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Dicom continues U.S. last mile expansion

MONTREAL: April 05, 2016. Dicom Transportation Group, a provider of expedited transport and logistics services, is to launch a Canada/U.S. cross border ground parcel service in mid-2016.

The new service will link Ontario and Quebec with 12 U.S. states from Maine to Virginia. The company said other Canadian provinces would be served via existing Dicom partners.

The move follows a string of acquisitions last year by Dicom and private equity company Wind Point Partners based in Chicago. Wind Point acquired Dicom in February 2014 with former RoadRunner president Scott Dobak as CEO.

DICOMIn June 2015 Dicom purchased Orbis Logistics for final mile distribution in the Southeast and Midwest U.S.; the following month it bought Los Angeles-based Extra Express for final mile delivery on the West Coast; in September it added Rhode Island-based parcel delivery company Eastern Connection to its portfolio; in October the company acquired Modern Forwarding based in Windsor, Ontario to boost its Customs clearance and U.S.-Canada cross-border business; and in February this year it bought Advanced Distribution with extensive cross‐dock facilities and dedicated truck fleet to provide final mile delivery throughout the U.S. Mid-West.

Konrad Salaber, a principal at Wind Point noted: "Advanced represents our largest add‐on acquisition to date and significantly expands Dicom's scope of service. With more than 50 facilities, 2,500 dedicated delivery providers, and well over C$400 million in annual sales, Dicom is emerging as one of North America's leading transportation and logistics companies."

Commenting on the impending Canada/U.S. transborder operation, Dicom chief commercial officer Ken Nadler added: "The new service will create efficiencies and value for cross border shippers in need of fast and reliable ground parcel transportation. As part of the Dicom standard service, we will reach points in two days that other carriers view as a more expensive upgrade."

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