Sunteck Transport Group and TTS Holdings recently merged to create what they say will be one of the largest multimodal, agent-based freight management service providers in the U.S.
We talked to Ken Forster, CEO of Sunteck, who will serve as the president and CEO of the new company, and Andy Cole, president and CEO of TTS, who will be chairman of the board, about the merger and how technology is changing the industry.
This interview has been lightly edited for length and clarity.
HDT: Could each of you tell me a little bit about your company, its strengths, and what made it unique prior to the merger?
Cole: We started TTS in the fall of 2005. A number of us had been through several iterations of companies that were based on the same premise as TTS: they were agent based. They did have some employee components which traditionally had created some conflicts, when you've got an agent base on one side and an employee base on the other. They're both out here pursuing revenue. At the last company that a number of us who started TTS were with, it just became very evident that there was an opportunity to create a pure agent-based model that were very few in the industry, especially in the 3PL non asset business.
We moved our first shipment in January of 2006 and did all the traditional non-asset modes, full truckload, dry van, refrigerated, flatbed, we did some high and wide stuff, and the reason for that is we had people who knew how to do those. We did intermodal, we did LTL, so we got off to a very fast start and our assumptions were correct. We did $126 million in our first year. The second year we did about $176 million, and it's just kind of grown from