1 Conquering worlds by thinking globally.

People, financial stability, information technology and full service offerings has ranked Manitoulin Transport 23 out of the top 100 Canadian carriers for 2005.

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With operating companies, third-party subcontractors and affiliated companies, Manitoulin has more than 1,750 skilled individuals working for them.

"A lot of people have been here for some time," says president and COO Gordon Smith.

The company's success depends upon the "great people" who work there, he says. Manitoulin is a profit-sharing company with a bonus system for management, which is tied to key performance indexes.

"We tend to pay our people well, relative to the market and that allows us to attract and retain good quality staff," Smith says.

Investing in the people and reinvesting in the company means Manitoulin has always shown a profit, ever since founder Doug Smith purchased Hills Transport in the 1960s, which was later changed to Manitoulin Transport.

The vision was to haul less-than-truckload (LTL) and truckload freight between Toronto and points on Manitoulin Island.

LTL refers to anything from post cards to skids of cookies, from automotive parts to supplies.

With over 2,000 trucks, tractors, tankers, flat beds tri-axle, four-axle and 53-foot three-axle decker vans, the fleet provides overnight service with one of the lowest insurance rates in the country.

Looking into the back of the decker van one would see a four-foot deep decker with the same width as the trailer. It nests against the trailer ceiling, but can be moved within two feet of the floor.

"As you're building LTL, you can picture pallets of products, including pieces of engines and everything you can imagine," Smith says.

A typical truck may have 35 shipments and because a lot of products cannot be piled on top of the other due to potential damage to products, shippers can stair-step the decks and build the load as they go.

"We get a better load factor with less claims," Smith says.

Any acquisitions the company has made are usually done with LTL in mind and with the intent to always expand the geographical footprint of the company.

In four decades, services have expanded to include most locations throughout northern Ontario and northwestern and southern Quebec. Direct service was offered to and from Edmonton and Calgary, Alta. through the purchase of Surrey, B.C.-based Pacific Northwest Carriers. In 2001, Manitoulin expanded its Western Canada coverage by partnering with Northwest Transport, which provides interior service to British Columbia, and beyond to the Northwest Territories, the Yukon and Nunavut. Today, Manitoulin Transport has 48 service centres from New Brunswick to British Columbia.

Doug and his sons Gordon and Jeff, vice-president of quality assurance, oversee the business operations along with 15 senior level officials who have gathered to develop a 10-year strategic plan, which is revised annually. Part of the strategy is to set targets for growth, plus establish new services to be offered. Since the strategy for Ontario and Quebec worked so well, part of the company's vision will be to replicate it in Western Canada by opening new offices for the company affiliates.

"There are other worlds to conquer for LTL, and you really have to think globally," Gordon says.

"We have a solid balance sheet and great financial stability to be able to go out and make acquisitions."

Manitoulin has a freight-forwarding company called Paltainer Forwarders that provides air and ocean service anywhere in the world. Their Multimodal Logistics Systems Ltd. warehousing company, Manitoulin Logistics, a freight brokerage division, and their Near North Custom Brokers offer customers full-service packages anywhere in North America.

With a brand new terminal being built this year in Calgary and the acquisition of a terminal in Vancouver, the company has its sights set on new developments in Edmonton. In fact, they are likely to have locations in Fort McMurray, northern Alberta and southeast British Columbia.

Manitoulin Transport likens itself to courier service companies. The courier industry tends to be 10 years ahead of the LTL carrier industry. Competing with guys like FedEx from an information technology (IT) standpoint is key, Gordon says. The company's website address is www.manitoulintransport.com

"We have full tracking services and I would argue, the best website and IT system in the industry today," Gordon says.

"There are no borders. We can move anything, anywhere with the capabilities we have."

QUICK FACTS

Company Name: Manitoulin Transport

City: Manitoulin Island

Founded: 1960s

COO: Gordon Smith

By KELLY LOUISEIZE

Northern Ontario Business