Subscribe to our free, weekly email newsletter!


Vitran sells off truckload unit to Online Transport

By Jeff Berman, Group News Editor
December 01, 2010

Freight transportation and logistics services provider Vitran Corporation Inc. said it has sold selected assets of Frontier Transport Corporation, its owner-operator truckload operation, to Indianapolis-based Online Transport.

Company officials said Online Transport purchased 794 trailers, with Vitran retaining 174 of the newest trailers which will be redeployed in its less-than-truckload operation. They added that the proceeds and net working capital of this deal is roughly $5 million.

“For the last few years, Vitran has been focusing on its two core segments, LTL and Supply Chain Operations,” said Rick Gaetz, Vitran president and CEO, in a statement. “Frontier, our small owner-operator Truckload operation, took a back seat. Therefore, we are extremely pleased with this transaction as the majority of our associates will continue to serve our many valued Truckload customers, and our sole focus will be on our two core operations.”

Gaetz was unavailable for additional comments at press time.

Frontier will continue to be led by Steve Cook, its current president, at Online Transport.

Stifel Nicolaus analyst David Ross wrote in a research note that this sale is “positive and unsurprising, as Frontier was not a core strategic fit with Vitran’s other operations; the company has been looking to (opportunistically) sell it for some time.”

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

Spot market freight volumes for the month of August remained elevated compared to seasonal norms, according to data issued this week Portland, Oregon-based freight marketplace platform and information provider DAT.

Factors such as rising freight rates, shrinking capacity, an increased desire for global supply chain visibility, have all worked together to drive the need for instituting a culture of continuous improvement in logistics operations and transportation management systems (TMS). To meet today's complex logistics challenges, managers are stepping into a more streamlined, automated approach to transportation management in order to function at optimal levels both domestically and internationally. Read the latest special report.

The Atlanta-based company said that it plans to hire between 90,000-to-95,000 seasonal employees, up from about 85,000 last year, to support “the anticipated holiday surge” for package deliveries commencing in October and running through January.

The Memphis-based company reported today that quarterly net income of $606 million was up 24 percent annually, and revenue, at $11.7 billion, was up 6 percent. Operating income at $987 million was up 24 percent.

The World Shipping Council (WSC) released an update to its survey and estimate of containers lost at sea.

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