MONTREAL -- TransForce has decided to close Transpel, one of the specialized truckload carriers under its corporate umbrella, todaystrucking.com has learned.

Transpel, which was acquired by the Quebec-based trucking giant four years ago, was mainly a container hauling and flat deck carrier. At the time of the purchase, Transpel (which also operated under the name Transport N.J.N.) was the sixth largest fleet in Quebec, with 250 tractors and 800 trailers and container chassis. It has since dwindled to about 40 drivers.

A number of factors explain TransForce's decision, Sylvain Desaulniers, vice-president of Human Resources, told us.

"The company was having trouble and last April, we made some changes to the direction and made some decisions to turnaround Transpel but it was impossible to do it," he says.

Desaulniers admits there were some wage issues -- somewhat similar to what TransForce's Highland Transport subsidiary experienced earlier this year -- but in the end it was the souring U.S. economy and difficulties in the container sector out of the Montreal port that took the largest toll.

Adds Johanne Dean, VP of Marketing and Communications: "Along the way, it is possible that some economic factors created some profitability issues. Like any corporation, we tried to correct the situation when something goes wrong, and we did it on many levels. Unfortunately, despite all the efforts made, it was just impossible to save Transpel."

Desaulniers said that every effort would be made to relocate Transpel’s employees to other TransForce divisions. However, the different union affiliations within the company's stable will make staff movement difficult for some drivers.

"We are doing everything we can to relocate Transpel’s clerical staff in other divisions and also the drivers through our personnel agencies, if possible. We will try to offer them some jobs," he says.

In August, TransForce truckload affiliate Highland survived a labor battle that threatened to shutter the fleet permanently. After months of negotiations with the Steelworkers union representing itsdrivers and two votes over a revised contract, the carrier was able to stay in business.