Celebrating 40 years of leading service to Canada's North!

Delivering for decades

A History of Mid-Arctic Transportation Co. Ltd

Ray and Lloyd Anderson, sibling co-owners of Matco Transportation Systems, know Canada's North. In fact, the name Matco comes from Mid-Arctic Transportation Co. Ltd. as their firm was called when it was incorporated in Norman Wells, NWT, in 1966 to meet the growing need for transport in the Mackenzie River Valley. For the past 40 years, Matco has provided a vital link to the "south" for businesses, government departments and families located in communities throughout the Northwest Territories and Yukon.

Matco characterized by steady growth and expansion

"When we initially went to Norman Wells," says Ray Anderson, "we weren't there very long before we saw an urgent need for a local cartage and expediting company to handle the goods coming in by air. So we started one. When the oil industry began moving north, we expanded with it and soon had branches in both Norman Wells and Inuvik. In the early '70s we established a hub in Edmonton but continued expanding in the North as road construction permitted. We soon opened branches in Yellowknife, Hay River, Fort Smith and Whitehorse. Calgary was added to the network in 1996."

Today, Matco is a fully integrated transportation services company, providing freight and courier services, airport ground handling services as well as warehousing and related transportation expediting services throughout the western provinces, Yukon and the NWT. Through its affiliation with United Van Lines, Matco also offers household goods removal services including short and long-term storage at government-approved warehouses.

"One of the things we've learned over the years," observes Anderson, "is the importance of establishing ourselves as a diversified moving company. Few moving firms survive without a broad focus and that's the approach we've taken. We even do international moving through our Matco International division. We also do a significant amount of "high value" moving - transporting brand name electronic equipment and furniture. We are additionally prepared to move machinery and offer the kind of expertise needed for office and facility relocation."

Matco's service enhanced by current technology

"We've come quite some distance as a company since the early days of hauling mail and air freight with one truck in Norman Wells," reflects Ray Anderson. "Our current fleet shows the diversification and stability that we've worked hard to establish."

Fifteen tractors, twenty-five trailers, more than 150 containers and over fifty local vans are now necessary to enable Matco to meet daily demands. Add to this over 75,000 square feet of warehouse space and the more than one hundred employees needed to staff the various branches and you begin to gain an appreciation for the complex logistics involved in running the company.

Place this in the context of the geographical area that Matco covers - more than one-third of Canada's land mass with a scattered population of around 150,000. And when you stop to consider that much of Matco's work takes place in the extremely cold temperatures of the North, it is not difficult to see why a company that has become a $20 million business employing approximately 250 people depends so heavily on modern technology to keep running smoothly.

"There is really no way to compare how we run the business today with the way things were when we first started," comments Anderson. "One of the strengths of this company is that we learned how to hang in there as a service provider during the bad times in the North, and there have been plenty of those. But those tough times served to develop a strength of character in this firm that continues to serve us well. And, of course, our job has been greatly assisted by the advances of modern technology."

Good communication with customers and shippers is something that Matco Transportation highly values. "In this era of satellite communications," says Ray, "each of our units has a satellite tracking phone so that both shippers and receivers can be notified immediately if there is going to be any significant delay or problems with the transportation of goods. Even though I myself don't carry a cell phone, it's essential for the guys on the job to be able to stay in touch so that there are no surprises for customers. One of the reasons for Matco's success is that we have been careful to maintain our presence through the utilization of technology."

The importance of transportation containers for the North

One of the features of Matco's service that has been essential to the company's success in dealing with the rigors of hauling goods to and in the North is containerization.

Lloyd Anderson says that Matco, which is the fourth largest carrier for United Van Lines Canada, first started utilizing containers back in the 1970s. "In our ground support services, we initially found that containers were very efficient in transporting goods by rail," he explains. "Marine transportation (barge traffic) also demanded their use and as more and more roads were opened in the North, we found they were highly efficient for our units as well. When we affiliated with United Van Lines, the use of containers became essential in transporting the goods of several different customers on the same load."

A variety of containers sit in the Matco yard at the Edmonton headquarters. They offer flexibility in load size, increased security and contribute to less handling which speeds up the transportation process. "There are now about 200 different containers available for household goods," Lloyd adds.

Ray Anderson, who has been been a director with United Van Lines since 1995, points out that Matco has been instrumental in working with airlines in developing containers for use in transporting and handling air freight. "We participated in the development of an igloo-shaped container that is frequently used for air freight," he notes. "In fact, some carriers insist that goods be shipped in those containers."

Matco is not resting on past accomplishments

Although Matco Transportation Systems has been a pioneer in the transportation industry in Canada's North, the Anderson brothers are quick to affirm that they are not approaching the future content to merely rest on past accomplishments.

"We are continually making strategic decisions to secure our role in the industry," clarifies Ray. "For example, our decision to open a branch in Calgary reflects our awareness that Calgary is the hub of the oil and gas industry that is taking off again in the North. We wanted to be there to benefit from that reality plus the transportation connections that Calgary has with the North - that move was designed to ultimately increase our sphere of influence."

"Something that we've been focusing on recently," he continues, "is the importance of extending our market strength through alliances and signed agreements with other carriers in the industry. For example, we've just done that with Grimshaw Trucking and Mullen Transportation. By aligning ourselves with their terminals and facilities, it opens up opportunities for us to further diversify and strengthen our market mix."

"We'll utilize aspects of Grimshaw's billing system, for example," Anderson explains. "We'll be a participating carrier on the Yellowknife lane where they are strong. We're stronger in the Whitehorse-Inuvik lane, so we'll combine our strengths for mutual benefit. We're finding that, when possible, clients prefer to deal with one carrier for the duration of a transportation transaction, so by aligning ourselves with Grimshaw and others, we're preparing ourselves for the future in that regard."

Anderson goes on to say that Matco is also busy shoring up agreements that it has with various manufacturers for shipping their products to the North. "We've recently extended an agreement with Xerox to exclusively transport their products to the NWT and Yukon," he notes. "To facilitate such agreements, Matco will not only haul, but also install and set-up that kind of equipment. We're committed to doing more than just hauling the product there - we'll do what a company like Xerox would do in any place where it has an outlet."

Matco's commitment to Canada's North is paying off

In light of the current re-interest in the oil and gas opportunities in Canada's North, Lloyd and Ray Anderson are excited about how they've positioned Matco to take advantage of the associated opportunities.

"We've seen both the boom and the bust in the North," Ray grins, "and we've learned the importance of establishing stability by expanding south where business is more routine. "In this business, you can't hang your hat on just one pole, but at the same time you can't be so diversified that you fail to specialize. Back in the mid-'90s, nobody was looking to the North - they were all talking about the Orient and southeast Asia. The only people talking about the North were diamond hunters and most people thought they were crazy."

"Today, we're so happy we didn't abandon the North," Anderson triumphs. "Fort Liard is hot and things are really starting to roll in gas and oil south of Inuvik. As the opportunities come along, we can honestly tell people that we've been here for 40 years through thick and thin. We know the North and the challenges of transporting goods in and out - we've proven ourselves here and there are a host of satisfied customers who can attest to that fact."

As seen in the Alberta Report, 2001, by Tim Callaway