It can be hard for an independent business to get a foot in the door, but a new project from a Calgary-based transportation company is trying to help small trucking companies compete.
TruckMax, a new venture by Trimac Transportation Services, has set a goal to provide the benefits of big business to small grain-hauling companies.
“The challenge for small grain haulers is they often don’t have the capacity to take on larger contracts,” said project manager Jim Thomson.
For a fee, trucking companies registered with TruckMax will have greater access to suppliers and contracts. Thomson said the fee will be between $100-$200 per month per truck, depending on the services the company wishes to use.
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Thomson said TruckMax has three main purposes: improve profit, reduce costs to the grain haulers and generate more loads.
TruckMax has made several agreements with suppliers who will provide fuel, insurance, tires and other basic inputs to grain haulers for a reduced price. The estimated savings per truck could reach $750 per month, according to the company’s information manual.
As well, grain haulers may choose to have their accounting operations done by the TruckMax office. A central billing facility will process accounts, collect from shippers and take care of other administrative needs. TruckMax will not be involved in setting rates or negotiating loads with shippers.
The company can also act as an information service by making haulers aware of contracts as they come in. As well, if a company cannot accept a load because of limited equipment, manpower or time, TruckMax will dispatch a suitable truck and give the grain hauler a percentage of the profit.
Thomson said TruckMax is not designed to compete with small companies, but to provide a service that can help them remain independent and enjoy big-business benefits.
“A lot of these companies take a lot of pride in being their own business,” he said.
“It’s really a strength in numbers argument.”
Thomson said grain companies and farmers will also benefit from the service.
“These days, a lot more grain is being moved by truck,” he said.
“At the end of the day, getting more loads out is good for the company.”
He said farmers will see improved customer service, because all companies registered with TruckMax will have to adhere to a set of performance standards.
The company’s pilot phase is set to begin Oct. 1. So far, nine Alberta companies with a total of 50 trucks have signed on. TruckMax is prepared to take up to 100 trucks.
The length of the pilot program has not been confirmed, but Thomson said the results will determine what direction TruckMax’s future takes.
Wendell Hannah, president of Gra-Nae Holdings Ltd. in Acme, Alta., brought his trucking company on board in August. The company’s 10 trucks haul fertilizer and grain, mainly across the Canadian-American border.
Hannah said he decided to try TruckMax to save money and bring in more work. Business is slow during the summer months, and Hannah said he hopes TruckMax will help fill the gaps.
“We want to see if they can fulfill some more work for us, and we were also looking at cost-savings on fuel and possibly tires,” he said.
Hannah said he is still negotiating with the company, and has not decided if he will take advantage of services such as centralized billing.
TruckMax is meeting with several hauling companies in Alberta, Saskatchewan and Manitoba in hopes of bringing them on board.
“This is a prairie-wide issue,” Thomson said.
“We need a viable trucking industry. It’s good for everyone involved.”
