AG and Coast Oil Reach Private Fleet Agreement
NORTH CANTON, OH, September 22, 2009 – The Kenan Advantage Group, Inc. (“KAG”), North America’s largest bulk transportation and logistics provider to the petroleum and specialty products industries, today announced it has reached a private fleet conversion agreement with Coast Oil Company, LLC (“Coast Oil”). KAG will take over the company’s fuel delivery operations while continuing to provide exceptional dedicated services to Coast Oil’s more than 100 retail dealers in Northern California. KAG will also purchase Coast Oil’s private fleet that consists of six truck and trailer units. The agreement goes into effect October 1, 2009.
According to Mark Mitchell, Owner of Coast Oil, “We will always do whatever it takes to keep our customers supplied with product, and this partnership is just another way to solidify that promise. By aligning ourselves with KAG, we significantly enhance our economies of scale with access to over 5,000 drivers, 3,100 power units and numerous terminal facilities throughout California.”
Coast Oil, founded in 1935, is one of the largest marketers of petroleum products in Northern California with over 875,000 gallons of above-ground storage. The company also has 30,000 square feet of warehouse and office space. KAG will be leasing a portion of this space to better manage the newly acquired transportation operations.
“This is a tremendous opportunity for KAG as it opens the door to new business while providing us with additional assets to grow our operations in Northern California,” said John Jolly, KAG’s Vice President of Private Fleet Conversions. “We are also pleased to be partnering with a company that has such a great reputation in the marketplace. It’s a business relationship that should be extremely beneficial to both parties,” he continued.
Kenan Advantage Group operates nationwide through its subsidiaries: Advantage Tank Lines, BXI, KAG West, Kenan Transport, Klemm Tank Lines, North Canton Transfer, Petro-Chemical Transport and Transport Service Co. KAG’s fleet consists of more than 3,100 power units and 4,100 trailers. KAG also provides specialized supply chain logistics services through KAG Logistics and KAG Ethanol Logistics (www.kaglogistics.com). More information on Coast Oil is available at www.coastoil.com.