ETOBICOKE, Ont. (Feb. 15, 2005) — Two decades ago, facing the uncertainties of a deregulated industry, Serge Gagnon took over three-year old XTL Transport and transformed it into one of the largest for-hire carriers in the country.

In 1985 Gagnon was approached by Gilles Lefebvre about forming a new company. He accepted the challenge, acting as general manger before buying XTL in 1988 and assuming the role of president.

XTL — which is celebrating its 20th anniversary this month — now operates 485 power units, 1,300 trailers, and ranks as Canada’s 25 largest trucking companies. The company has two major terminals: One in Toronto, and a new flagship terminal in Vaudreuil, Que.

“I am filled with pride as I reflect over the past 20 years,” says Gagnon. “We have great people and many of our drivers and staff have been with us since the beginning.

Going forward, Gagnon says that convincing the shipping public to pay fair rates to cover rising driver pay is his biggest challenge as a fleet owner. “If you take a taxi you pay for the use of the driver’s car and the time — it is not the taxi driver’s fault if there are weather or traffic delays and this is all part of the cost of using a taxi,” he says. “The cost of operating a tractor far exceeds that of a taxi; the principle is the same and we (carriers) need to be compensated accordingly.”

A good start would be for carriers to simplify pay packages for drivers. “Today’s contacts and pay packages are complicated so drivers need to focus on total earnings not just the rate per mile,” he says.

Gagnon identifies the cross-border driver shortage and ever-changing hours of service rules as key issues to overcome if trucking companies like his are going to succeed for another 20 years. “Our industry is constantly changing; you need to be aware of the challenges and opportunities these changes will bring and you need to know in real time,” he says.