Vitran Express will close terminals in four Western states as it shifts assets and resources to focus on its core regional less-than-truckload business in the eastern U.S., the company said yesterday.
The $700 million LTL carrier will serve California, Nevada and Arizona through an interline agreement with a “prominent West Coast carrier,” the Toronto-based company said in a statement.
Another unnamed carrier will handle shipments for Vitran Express in Colorado, the company said. The restructuring affects seven terminals and is expected to save Vitran $3 million a year.
The interline agreements and closure of the Western terminals are the latest steps in a plan to restructure Vitran's U.S. network, tighten its focus on LTL freight and return the company to profitability.
“This partnership will allow our management team to focus on service, productivity and growth in our principal regions in the U.S.,” said Chris Keylon, president of Vitran Express in the U.S.
The company, which operates separate U.S. and Canadian LTL divisions, said 85 percent of its U.S. density is concentrated in a region stretching from the Great Plains to the mid-Atlantic coast.
At the end of last year, Vitran operated 107 facilities in the U.S., with 3,424 loading doors, and 23 facilities in Canada with 591 doors, according to the company's 2012 annual report.
In the first quarter, Vitran reported a $17.6 million loss from continuing operations on $161.1 million in revenue, with LTL operations posting a $14.5 million loss. Shipments dropped 13 percent.
Vitran sold its supply chain business in March to Legacy Supply Chain for $97 million, which gave the company a $67.7 million net profit for the first quarter.