$2.4 million Turnover and 31 Employees; Niko Purtseladze’s Texas-based Freight Company
Amazon, Walmart, Total Quality Logistics, JB Hunt, Stevens Transport, Coyote Logistics, XPO Logistics – this is an incomplete list of the companies with which WFT Logistics Inc freight company cooperates.
The company is led by Georgian businessman Niko Purtseladze, who founded the freight forwarder in the US State of Texas in 2016, the city of Dallas. Today, the company’s turnover is $2.4 million, and every year it handles products of $390 million within the USA.
‘At this stage, the company employs 31 persons, including Georgians. I launched this business by a loan, together with my friends. We had a small amount that sufficed for only licenses. The first years turned out very difficult because we did not have a credit history, while this is an important factor in the USA. I was an ordinary emigrant, however, earlier I had worked at the USA Embassy in Georgia for 18 years.
Consequently, I knew the USA laws and culture very well and this factor helped me much. As for business establishment, this is a very simple procedure in the USA, especially in Texas. You just fill out an online application and in several weeks you get a license for transporting the products that you have applied for”, Niko Purtseladze said. Reputation and confidence are essential factors in the USA, Niko Purtseladze noted. “Transportation business comprises peculiar aspects in the USA.
Namely, under regulations determined by the Federal Motor Carrier Safety Administration, a freight company must satisfy safety standards. Every year, the company is responsible to pay pollution and road damage costs and the amount ranges from $100,000 to $ 1 million.
At the same time, the Transport Department executes strict control over freight companies, including over cargo weight, distance, or licenses. WFT Logistics Inc has also to satisfy the mentioned regulations. At the same time, creditworthiness is also very important and this aspect is assessed by special rating scores – WFT Logistics Inc holds 98 scores (FMCSA (Federal Motor Carrier Safety Administration) - high safety rating) and this signifies that our company has one of the best ratings in the USA”, Niko Purtseladze said.
As for the pandemic’s effect on WFT Logistics inc that owns several tens of trailers, the demand for freight services has more increased amid the pandemic, he said. “Amazon offered exclusive cooperation to transport only their cargoes, but we gave preference to maintaining and developing cooperation in various companies and this decision has brought essential results” Niko Purtseladze pointed out and added that his company’s profits rose by 300% amid the pandemic, including thanks to bank preferences.
“Commercial banks offered us a 3-month grace period. Before the pandemic, we had to pay $1,500 per truck, but for the 3-month grace period, we have not paid even one Cent. Thanks to proper calculations, we managed to reinvest the free money in developing and expanding business. In the USA, credit history matters everything for both individuals and corporate bodies. You may not hold a starting capital, but the good credit history will enable you to do everything – law obedience and honesty, hardworking are key preconditions for American Dream”, the USA-based Georgian businessmen concluded.