b'CARON TRANSPORT|BRUNO MULLERCaron Transportation SystemsMay you live in interesting times is thoughtare only limited by lack of available drivers.Caron USA started the year on very brisk pace to be a Chinese curse that certainly applies toOur Caron Canada business into the US is aand was headed to have one of its best years what all of us have experienced over the pastmajor opportunity for growth. Backed by oursince the first year we started out in the US. 20 months and most definitely applies to usknowledge of the industry and our captiveUnfortunately, the business model of our here at Caron Transportation Systems.insurance program we are set up to capitalizelargest customer in North Dakota changed Things have been interesting to say theon more cross-border business opportunities.over to using an app to dispatch its loads. least. The slowdown in the oil and gas sectorCaron purchased property in Leduc in 2021We are currently providing services within across Western Canada has continuedto move the Leduc operation from thethis new business model using the app and right through 2021, although, with recentleased property we assumed as part of theare assessing the long-term feasibility of increases in the price of oil and gas we mayClean Harbors acquisition.Our new terminalcontinuing to provide service.start to see some increased activity in 2022.building is being built with an emphasis onFinally, we are pleased to announce a new The decrease in revenues as a direct resultgreen construction. Our overall footprintaddition to the Caron group of companies, of the Covid-19 pandemic began easingof the new terminal building is significantlyReliance Ventures Inc. Caron acquired 79.8% as the year progressed, but a new set ofsmaller than our existing one, resulting inof the shares of Reliance Ventures Inc. on issues arose with vaccines becoming readilyreduced energy consumption. As well, theApril 1, 2021. Reliance Ventures is an oil and available and how to manage your employeesentire roof of the terminal will be covered ingas service company located in Ft. St. John, through the vaccination requirements thatsolar panels and tied into the electrical gridBC specializing in pressure truck services, Caron and many of our customers are nowwhere we will be able to sell unused electricitychemical transport and delivery, and tank fluid implementing. We are beginning to see manyback to the supplier. hauling. Acquiring Reliance opens access to of our customers requiring mandatory proofnew markets for both Caron and Reliance and of vaccination of drivers prior to entering theirInterload Services Ltd had one of its bestfurther solidifies Carons expanding presence work site. That will certainly be a challengebottom-line years in a long time. An increase for us to work through in the upcoming yearin year-round work along with strongerin the oil and gas service market.as drivers as a demographic currently haveutilization of company tractors were major a lower-than-average vaccination rate. Thefactors in this positive result.driver shortage issue continues to be ourKen Johnson Trucking Ltd. saw its revenues largest roadblock to increasing revenuesincrease significantly over the prior year and and coupled with mandatory vaccines wewhat was forecasted for 2021. Net income did are going to have our work cut out for us.not increase at the same pace due to supply Another issue Im sure were all experiencingchain costs increasing along with additionalBRUNO MULLERis supply chain disruption. Its becoming quitestaffing levels in the shop and wash bay. serious in the transportation industry withBoth Caron Canada and Ken Johnson will lack of available replacement parts. Werebe pursuing substantial rate increases in the making alternative plans for aftermarket parts,upcoming year to offset the cost increases25,000,000 kilometres something we typically havent used in ourboth companies have been faced with. Manycoveredfleets in the past. of the rate increases for Caron Canada and Ken 12,500,000 litres of fuel On the bright side, there are manyJohnson have already been approved and areconsumedopportunities for growth in Caron Canada thatin the process of implementation. PIC GROUP 2021 ANNUAL PROFILE 15'