Ryder completes acquisition of two Canadian logistics firms
Transportation and supply chain firm Ryder System announced Tuesday that it has completed the acquisition of 'substantially all the assets' of Canadian firms Transpacific Container Terminal Ltd. and CRSA Logistics Ltd., including CRSA Logistics operations in Hong Kong and Shanghai, China.
The two Canadian firms, under a deal announced in early October, will now operate as Ryder Transpacific Container Terminal and Ryder CRSA Logistics.
Doug Stewart, president of TCTL and CRSA Logistics, and David Seath, Vice President of CRSA Logistics, will continue to lead the Canada-based and Asian operations as part of Ryder's Canadian management team.
Ryder, with corporate headquarters in Miami, expects the acquisition to add more than $20 million in annualized revenue to the firm's Supply Chain Solutions business unit.
'Consistent with Ryder's recently announced strategy, this acquisition will help bolster Ryder's geographic presence in Canada and Asia, while also adding quality retail customers and complementary solutions to our established portfolio of supply chain services,' said Ryder Chairman and CEO, Greg Swienton.
Based in Port Coquitlam, B.C., Transpacific Container Terminal Ltd. (TCTL) provides drayage, transloading, import deconsolidation, export consolidation, warehousing, intermodal, and other 3PL services in Canada. TCTL has facilities in Vancouver, Toronto and Montreal, and service relationships with the Canadian National and Canadian Pacific railroads.
Also based in Port Coquitlam, CRSA Logistics Ltd. provides end-to-end logistics visibility, program management and vendor coordination for the members of the Canadian Retail Shippers' Association.
The announcement comes less than a week after Ryder announced it would discontinue its Supply Chain Solutions operations in Brazil, Argentina and Chile and transition out of Supply Chain Solutions contracts in Europe. Ryder officials said the firm would now focus its Supply Chain Solutions operations on the North American and Asian markets. The strategy shift, according to Ryder, would result in the loss of 2,400 employees. The decision will also lead to the firm incurring $13 million to $15 million in employee-related costs and restructuring costs of $38 million to $45 million during the fourth quarter of 2008.
Ryder also announced last week that it was slashing 700 management positions, primarily in the U.S., as a result of 'deteriorating business levels.'
In addition, Ryder plans to temporarily layoff about 1,300 drivers and warehouse workers and about 125 salaried employees, also mainly in the United States. The layoffs are related to the recent downturn in the automotive industry, the company said.