Ryder to buy Canadian import intermediary
Ryder System Inc. last week said it has agreed to purchase niche Canadian logistics service providers CRSA Logistics and Transpacific Container Terminal Ltd. for an undisclosed amount.
The deal is the Miami-based company's first since industry veteran John Williford took over its $3 billion Supply Chain Solutions unit in late June with a mandate to expand and integrate international offerings with the U.S. business.
CRSA Logistics and Transpacific Container Terminal are affiliated companies in Port Coquitlam, British Columbia, under the same ownership.
CRSA Logistics sole client is the Canadian Retail Shippers' Association for whom it provides consolidation, ocean booking and deconsolidation service. The association comprises eight members that pool their sourcing, logistics and information management efforts to increase purchasing power and lower costs. The small deal, which is expected to close in late November pending regulatory approvals, also includes CRSA's operations in Hong Kong and Shanghai.
Transpacific Container Terminal provides drayage, transloading, intermodal and deconsolidation services in Montreal, Toronto and Vancouver.
The move gives Ryder many of the capabilities of a freight forwarder even though the company has remained focus on contract logistics and transportation management to date.
Ryder plans to leverage the capabilities of the two companies to expand services to other clients beyond CRSA members and could use them as a vehicle to expand import service to the United States, Hernan Vera, marketing director for the supply chain management group, said Monday on the sidelines of the Council of Supply Chain Management Professionals conference in Denver.
Doug Stewart, president of Transpacific Container Terminal and CRSA Logistics, and David Seath, vice president of CRSA Logistics, will continue to manage the Canadian and Asian operations, Ryder said. ' Eric Kulisch