Overview

A large-scale fuel distributor faced rising insurance exposure, escalating fleet costs, and growing workforce challenges. To address these pressures, KAG executed a Private Fleet Conversion (PFC), assuming responsibility for fleet assets, drivers, and operations. The result: a fully managed, scalable fuel transportation solution that allowed the distributor to refocus capital and leadership attention on its core business strategy. 

The Challenge

The customer operated a private fleet to support the majority of its fuel distribution needs. As volumes increased, the complexity and cost of fleet ownership became increasingly difficult to manage.

Key challenges included:

• Rising insurance costs and risk exposure
• Escalating equipment and maintenance expenses tied to fleet ownership
• Ongoing difficulty recruiting and retaining drivers, dispatchers, mechanics, and safety professionals
• Increased operational distraction from core priorities, including retail fuel sales, store operations, and wholesale fuel distribution

The customer needed a solution that would maintain service continuity while reducing risk, controlling costs, and enabling a sharper focus on long-term growth.

The Solution

KAG partnered with the customer to execute a comprehensive Private Fleet Conversion, transitioning a significant portion of the customer’s fuel transportation operations to KAG.

• 72 tractors and 92 trailers acquired, supplemented by existing KAG tractor assets
• 80 professional fuel drivers onboarded, supported by KAG’s established driver network
• Transportation operations transitioned across 26 customer locations

Prior to the conversion, KAG supported approximately 10% of the customer’s transportation volume during overflow demand. Following the PFC, KAG now manages roughly 70% of total transportation volume—delivering immediate scale, flexibility, and operational continuity.

Results & Ongoing Value  

The Private Fleet Conversion delivered measurable operational and strategic benefits, including:

• More efficient, scalable transportation operations
• Elimination of capital investment in privately owned tractors and trailers
• Reduced operational complexity and risk exposure
• Reallocation of capital toward core business growth initiatives
• Leadership focus redirected from fleet management to strategic execution

The KAG Advantage

KAG’s Private Fleet Conversion program enables companies to seamlessly transition away from owning and managing private fleets while improving efficiency and gaining access to scalable capacity. By trusting KAG to manage transportation operations, customers can focus on what matters most—driving growth, optimizing performance, and strengthening their core business.

Is Private Fleet Conversion Right for You?

If your organization is evaluating alternatives to private fleet ownership, we can help assess your current operation and design a customized Private Fleet Conversion strategy aligned with your business goals.