Fast Way Freight System Inc., a Spokane-based trucking company, has bought the freight-hauling assets of former competitor Spokane Transfer & Storage Co.

Financial terms of the transaction, which became effective Oct. 1, weren't disclosed.

Spokane Transfer, at 407 N. Perry, is a family-run business that has operated here since 1964. Since 1984, brothers Doug and Dave Ross have owned and managed the company, which will continue to operate storage facilities and services here.

Fast Way, which is located at 1001 N. Havana, hired about 40 of Spokane Transfer's 49 employees, adding to its prior staff of 39, says Mark Barnes, Fast Way's co-owner and vice president. Spokane Transfer expects to continue with a small core of its original work force.

"That essentially doubled our size," says Barnes, who has owned Fast Way with business partner and company President Jeff Bosma since 1993. "They (Spokane Transfer) agreed to sell their book of business, and the majority of their trucks."

He adds, "They ran about the same volume of business we did."

Fast Way expects the acquisition to roughly double its annual revenue to about $10 million, based on the combining of its $5 million to $6 million in annual revenue with Spokane Transfer's former annual revenue of about that same amount, Barnes says.

"We plan to grow," he adds. "We think combining our service is going to give us more synergy. We also do a lot of logistic support where we move freight on other people's trucks across North America. That will play into the growth."

Fast Way already had about 35 trucks in its inventory, and it bought about 30 of Spokane Transfer's trucks, Barnes says.

Both companies have had a primary focus on less-than-truckload hauling services, an industry term for delivering smaller loads regionally after receiving freight from around the U.S. via large shippers. Both primarily covered Eastern Washington and North Idaho. Fast Way also offers general freight, dry van, flatbed, and refrigerated trucking services to locations around the U.S.

For the storage side of its business, the Ross family will retain ownership of two properties here—a 4,000-square-foot facility with an almost 2-acre truck yard at the Perry address, and a 10,000-square-foot warehouse in the former McKinley Elementary School building, at 117 N. Napa.

Spokane Transfer also had leased a Lewiston, Idaho, warehouse, and Fast Way has assumed that lease, Barnes says.

He says the recession, the Rosses' approaching retirement, and the two companies' overlapping routes in several areas all contributed to Spokane Transfer's owners decision to sell the freight-hauling operation.

Dave Ross confirmed that those were among the reasons that factored into the decision.

His father, Dale, founded Spokane Transfer as a moving company. It later diversified to offer other trucking services, eventually focusing on the less-than-truckload sector. It also has offered warehousing services to its customers.

Ross says the business is considering future options and may move household goods again, but it won't get back into less-than-truckload and flatbed work, following the transaction with Fast Way.

"We were friendly competitors," Ross adds about Fast Way. "We found that neither one of us was developing new business, and we were running side by side, but each company was running with half a truckload."

Ross says he and his brother asked that the hiring of Spokane Transfer employees be part of the purchase negotiations. "Some of our people have been with us from the start," Ross says. "We're thrilled that our people can continue to work, and hopefully the economy will pick up."

Overall, Barnes says the purchase allows consolidation at a time when many trucking companies are struggling with rising costs, such as for diesel fuel prices, tires, updating trucks to meet emission standards, and insurance payments. He adds that trucking company rates have remained flat.

He says the purchase of Spokane Transfer's assets was attractive because of the overlapping service areas.

"This will allow us to run fewer trucks, have less waste," he says.

However, with a few extra routes that Spokane Transfer had to the west, it expands Fast Way's territory slightly.

"Now we're going to run clear to the Tri-Cities, Walla Walla, and Wenatchee, so we're expanding a little bit. They ran those points, and we ran some they didn't south of Lewiston down toward Orofino and Grangeville (in Idaho)," Barnes says.

He says Fast Way works with at least 10 trucking companies that turn freight over to it for regional hauling.

Fast Way operates from a large trucking depot it leases from the city of Spokane, Barnes says, adding that the city bought the property about two years ago to avoid potential access issues because of a planned Havana Street railroad overpass project.

The city and county have discussed using the property to build a future combined-services animal shelter there, but those plans are currently in flux.