Purolator Courier (Canada) Eyes U.S. Market

“Purolator Courier Ltd., the dominant Canadian overnight courier company, is setting its sights on becoming a much bigger player in the United States, says president and chief executive officer Robert Johnson. Purolator, almost entirely owned by Canada Post, is in the process of plotting a growth strategy that would carry it far beyond its current $50-million in annual U.S. revenue, Mr. Johnson says. By pursuing niche businesses in the U.S. market, it will avoid butting heads directly with archrivals United Parcel Service of America Inc. and FedEx Corp., which have often complained about the role of Canada Post, a Crown corporation, in the courier business in Canada. While the two competitors will be marginally affected by his U.S. strategy, Mr. Johnson says ‘it’s such a big marketplace, and if we had 2 to 3 per cent, it would not be noticeable to them, but noticeable to us.’ The plan in the United States, as in Canada, is to become more active in value-added, consultative roles with clients, rather than depending on the standard transactional relationship played by courier companies. Purolator already operates a subsidiary in 15 states that consolidates business shipments into Canada. Mr. Johnson says the initial goal is to boost this cross-border effort — it plans to add truck service as well as air – but ultimately branch out into other services. The ultimate aim is also to develop a network of associate companies south of the border, says Mr. Johnson.”