WOODBRIDGE, Ont. – Titanium Transportation Group provided an operational update regarding the acquisition of Muskoka Transport today.
The company acquired Muskoka back in March 2015. According to Titanium, its use of leading edge customized technology has allowed for the rapid integration of Muskoka and the extraction of significant cost savings. Titanium expects to more than double Muskoka’s 4% EBITDA margin to a run rate in the second half of 2015 in-line with Titanium’s existing truckload operations.
Titanium added that the following operational improvements allowed for the Muskoka integration: Modernized and integrated IT infrastructure including satellite and equipment monitoring, software customization and dispatch optimization; Outsourcing of maintenance facilities to Volvo effective June 1st, 2015; Increased revenue per mile due to improved utilization and customer synergies; Eliminating factoring costs effective August 1st, 2015 and reduced interest costs through Titanium’s access to low cost financing; Increasing sales with an existing Fortune 500 customer; Consolidating head office and regional offices; Replacing aging equipment including 30 trucks with new Volvo VNL 670’s and more than 30 flatbed trailers.