Amazon, Walmart, Total Quality Logistics, JB Hunt, Stevens Transport, Coyote Logistics, XPO Logistics - this is a non-exhaustive list of companies with which WFT Logistics Inc, headed by Georgian businessman Niko Purtseladze, is collaborating. US-based Georgian businessman tells BM.ge that he founded the motor carrier company in 2016 in Dallas, Texas. Today, the company has a turnover of $ 2.4 million and moves freight worth $ 390 million across the US each year.
"At the moment, WFT Logistics Inc. employs 31 people, including Georgians," - says Niko Purtseladze and shares the story of starting the business in America.
"I started this business with a friend of mine, on a loan. We only had the minimum amount of funds, needed to obtain licenses. The first years turned out to be exceedingly difficult since we did not have a credit history, which is an especially important factor in the US; I was an ordinary immigrant. However, before immigrating to the US, I have worked at the US Embassy in Georgia for 18 years, therefore, I was well acquainted with American law and culture, which helped me a lot. As for the start-up procedures, starting a business here is easy, especially in Texas - in fact, you just need to fill out an application online and in few weeks, you will get a license to move the products that you have requested,” said Niko Purtseladze.
While sharing his American experience with bm.ge, the businessman also emphasizes the importance of reputation and trust for doing business in the US.
"The transportation business, like others, has its own specifics in the United States. According to the transportation regulations imposed by the Federal Motor Carrier Safety Administration (FMCSA), the carrier company must meet safety standards. Each year, the company is responsible for paying the pollution and road damage tax. It must also have insurance that covers the cost of cargo, ranging from $ 100,000 to $ 1 million. In addition, the Department of Transportation (DOT) strictly controls the transportation companies on the roads, whether it is the weight of the cargo, the distance traveled, or the licenses. Like any other American company, WFT Logistics Inc. meets the imposed requirements and obligations but no less important is the credibility of the company, which in Texas, and not only – is evaluated by the special safety points. Federal Motor Carrier Safety Administration (FMCSA) has awarded WFT Logistics Inc. with 98 points, which means that I own one of the most trusted top safety rated companies America; This automatically leads to good relationships with partners", tells the businessman.
As for the impact of COVID-19 on WFT Logistics Inc, which owns several dozen trucks and trailers, Niko Purtseladze says that the demand for shipping products has especially increased during the pandemic.
"Amazon offered us an exclusive cooperation - only shipping their cargo, but in order to expand the company, we preferred to maintain and develop a working relationship with various big companies, which yielded quite significant results," - said Niko Purtseladze. Adding to that, during the pandemic his business made a 300% profit, which to some extent was also facilitated by bank benefits.
"The banks themselves approached us with an offer to defer the three-month loan. If I had to pay $1,500 per truck for three months, we would not have to pay a single dime. With the right calculations, we reinvested the released funds and contributed them to the development and expansion of the company. Everything in America is about credit history, both for individuals and businesses. You may not have the initial amount of funds for the business, but with a good credit history everything is possible - Obedience to the law, honesty, and hard work are the prerequisites for the realization of the American Dream, " - US-based businessman tells bm.ge
