Det'on Cho Logistics (DCL) and Bradenbury Expediting (BBE) this month signed a strategic partnership that will see Det'on Cho provide logistics on behalf of BBE as of May 1.
DCL bought BBE's facilities and equipment and will move operations over to BBE's facility on McMillan Street, but the two companies will remain separate entities.
The number of contracts that Det'on Cho will be taking on, following its acquisition of G&G Expediting in 2018 and after the partnership with BBE takes effect, will make it the largest Indigenous-majority owned logistics company in Canada, according to Paul Gruner, CEO of Det'on Cho Corporation.
DCL is 51-per cent owned by Det'on Cho Corporation – the economic development arm of the Yellowknives Dene First Nation – and 49-per cent owned by the management team of Matt Mossman, Stu Impett and Rudolph Swanepoel.
Better serving the North
“This furthers our commitment to the North. I think it's neat. I think this will continue to be the future of the Indigenous business base,” said Gruner.
Mossman, president of DCL, explained that the idea for the partnership with BBE came about after his team examined the economics of the North.
“We looked at major competitors and realized that for better customer service we needed to join together to continue to be profitable and continue to be providing the best customer service we could embody to the community as well,” he said.
Among the facilities DCL has acquired under the agency agreement are a passenger terminal used for filtering travellers into Yellowknife to the different mines and a warehouse in Yellowknife for receiving, processing and moving freight from the south to remote locations in the North.
“We'll be able to streamline things for the clients and vendors. At the end of the day, we'll be able to make a more effective supply chain from the south into Yellowknife and to the final destinations,” Mossman said.
The new alliance and its added capacity will eventually create new jobs and more business opportunities, but Mossman said it's too early for estimates on the number or type of positions.
BBE president Heather Stewart said the agreement will combine the expertise from the two entities in a sustainable manner.
“This partnership changes the dynamics of our relationship with Det’on Cho from competitors to colleagues, which aligns perfectly with BBE’s core values. Our consolidated resources and expertise allows us to build a sustainable network of Northern logistics out of Yellowknife, while extending our global reach for years to come.”