Zoukie rides to the top with Kir-Dex acquisition
Avia Collinder, Business Writer
Zoukie Trucking Services Limited officially signed off on the purchase of equipment and contracts from Kir-Dex Transportation Services Limited on Monday.
Both trucking companies are located portside at Newport West in Kingston, where they competed for container haulage and other transport services.
Now principals of Kir-Dex, Kirk Chin and Dexter Chin, have sold the business to Zoukie, giving the latter company an additional 30 per cent share of the haulage business.
It also makes Zoukie, which is owned by the Marzoucas, the largest trucking company, according to its owners. Zoukie's Managing Director Duane Marzouca said the acquisition grows his company's total market share to 30 per cent of the overall market.
"This is turnover day," said Marzouca on Monday, regarding the closing of the deal.
"We purchased all rolling assets such as trucks, (but not) properties. We have not bought the company, and so we have not assumed any liabilities," he said.
Marzouca said the deal's non-disclosure clause prevents him from citing the cost of the acquisition.
Kir-Dex Transportation, which was incorporated in 1995, operates from property it owns at 6 Second Street in Newport West. Calls to the office for comment were not returned up to press time.
Kir-Dex, on its Facebook page, notes that its rolling assets owned up to 2010 included 32 tractor heads, along with 300 chassis, flatbeds and lowboys or trailers of various tonnage. The company's vehicles are outfitted with GPS for tracking and ensuring the safety of cargo.
Zoukie says on its website that the acquired assets is inclusive of all trucks, trailers, and aerial equipment.
"As of January 21, 2013, Zoukie will assume the representation to all the clients of Kir-Dex and assume the duties and services to its existing customers. Zoukie has not purchased the company of Kir-Dex Transportation Services Limited, and issues concerning claims, accounts receivables and payables must be directed to the offices of Kir-Dex Transportation Services Ltd," Zoukie said.
Increase of haulage movements
Marzouca told Wednesday Business that Zoukie is now honouring all of Kir-Dex's existing contracts, as a result of which the number of haulage movements will increase by about 30 per cent.
The impact on revenue, he said, is difficult to calculate as Zoukie is still paying for the acquired assets - the deal calls for monthly payments to Kir-Dex for 24 months - and Kir-Dex's contracts are priced differently from Zoukie's.
"We have a lot of assets to pay for. It's not 30 per cent more revenue," he said.
Zoukie Trucking was started 26 years ago by John Marzouca who added forklifts, warehousing, equipment supplies for construction and other industries, ships supplies and a maintenance division to create a vertically integrated operation.
The company owns the property from which it operates at Third Street, Newport West as well as other property on Marcus Garvey Drive.
"We are definitely the largest provider of container haulage n Jamaica. By assets we are eight to 10 times larger than other competitor at this time," said Duane Marzouca.
The sector has about 40 operators.
"Now that we have acquired Kir-Dex it is hard to say who is below us next (in size)," he said.
"Anybody below us would be less than a quarter of our size."
The company offers container haulage, break bulk services, lifting with cranes, and provides construction equipment. Its leading business line is container haulage, followed by equipment supplies, Marzouca said.
For 2013, Zoukie is banking on pipeline projects in the energy sector getting off the ground, to create new business opportunity for its equipment supply division, he said.