Titanium Transportation Group Inc. Withdraws from North Bay Operations

Titanium Transportation Group Inc. is starting to withdraw from its North Bay operations, with the building on Birchs Road now up for sale. The company’s Chief Operating Officer, Marilyn Daniel, confirmed that job losses have occurred in the area due to a strategic refocusing of the business, impacted by the challenging economic climate.

“We have been fortunate to operate with a great team of staff and drivers in North Bay since December 2015,” Daniel stated in an email to BayToday. Despite some losses, she noted that a small portion of the business remains operational, and some staff and drivers have been retained.

Impact on Local Transportation Companies

In parallel news, another transportation company, Thunder Bay-based McKevitt Trucking Ltd., has also ceased operations. The family-owned enterprise shut down its terminals across various locations, including North Bay, Sudbury, Sault Ste. Marie, Timmins, and Mississauga at the end of October.

Titanium's Acquisition and Expansion

Titanium Transportation entered the North Bay market following its acquisition of ProNorth for $5.8 million in 2015. At that time, CEO Ted Daniel assured there would be no layoffs, emphasizing an intent to grow the business and expand its freight network. However, the company's focus has shifted dramatically post-pandemic, with an increasing emphasis on broader North American operations, particularly south of the border.

Since the acquisition of ProNorth, Titanium has continued expanding, acquiring multiple companies with U.S.-based logistical offices in states such as Illinois, Florida, and Tennessee. Today, Titanium boasts a significant fleet, including approximately 900 power units, 3,000 trailers, and 1,300 employees and independent owner-operators. The company provides a comprehensive suite of services, including truckload, dedicated, and cross-border trucking.

Interestingly, Titanium’s expansion strategy is evident in its acquisition history, having completed 13 transactions since 2011, with its most notable purchase being Crane Transport in 2023, marking its first entry into the U.S. trucking market.

Financial Terms of the ProNorth Acquisition

Under the original terms of the 2015 agreement, Titanium purchased ProNorth's stock and associated real estate for a total of $8.3 million. This included a combination of cash and stock, alongside a vendor-take-back financing agreement, signaling Titanium's commitment to growth in the North Bay region at that time.

What Lies Ahead for North Bay?

The exit of Titanium Transportation from North Bay raises questions about the future of the local economy and the employment landscape. As the market continues to shift, both employees and other local businesses will feel the repercussions of such corporate decisions. What’s next for North Bay? Only time will tell as the community adapts to these changes in the transportation sector.