For
Immediate Release
May
21, 2003, Toronto, Canada -
Purolator Courier Ltd., of Mississauga,
and PBB Global Logistics Inc., of Fort
Erie, Ontario announced today that
they are entering into a joint venture
to create a new company which will
provide Purolator clients with highly
secure, fully compliant reliable customs
brokerage services.
Purolator
is the first major Canadian-owned courier company
to add advanced customs clearance and trade
and regulatory services to its corporate offerings.
The
agreement, a renewable 10-year contract signed
today by both parties, was unanimously approved
by both companies’Boards of Directors.
The new company, named Purolator Trade Solutions
Ltd. (PTS), is expected to commence operations
by the end of this summer and will be held
jointly by Purolator and PBB, sharing all incremental
new business revenue equally.
PTS
will operate within existing corporate offices
and will be staffed by industry experts drawn
from both organizations. Purolator will direct
all its courier customs brokerage business
through the new company.
“Today’s
corporate customers are demanding one-stop
shopping when it comes to their transborder
shipments, and they’re demanding full
compliance and ease of movement,”said
Purolator President and CEO Robert Johnson. “Heightened
concerns about border security, combined with
these customer demands, made it clear to us
that creating this company with end-to-end
service made great business sense. This joint
venture allows PBB to continue to offer specific
customs, trade and regulatory capabilities
to Purolator’s existing, and future,
customers as well as the specialized expertise
they need to improve competitiveness,”added
Johnson.
“
While we will initially focus on customs brokerage
services, we will also move towards providing
PTS customers with single invoicing, an integrated
call center and an e-global command system to
give them access to all the information they
need, transparently,”said Mike Scott, President
and CEO, PBB Global Logistics.
“
Having worked with PBB for twenty years, we know
that it is a superb company with more than a
half century of proven knowledge, and an outstanding
reputation with both its clients and with customs
authorities due to its exemplary record of compliance
and error-free clearance. In our view, PBB’s
web-based technology and procedure systems are
unmatched in the business, resulting in one of
the highest compliance and clearance rates in
the industry. So it’s a win-win-win investment.
We’ll benefit; PBB will benefit and, above
all, our customers will benefit,”noted
Johnson.
While Purolator Trade Solutions Ltd. will operate
with a separate Board of Directors, there will
be no significant personnel changes in either
of two parent companies, beyond those employees
moving over to the new company.
“We
view today’s announcement as a key strategic
building block toward accomplishing our business
objectives,”said Johnson. “It strengthens
our leadership position as Canada’s major
entrant into the transborder courier business.
We are completely confident that this joint
venture will significantly strengthen the synergies
and business prospects of both organizations.”
“We
are extremely pleased to continue our long-standing
relationship of providing excellence in comprehensive
customs service to Purolator,”said Scott. “This
new company, and specifically formalizing our
relationship through the initial ten-year agreement,
immediately provides PBB with the stability
of a predictable, incremental revenue stream
without the need for initial capital investment.”
About
Purolator
As Canada's leading overnight courier company,
Purolator Courier Ltd. of Mississauga, Ontario
is committed to making shipping the easiest part
of the day for its customers. From automated
solutions to 24 hour pick up and delivery, Purolator
provides customers with the services and customized
solutions required to get their shipments across
town or around the world. Purolator operates
Canada's largest dedicated air express fleet.
Purolator has an extensive service network, with
over 13,000 employees, including more than 4,000
couriers, over 140 operations locations, over
170 Shipping Centres, over 490 Authorized Shipping
Agents and more than 480 drop boxes. Purolator
processes over 5.5 million pieces (delivery and
pick up) each week for destinations across Canada
and around the world. For more company information
please visit our website at www.purolator.com.
About
PBB
PBB Global Logistics is a leading provider of
third party international logistics services,
facilitating the movement of goods across North
America and around the world. Founded in 1946,
PBB has expanded its core Customs brokerage and
freight operations and now provides supply chain
solutions from the point of origin of goods to
the point of consumption. With approximately
900 employees in over 70 strategic locations
throughout North America and an established global
network of logistics service providers, PBB has
the technology, expertise, and infrastructure
to meet every supply chain need. PBB Global Logistics
is a wholly owned subsidiary of PBB Global Logistics
Income Fund with units trading on the Toronto
Stock Exchange under the symbol PBB.UN.
For
more information contact:
1-800-924-4466 ext. 3634
info@pbb.com
www.pbb.com
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