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

Carload volumes were up 2.8 percent at 304,276, and intermodal volume for the week ending August 16 was up 5.4 percent at 270,316 containers and trailers.

Even though this data can be viewed as “old” in the sense that there is not a whole lot new to report about the port labor talks, it does a good job of looking into the mindset of shippers as talks continue.

Company officials said this service will be provided without any type of additional cost for customer shipments traveling from Ohio, Michigan, and Indiana, with expedited services available to customers outside of this area.

FTR says both spot rates and contract rates are heading up in a full capacity environment and with the fall shipping season rapidly approaching, it explained conditions for shippers could further deteriorate.

Read how others are using Business Process Management to achieve ERP success with Microsoft Dynamics AX. Download the free white paper now.

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