Drone Delivery Canada announces commercial agreements with DSV Canada and Edmonton Airport
Agreements establish delivery routes and infrastructure
Drone Delivery Canada Corp. (DDC) has signed commercial agreements with has with DSV Air & Sea Inc. Canada , the Canadian arm of the global transport and logistics company DSV Panalpina A/S and Edmonton Airport to start running routes delivering small packages through its drone technology.
Drones and DSV
DDC and DSV have agreed to begin running the first of multiple routes and deploy its DroneSpot takeoff and landing zones as well as additional drone flight infrastructure on DSV sites, and deploy its Sparrow cargo drone, with a capacity of up to 10lbs. The first route will occur on a defined flight route within DSV's site in Milton, Ontario.
Flights will be remotely monitored by DDC from its new commercial operations centre located in Vaughan, Ontario.
DDC will commence deployment of the client site infrastructure this quarter and looks to begin providing drone delivery services under the Agreement in Q1 of 2020, with the potential of 20 or more additional routes being added in 2020.
DSV will pay DDC a monthly fee for each drone route deployed. The initial term of the agreement is fifteen months with additional successive one-year terms to follow unless the Agreement is formally terminated.
"We are pleased to announce DSV Canada as another paid commercial drone logistics customer. DSV is a global leader in the logistics space and a perfect fit as a scalable customer for us," said Michael Zahra, President & CEO of DDC. "They will start using our proven Sparrow drone, patented FLYTE system, and newly launched commercial operations centre in early 2020. I am pleased to report we have a very strong funnel of global commercial opportunities and we expect to see continued sales announcements in 2019 for deployment in early 2020."
"DSV Canada is dedicated to delivering innovative and integrated supply chain solutions," said Martin Roos, Managing Director of DSV Air & Sea Canada. "With a global view in mind, our focus is on continuously optimizing our local partners' supply chains. That means, a long-term vision that opens up new markets and service offerings. Our strong partnership with Air Canada Cargo and now DDC will offer our current and potential partners best-in-class solutions and service excellence that is scalable and futureproof. We have looked to overcome some of today's challenges by investing in tomorrow's opportunities, and we are ready for the next steps."
Drone Delivery Canada’s airport deal
Edmonton Regional Airports Authority ("ERAA"), which operates Edmonton International Airport ("EIA") and Villeneuve Airport, has agreed to build routes from these airports with Drone Delivery Canada. DDC says it aims to establish the world's first airport drone delivery hub, at Edmonton International Airport using DDC's proprietary drone delivery platform.
DDC and ERAA will create flight routes from Edmonton using DDC's DroneSpot takeoff and landing zones. DDC hopes to market its delivery services in this controlled airspace for drone deliveries.
All operations will be conducted in accordance with the Canadian Aviation Regulations and Transport Canada flight authorizations and shall be subject to DDC obtaining all required regulatory approvals.
The initial term of the agreement is five years with additional successive one-year terms to follow unless the Agreement is formally terminated.
"With ERAA, we will develop a drone logistics network centered at this world-class airport as a hub for numerous drone routes for our customers. We will continue to work with ERAA and Transport Canada to define particular routes, and with ERAA and Air Canada to negotiate revenue metrics and other commercial terms, to be announced in future press releases. Given the potential size and scope of this disruptive offering, revenue outlook could be significant while concurrently bringing tremendous logistical benefits to the region", said Michael Zahra, President & CEO of DDC. "To all our stakeholders, I am pleased to report that we will be working closely with EIA to further our current expertise in operating at a major airport in controlled airspace to monetize similar opportunities globally."
"EIA is proud to partner with industry leader DDC to establish Canada's first airport drone delivery site and drastically modernize cargo logistics and supply chain solutions. Together with our long-standing partnership with Air Canada, we look forward to expanding DDC's network of customers at EIA's Airport City, the Edmonton Metropolitan Region, and other strategic partners. DDC's DroneSpot at EIA elevates intermodal connectivity to support the growing E-Commerce, Pharmaceuticals, Courier and Oil & Gas sectors. Thanks to our partners like NAV Canada and Transport Canada, our airport is leading in embracing innovation," said Myron Keehn, EIA VP of Air Service and Commercial Development.