtown Vancouver (a building that was sold, in January 2013, for $153 million). The 700,000-square-foot Pacific Processing Centre, with a tarmac for the carrier’s contracted fleet of Boeing 727s
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the holiday season is particularly lucrative, with three out of every five parcels delivered in the month of December. Deliver Tonight, a program piloted by Canada Post last holiday season in Toronto, was expected to be up and running by the end of October in Metro Vancouver. A selection of Canada Post’s top retail partners—which have yet to be announced—will be offering same-day delivery service as part of the program: order by noon, the package will be picked up by 2 p.m. and delivered that evening. Last year alone, revenue from those top e-commerce customers grew 29 per cent over the previous year.
One of those e-commerce customers is London Drugs
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In the Lower Mainland alone, the corporation expects to cut 500 from the 3,000 employees it currently has.
According to some workers, the move comes at the expense of the postal carrier’s traditional letter-carrying business. One employee who works on the floor of the Richmond plant, who asked for anonymity, reports that 25 trailers full of letter mail, largely from Japan, China and South Korea, currently sit waiting to be offloaded. “We used to process 32,000 letters an hour; now we process 5,000 to 10,000,” she says. Whereas a letter or parcel sent from Kelowna to Prince George would go directly, now all mail is routed through Vancouver, explains John Bail, national director at CUPW.
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Although Amazon announced a same-day delivery program recently, it seems Canada Post won't meet its goal of offering its version "Deliver Tonight" this year. The article also seems to support the idea the downtown distribution facility is still operating at significant volume. Has the BC pension fund which bought the property started giving off hints of its ambitions for a redevelopment yet?
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