Subscribe to our free, weekly email newsletter!


Vitran announces new U.S. West Coast interline partnership

By Jeff Berman, Group News Editor
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.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Last week, the United States Department of Transportation took further steps to address various issues identified in recent train accidents involving crude oil and ethanol shipped by rail. The announcement was made by DOT with other DOT agencies, including the Federal Railroad Administration (FRA) and the Pipeline and Hazardous Materials Safety Administration (PHMSA).

Logistics Management Group News Editor Jeff Berman had an opportunity to interview Derek Leathers, President and Chief Operating Officer of Werner Enterprises, at this month's NASSTRAC Shippers Conference and Transportation Expo in Orlando. They discussed various aspects of the truckload market, including prices, fuel, and regulations.

During this webcast our presenters will apply the findings of the 23rd Annual Trends & Issues in Transportation and Logistics Study to the world of shipper-carrier decision making. They'll examine the primary aspects that will influence the future direction for shipper-carrier decision-making.

For February, the month for which most recent data is available, the SCI dropped to -1.0 from January’s 2.6, with FTR explaining that the short term positive impact from one-time adjustments for rapidly dropping diesel prices and the suspension of the 2013 motor carriers hours-of-service expires later this year.

Seasonally-adjusted (SA) for-hire truck tonnage in March was up 1.1 percent on the heels of a revised 2.8 percent (from 3.1 percent) February decline, with the SA index at 133.5 (2000=100). This is off 0.3 percent from the all-time high for the SA of 135.8 from January 2015 and is up 5 percent annually.

Article Topics

News · LTL · Vitran Corporation · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA