SMG Industries, Inc., a growth-oriented transportation services company focused on the domestic infrastructure logistics market, announced that it has created a new wholly-owned subsidiary, 5J Transportation, LLC, in connection with its expansion of a recently leased 46-acre terminal facility located in east Houston, Texas.
The Company formed the new subsidiary to capture higher-frequency, recurring jobs compared to big heavy haul engineered projects that have longer sales cycles. 5J Transportation LLC now employs 38 new owner/operator drivers at its new terminal, increasing the driver pool by about 15%. Additionally, 5J has several new international customers enjoying storage and handling services provided at this facility.
Mr. Jeffrey Martini, CEO of SMG, stated, "The Company continues its plan of diversifying revenues with the expansion of this terminal and facility in east Houston, Texas. The size of this facility provides 5J with customer storage capacity and a strategic location for flatbed, oilfield, industrial and infrastructure projects. Additionally, we now have ready access to the high volumes of container ship traffic with our proximity to the Port of Houston. This location has allowed us to attract drivers which are in high industry demand and added growth from major new customers. The Company’s current monthly revenues at this facility illustrate an estimated $6 million in added annual revenues from this expansion.”
The Company currently anticipates announcing its preliminary revenue results for the second quarter ending June 30, 2021 on or before July 13th, 2021.