Toronto-based Vitran has switched from direct to interline service, signing an agreement with an undisclosed West Coast carrier to offer service to California, Arizona and Nevada.
Vitran has also contracted with a second carrier to service Colorado.
The changes, which go into effect Aug. 5, will force the closure of seven terminals and lead to an annual savings of $3 million.
"We are extremely pleased to be able to continue to provide service to our customers to the West Coast of the United States. Our customers can expect to receive consistent, reliable service to points in California, Nevada, Arizona and Colorado,” Chris Keylon, Vitran Express’ president, said in a statement. “This partnership will allow our management team to focus on service, productivity and growth in our principal regions in the U.S.”
In February, Vitran sold its Supply Chain operation to Legacy Supply Chain for $97 million. Some of the proceeds went to pay off the company’s outstanding debt.
Vitran experienced a first-quarter drop in consolidated revenues of 9.8 percent, year over year, to $161.1 million. Continuing operations showed a net loss of $17.6 million in the first quarter.
"We are very disappointed with Vitran's financial results,” the company’s William Deluce said at the time. “Vitran's board of directors is focused on the objective of enhancing shareholder value and is confident that such objective is aligned with the interests of all of Vitran's stakeholders." - Jon Ross