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Logistec (TSX: LGT.A) provides specialized marine and environmental services. Marine services include cargo handling and terminal operation, shipping services, and shipping agency services to the shipping community and industrial businesses. Through Logistec Stevedoring, a subsidiary of the company, Logistec provides bulk cargo, general cargo and container handling services as well as other specialist services at 53 ports and 79 terminals across North America and on the Gulf Coast of the United States (United States).
The company had an average of 2,715 employees, including 1,651 in Canada and 1,064 in the United States in 2020. Logistec’s revenues are generated 56% in Canada and 44% in the United States.
Value-added maritime transport services
Freight handling is the activity of loading and unloading ships as well as the loading and unloading of freight to and from a truck or train in the various facilities of Logistec. The company provides other related services such as warehousing, stuffing and unloading of containers and distribution. Logistec offers shipping services focused primarily on Arctic coastal trade through a company called Transport Nanuk.
In addition, Logistec is primarily active in the eastern Arctic during the summer and fall resupply season and operates five Canadian-flagged ice-class ships. Five of the company’s vessels participate in an international marine pool during the winter months, thereby generating income rather than incurring inactivity costs. The company also provides shipping agency services to foreign shipowners and operators serving the Canadian market through Logistec Marine Agencies.
A diversified range of services
The agent represents foreign shipowners and operators who do not have offices in Logistec’s territory. Services include obtaining services from pilots, coordinating various port calls, assisting with crew needs and other services provided on behalf of the owner or operator of the vessel in question.
New service markets
Recently, the company has also started providing environmental services to industries, governments and municipalities through Sanexen Environmental Services and Fer-Pal Construction. These services, provided primarily in Canada, include the renewal of underground water pipes, soil and material management, site remediation, risk assessment and the manufacture of woven hoses. Renewal services are provided either directly or through dealers.
Logistec is one of the largest stevedoring and terminal operators in Eastern Canada. Competition varies from port to port, as it operates terminals that mainly specialize in various niche dry cargoes. The company’s strategy is to diversify Logistec’s geographic network and freight mix, and the company seeks to maintain a balance between export and import activities. This has served him well and should allow him to maintain financial stability in a fluctuating and cyclical market.
Always profitable results
Continuous profitable results have been achieved since the company became a publicly traded company in 1969 through a customer service oriented approach, skilled employees, progressive labor relations and modern cargo handling techniques provided. through a network of strategically located facilities. Much of the company’s environmental activities are carried out in central and eastern Canada. The company is one of the top three providers of environmental services in the materials handling and freight market, and this should serve shareholders well in the long run.
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Foolish contributor Nikhil kumar has no position in any of the stocks mentioned.