TFI International Inc. is a Canadian transport and logistics company based in Saint-Laurent, Quebec, a borough of Montreal. It operates primarily in Canada, the United States, and Mexico through 4 business segments: less than truckload (LTL), package and courier, logistics, and truckload. It has Canada's largest LTL business, largest trucking fleet, and in 2021 was ranked 6th in terms of revenue among both LTL and truckload North American carriers. Its trucking fleet consists of over 14,000 company-owned power units, nearly 10,000 owner-operator tractors, nearly 50,000 trailers and over 200 straight trucks.
Since the mid 1990s, the company's main source of growth has been complete takeovers of smaller logistics companies (over 190 between 1996 and 2021) many of which continue operating as subsidiaries.
History
Foundation and early history
The company was founded by Reno and Réal Emond in 1957 as a regional trucking service in Cabano, Quebec. Cabano Transport expanded its operations mainly in Quebec and the Maritimes through a series of acquisitions. In 1985, Cabano Transport purchased D'Anjou Transport and changed its name to Groupe Cabano-d'Anjou.
In 1987, the company acquired Groupe Expéditex and changed its name to Cabano Expeditex Group Inc.. The same year, it also acquired Groupe Brazeau Inc. from La Verendrye Management Corp. for and Expeditex Inc. for . Cabano had reported a profit of in 1986 but both Brazeau and Expeditex had been unprofitable. The purchases increased Cabano's fleet from 700 to 5,000 vehicles making it the largest trucking company in Quebec and fourth-largest in Canada. Following the acquisitions, Cabano Expeditex focused on reducing debt shutting down 15 terminals by October 1987, had plans to shutter 4 more, and expected to reduce administrative staff at the new acquisitions by about 40% and unionized workers by about 10%.
Cabano Expeditex was forced to restructure its finances under pressure in 1988 and the next year reported losses of . By 1990, however, it was recovering and reported a profit of for the 1990 fiscal year. In July, it acquired the general freight operations of Clarke Transport Routier for . This deal added 610 rolling stock units and 300-400 employees to Cabano Expeditex's existing 2,100 employees and 3,200 vehicles. In December 1990 the company changed its name to Cabano Transportation Group.
In 1992, Cabano acquired Ontario-based Kingsway Transports Ltd. and its US operations from Kingsway's parent, Winnipeg-based Federal Industries Ltd. Following the purchase, Cabano changed its name to Cabano-Kingsway. The combined company operated 1,200 trucks, 3,400 trailers, and 63 service centers, and about 3,000 employees in eastern Canada and 19 northern US states. Cabano had been Canada's fourth largest trucking company but this deal meant it surpassed Reimer Express and TNT Canada to become the second largest after CP Express.
Strategy shift
In 1997, Cabano Kingsway made significant management changes focused on operational efficiency and cost reductions. The company had been severely impacted by a strike in 1996 resulting in an earnings deficit. One key focus of the new management team was to reduce risk by diversifying its service offerings. Early acquisitions, therefore, were primarily intended to increase efficiency and grow new markets and services.
By following their acquisitions strategy and divesting "non-core assets," the company subsequently experienced a significant increase in revenue with a much lower increase in expenses. In 1999, it changed its name to TransForce Inc.
In February 2000, TransForce acquired TST Solutions the parent of US and Canadian LTL carrier TST Overland Express. This purchase represented a significant increase to TransForce's presence in the US. Post acquisition, TST continued to operate as an independent subsidiary.
The company made major changes to its structure in 2002 when it converted itself into an income fund known as TransForce Income Fund.
Diversification and expansion
Also in 2002, TransForce acquired Brampton, Ontario-based parcel-delivery company Canpar Courier. Canpar provides domestic services directly and cross-border services via interline agreements with other carriers and had been established in 1976 as a division of Canadian Pacific Trucks. By the time of its acquisition, Canpar operated 53 terminals and 1,000 vehicles and had reported revenues of approximately $150 million in 2001.