LOGISTEC, the Montreal-based company acquired by Blue Wolf Capital Partners LLC and the investment firm Stonepeak two years ago, is assertively upgrading its bulk, breakbulk, container handling and logistical services throughout its North American network of 62 ports and 85 terminals.
“A lot of work is being done to integrate the various, often diverse operations of a 73-year-old company into one fully integrated IT infrastructure,” confirms Sean Pierce, who was made the new CEO in January 2024. “Anyone who knows me also knows I prioritize technology to gain efficiencies.”
LOGISTEC’s rebranding of its Baltimore terminal in September under its own name followed the type of improvements being progressively made. The company had been operating BalTerm since 1990, but competitive disadvantages emerged after the Francis Scott Key Bridge was destroyed by a rogue vessel in late March 2024. “Overnight, customers had to switch their business elsewhere, and some of them stayed with other terminal operators,” Pierce recalls. “BalTerm had been handling pulp and paper shipments for decades, but we realized that we could do better in terms of updating equipment, improving safety processes, and upgrading our technology and customer services.”
A full evaluation of the operations was launched by shifting key personnel. “Technology alone never solves problems,” Pierce emphasizes. “You have to do a thorough analysis to identify the processes that must be changed for improvements.”
The Baltimore facility was lagging in terms of truck movement. “We instituted an appointment system along with self-serve kiosks where drivers could quickly access the information they need to get on their way and return without delays,” Pierce explains. “Properly matching our technology with this booking process has easily increased our capacity at terminals by upwards of 30%.”
Across the board, the company prioritized the implementation of an inventory control system last year. “All our facilities that should have our terminal operating / inventory control system now do,” Pierce confirms. “We’re also in the process of providing handheld devices and/or tablets so our employees have immediate access to the information they require to locate and move shipments.”
Productivity has already improved with the portable technology. “At our Brownsville facility, for example, crane operations are 20% to 25% more efficient,” Pierce notes.
None of this has been easy, particularly with cargo as diverse as pulp, rebar and automobiles at the various terminals. “Oftentimes, the implementation of new technologies fails because there isn’t the high-level commitment to its success nor the necessary follow-up to see if it’s working as it should,” Pierce says. “So we have a strong project management team in place and all our projects – large to small – are in system where we can pay attention to how everything is working and identify what needs to be fixed or improved.”
LOGISTEC’s technology implementation among employees prioritizes explaining why something is being done in a new way. “I’ve actually worked on the front lines as a forklift operator, so I know that if someone instructs me to regularly scan things, I want to know what happens after I do so,” Pierce shares. “We need to make it clear why a new process is being introduced and its overall advantages.”
The same goes for the new ZenDesk software that is steadily being implemented at terminals as a platform that customers are encouraged to directly access for information on their shipments. “There’s a dashboard that relates a lot of immediate shipping information,” Pierce says. “And if there’s an issue, there’s a ticket system that results in our team quickly resolving any problem, usually with one touch.”
Pierce acknowledges some past resistance by customers who prefer to just send an email, but ZenDesk is winning them over with prompter service. “It’s also more efficient for our staff compared to a constant influx of emails that can be distracting, even overwhelming,” he says.
LOGISTEC has invested in a robust sales and marketing team under its new ownership, along with new technologies to support it. “We have some of the best people in the business now, and they’re rolling out a pricing system by the end of this year that will allow us to provide customer quotes a lot more quickly using AI technology,” Pierce says.
Significant investments are likewise being made in terminals deemed to have a busy future, such as the Care Terminal in Houston. “We try out a lot of our new technology there because the facility handles diverse cargo, so it serves as a good testing ground,” Pierce says. “Once we see how it works in Houston, we can make any necessary adjustments.”
An example is the company’s recent launch of a system to record claims and determine their root causes through AI analysis so that possible improvements can be discussed with customers. “We’re also testing out proximity sensors that will help equipment to situate where it is in relation to people and other objects,” Pierce adds.
By increasingly having all the company’s assets in system, LOGISTEC is optimizing its resources. “If we see a piece of equipment isn’t getting a lot of use at one location, for example, we can move it to a busier location,” Pierce notes. “We’re also keeping much better tabs on equipment maintenance requirements.”
Having AI and other technologies to feed information directly into automated processes is eliminating the need to manually fill out reports that can often result in duplicated efforts. “They’re instead receiving the information they need and can focus on operations or sales rather than doing paperwork for a couple of hours a day,” Pierce says.
Such extensive implementation of technologies usually takes a company years, but LOGISTEC is pushing ahead at a robust pace. “We’re compressing our timeline considerably and finding solutions to hurdles along the way,” Pierce says. “It’s a lot of work, but everyone is delivering and we’re seeing the results.”
All this has been made a greater challenge by shifting political winds, but it hasn’t slowed resolve. “Our team is emerging battle-hardened from this year’s extensive tariff disruption but what’s exciting is that we’re now in growth mode with our focus on moving into Latin America, Mexico and new locations along the Canadian and US West Coast,” Pierce shares. “We’re building on our concentration of terminals from the Arctic down into the Gulf in a strong position to both integrate new companies, terminals, as well as forming new joint ventures in some cases with longstanding customers.”
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