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

Even though China’s costs have risen and the U.S. has now surpassed Mexico as the preferred locale for relocating offshored manufacturing, advantages can be fleeting and the challenges great

Memphis-based FedEx reported solid fiscal second quarter earnings results today. Quarterly net income of $616 million was up 23 percent annually, and revenue, at $11.9 billion, was up 5 percent. Operating income at $1.01 billion was up 22 percent.

UPS said this week that it has added significant space to some of its North America-based distribution facilities, which the company increases the total size of its supply chain solutions network size by roughly 1.2 million square-feet. The company’s total global supply chain solutions network is comprised of 596 facilities and about 32.8 million square-feet. UPS offers various services at these facilities, including: warehousing and fulfillment inventory, transportation and returns management; custom kitting and packaging; and store-ready displays.

A week ago, the average price per gallon of diesel gasoline saw its steepest decline in more than two years, when it fell 7 cents to $3.535. This week took that decline a step further, with the Department of Energy’s Energy Information Administration (EIA) reporting that the average price this week fell 11.6 cents to $3.419 per gallon.

With an eye on further expansion of its e-commerce business and related reverse logistics processes, transportation and logistics bellwether FedEx last night announced it has inked an agreement to acquire Pittsburgh-based GENCO, a third-party logistics (3PL) services provider specializing in product lifecycle and reverse logistics.

Article Topics

News · LTL · Vitran Corporation · All topics

Comments

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


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA