Cleveland-headquartered ContainerPort Group (CPG) will sell its container yard and depot division to ITS ConGlobal (ITSC), the company said Tuesday.
The sale by CPG, a drayage trucking and logistics company, also entails transferring the container sales division and a rail lift operation in Indiana that connects to CN (NYSE: CNI) to ITSC. The transaction is expected to close March 15.
CPG says the sale is part of a wider focus implemented by parent company World Group to streamline CPG’s portfolio of service offerings.
“This sale allows ContainerPort Group to really focus on its core services: drayage trucking and logistics solutions,” World Group CEO Michael Smith said in a release. “This decision was not taken lightly. Our organization has been in the container depot business from the earliest days of containerization.
“The 90-plus CPG employees that are transitioning to ITS ConGlobal bring years of experience and knowledge, and we are grateful for their many years of service to CPG,” Smith said.
ITSC described the acquisition as an opportunity to provide a national network of container yard/depot solutions. Headquartered in the Chicago suburb of Darien, Illinois, ITSC has operations at over 120 facilities across the U.S., Mexico and Costa Rica, specializing in intermodal, finished vehicle and depot service terminals.
ITSC said it is acquiring operations in several Midwest locations that provide inland depot services to the international and domestic shipping center. The locations are Cincinnati, Cleveland and Columbus, Ohio; Detroit; Indianapolis; Louisville, Kentucky; and St. Louis.
“By adding to our existing portfolio, we can serve our customers better and with more complete solutions compared to what each of us could do on our own,” said ITSC Vice President of Sales and Marketing Marc Bumgarner. “Four of the acquired locations are adjacent to ITSC existing rail operations, allowing us to explore new technology and services, such as the remote operation of industrial and logistics equipment.”
Founded in 1971, CPG has 26 terminal locations and a fleet of more than 1,300 independent contractors.
FreightWaves reported in December that CPG had acquired end-to-end intermodal FSI Inc. in October 2020. Charlotte, North Carolina-based FSI, which operates container terminals in the Carolinas, transitioned to the CPG brand on Jan. 1.
The acquisition of the more than 25-year-old family-owned business will add incremental capacity to CPG’s Southeastern operations, FreightWaves reported in December.
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