Vitran announces new U.S. West Coast interline partnership
June 07, 2013
Toronto-based less-than-truckload (LTL) carrier and transportation services provider Vitran Corporation Inc. said this week that it has “entered into an interline agreement with a prominent West Coast carrier” to serve its customers to California, Arizona, and Nevada as well as a similar service with a second carrier to serve Colorado.
Company officials said that Vitran will continue to to focus on regional business within its core geographic footprint, a contiguous area stretching from the central Great Plains to the East coast, where the company maintains 85 percent of its current density. And they added that Vitran will reposition its assets and resources into its core markets, which will allow for improved service to current and new customers.
“We are extremely pleased to be able to continue to provide service to our customers to the West Coast of the United States,” said Vitran Express U.S. President Chris Keylon in a statement. “Our customers can expect to receive consistent, reliable service to points in California, Nevada, Arizona and Colorado. This partnership will allow our management team to focus on service, productivity and growth in our principal regions in the U.S.
Kelylon said that the change from direct to interline service, effective August 5, 2013, will result in the closure of seven terminals and have a positive annual financial impact of approximately $3.0 million.
Vitran’s U.S. LTL business represented approximately 72.4 percent of total LTL revenues for the year ended December 31, 2012, according to the company’s annual report.
In February, Vitran reported that full-year 2012 revenue rose 2.4 percent to $702.9 million, with fourth quarter 2012 revenue down 4.7 percent to $164.3 million. For the first quarter of this year, Vitran reported a 9.8 percent decrease in consolidated revenues to $161.1 million in the first quarter of 2013 compared to $178.6 million in the first quarter of 2012.
Earlier this year, Vitran signed an agreement to sell its Supply Chain Operation (SCO) 3PL business to Legacy Supply Chain for $97.0 million in cash proceeds, subject to working capital adjustments. Vitran said it intends to use a portion of the net proceeds from this transaction to fully reduce its outstanding debt under its senior revolving credit facility, and will have approximately $50.0 million of remaining cash on the balance sheet.
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