REXTON, N.B. –Two of Atlantic Canada’s top trucking and transportation companies are merging their general freight and equipment repair facilities to form a new company, Atlantica Diversified Transportation Systems (ADTS).
Effective April 1, the general freight (dry van and refrigerated operations) and equipment repair facilities of Warren Transport, part of The Warren Group headquartered in Rexton, N.B., and the entire operations (flatbed, van and equipment repair) of D.D. Transport, headquartered in Mount Pearl, Nfld., will merge to form the new company.
ADTS’s head office will be based in Rexton, while maintaining their offices and operations in Mount Pearl and Clarenville, Nfld.; Bathurst, N.B.; and Debert and Liverpool, N.S.
Warren’s Vaughn Sturgeon will serve as Atlantica’s president, while D.D.’s Gordon Peddle will serve as vice-president and chief operating officer. The new entity will have about 150 employees.
Other divisions of The Warren Group -such as bulk transport and construction services -are not affected by the merger.
“The merger of our freight and equipment repair facilities means more efficient service for our customers, while our employees will have expanded career opportunities within the new company,” Sturgeon said.
“Atlantica is a growth-oriented company looking into the future and committed to the efficiencies of scale. The operations of Warren and D.D. that have merged complement each other and create a stronger company. Everyone will gain: our customers and our employees.”
“The merger of our freight businesses makes sense,” said Peddle, who also serves as the Atlantic Provinces Trucking Association’s immediate past chair. “Whereas D.D. Transport provided more regional coverage, Warren Transport provided more national and North American coverage, so Atlantica will benefit from better reach in a world where security restrictions are expanding every day. From an operations perspective, this merger will also allow us to eventually renew our fleet to more environmentally friendly vehicles that have zero emissions.”
ADTS will operate more than 300 pieces of equipment with officials expecting annual sales to be in the range of $25-30 million over the next year.
When including companies affiliated with Atlantica, the group will have sales in the $45-50 million range and operate more than 500 pieces of equipment, officials said. Atlantica will keep all of the affected merged Warren Transport and D.D. Transport facilities open. The merger will not result in any layoffs.
“This merger only makes us stronger and solidifies our future,” Peddle said.
“The merger of certain parts of our operations to form Atlantica is a strategic move that will benefit everyone,” Sturgeon added. •
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