Titanium Transportation Group (TSX:TTR.VN) announced today that the Canadian trucking and logistics firm will open a U.S.-based brokerage and plans to expand further south of the border.
The brokerage will operate as Titanium American Logistics, with its first office to open in Charlotte, North Carolina. The company plans to open additional locations in the U.S. in the coming years.
“Our current business includes roughly two-thirds of our freight volumes originating with U.S.-based clients, so this is a natural progression and expansion for the company,” said CEO Ted Daniel. “We expect the operations to contribute positively to our organic earnings growth over the near-term and continue to build with the addition of future offices.”
The marks the first U.S-based operation for Titanium, which is based near Toronto. It operates a trucking business, with a fleet of 475 power units, and a brokerage that serves clients in Canada and the United States.
Titanium said it has recruited operations personnel with “considerable expertise” in the U.S. brokerage services and logistics industry.
“Over the past several years we have made purposeful investments in infrastructure, technology and staff to build a scalable business that supports opportunities such as this one with minimal added overhead,” Daniel said.
The company reported record fourth quarter and year-end financial results earlier in March. Revenue increased by 43 percent, while earnings before tax and other charges, increased from 55 percent in 2018.
Logistics represented about 40 percent of Titanium’s C$184.8 million in revenue in 2018. (A Canadian dollar currently is valued at US$0.75.)