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Cargo Connection Logistics Corp. to Offer Financial Assistance for Cargo Connection Logistics Holding`s Newly Established Independent Transport Group, LLC (ITG) Through its Factor, Accord Financial, Inc.
November 18, 2005 11:15:01 (ET)
INWOOD, N.Y., Nov 18, 2005 (BUSINESS WIRE) -- Cargo Connection Logistics Holding, Inc. (CRGO, Trade) today announced it has entered into an agreement with its subsidiary, Cargo Connection Logistics, Corp., to provide financial support for its newly established Independent Transport Group, LLC (ITG) subsidiary. Accord Financial, Inc., Cargo Connection Logistics Corp's, current factor, has agreed the arrangement can fall into Cargo's current credit facility.
ITG was formed by Cargo to attract independent contractors and other carriers to perform work on behalf of Cargo Connection Logistics Corp. and Mid-Coast Management, Inc. The primary goal of the new division is to assist the Company in increasing the size and scope of its driver fleet.
Accord Financial, Inc., a wholly-owned subsidiary of Accord Financial Corp., has been providing asset based financing and factoring services for more than 25 years. Last year more than 500 client companies used the Accord family's services for a total financing volume of approximately $1.43 billion. For the past two years Accord Financial has been providing working capital for Cargo Connection Logistics Corp.
"The services that Cargo will offer to our ITG participants are one of the critical elements required for the success of this revolutionary new concept," said Jesse Dobrinsky, president of Cargo. "Cargo Connection Logistics will provide all of the back office services and the cash flow to allow these agents to operate.
"We believe the creation of ITG is an innovative approach to creating an affinity and long-term relationship with the independent contractors and marks a brand new day in the non-asset based transportation business," said Dobrinsky. "For too long the independent agents, who are the life blood of our industry, have been ignored by the major players. We recognize how important it is to our ultimate success that we have the ability to attract and retain drivers. We believe we are taking a leadership role in establishing this concept as the first company to offer agents comprehensive packages for medical, profit sharing and other benefits. We're confident this will start a trend in the industry that will have to be addressed by our competitors once these independent agents start to migrate to our Company."
"We truly value our relationship with Cargo Connection," said Matthew Panosian, credit manager of Accord Financial. "We're pleased that our financing will enable it to take this innovative approach to the industry."
ITG will be headed up by a team of seasoned executives with more than 40 years of combined experience in the professional employer organization industry, including Ivan Dobrin who has more than 20 years of experience in the field. This team will allow ITG to create a culture and benefit structure that encourages independent drivers (owner operators) to enroll in the program. This in turn will provide Cargo Connection with a supply of drivers and additionally give these drivers a reason to maintain their relationship with one company in an environment where drivers are scarce.
"Currently there is no incentive for independent drivers to stay with one company," added Dobrinsky. "Hopefully, this new program will give them the incentive, the reason and the desire to join our team, which in turn, could vastly expand our fleet."
Cargo Connection Logistics Holding, Inc. consists of Cargo Connection Logistics Corp. and Mid-Coast Management, Inc., which are both headquartered in Inwood, NY. The Company also has offices in Atlanta, Charlotte, Chicago, Columbus, Miami, New York and Pittsburgh. The companies provide a comprehensive variety of transportation and warehouse capacity services to shippers throughout the nation. Currently the two companies have a total of 90 employees.
About Cargo Connection Logistics Corp. / Mid-Coast Management, Inc.
Cargo Connection Logistics Corp. is a leader in world trade logistics. Headquartered adjacent to JFK International Airport, the company is a transportation logistics provider for shipments importing into and exporting out of the United States, especially through the Gateways of Chicago, Illinois; JFK, New York; Miami, Florida or Atlanta, Georgia, with service areas throughout the Unites States and North America. Mid-Coast Management, Inc. has container freight stations specifically designed to handle internationally arriving freight for the major retail suppliers through its CFS facilities in Florida, Georgia, Illinois, New York and Ohio. Since its inception, Mid-Coast Management, Inc. has developed relationships with many retailers and also works with Freight Forwarders from around the world.
Additional information about Cargo Connection can be obtained at its website http://www.cargocon.com
The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for forward-looking statements. Certain of the statements contained herein, which are not historical facts, are forward-looking statements with respect to events, the occurrence of which involve risks and uncertainties. These forward-looking statements may be impacted, either positively or negatively, by various factors. Information concerning potential factors that could affect the Company is detailed from time to time in the Company's reports filed with the Securities and Exchange Commission.
SOURCE: Cargo Connection Logistics Holding, Inc.
For Cargo Connection Logistics Holding, Inc., Inwood Peter Nasca, 305-937-1711 pnasca*pnapr.com Copyright Business Wire 2005
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