Stephanie McDonald
Northern News Services
Wednesday, May 09, 2007

YELLOWKNIFE - One of the North's largest companies has grown again, buying a Yellowknife logistics company.

On Monday, NorTerra Inc. announced acquisition of Braden Burry Expediting (BBE). NorTerra's existing transportation companies, include Canadian North and Northern Transportation Company Limited.

The NorTerra group of companies: Canadian North Northern Transportation Company Limited Weldco-Beales Northern Metalic Sales Northern Industrial Sales

This is the second major purchase by NorTerra in recent weeks. In April, the company announced purchase of Northern Metalic Sales in the NWT and Yukon and Northern Industrial Sales in British Columbia.

Nunasi Corporation and Inuvialuit Development Corporation jointly own NorTerra.

NorTerra does limited logistics work right now, and the acquisition of BBE will fill that void.

Braden Burry has warehouses and other facilities in Yellowknife, Edmonton, Inuvik, Fort Simpson, Norman Wells and Baker Lake.

Schmidt said he sees growth in the logistics industry in the Canadian west and North.

"As long as there is a growth in industrial development in the North, there will be a growth in logistics," he said.

NorTerra is looking to expand wherever there is mine development. The company does not have any concrete expansion plans right now, but Schmidt sees opportunities in northern BC, northern Saskatchewan, and Nunavut.

"There are different areas in western Canada that are extremely busy and there are companies that are working in those areas that need the services BBE provides. NorTerra can certainly allow for that growth," said Gordon Stewart, president and chief executive officer of BBE.

Stewart sold the company as he said BBE needed to grow.

The two companies already had a close relationship, sharing the same clients, and several former NorTerra employees work for BBE.

"We all know each other fairly well, how we do business, our ethics level, and how we go forward on things," Schmidt said.

There are approximately 50 people currently employed with BBE, and Schmidt anticipates that number will increase.

"If there is more industrial developmentÖ depending on the size of development, over five years I could easily see the staffing level double." One mine could create that many positions, he said.

In addition, he said there will be training opportunities for NorTerra's beneficiaries.

"At the end of the day we believe it is profitable, so it brings profit back to them," Schmidt said.

NorTerra was approached by BBE four to five months ago. Neither Schmidt nor Stewart would disclose how much the deal was worth.

Stewart would only say that it was "a number that they were happy paying and a number we were happy receiving."

Stewart will be staying with the company for a couple of years as it makes its transition.