PART2: Deep Dive on Environmental Segment of Logistec - TSE: LGT.B
In Part2 of this unfollowed family controlled company, I will do a deep dive on the environmental services segment and provide our key takeaways of both business
This following is the Part2 of the Deep Dive articles on Logistec. The article constitutes the authors’ personal views and is for entertainment purposes only. Please refer to the disclaimer at the end of this article for more details. In this article, we will go through:
The environment services business
Key takeaways after investigating both business (Marine and Environmental Services)
Please note that all figures in this article are in canadian dollars.
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Renewal of underground water mains - ALTRA Solutions
Sanexen has developed over the years, (in the turn of this century) a technology currently branded as ALTRA Solution, that extends the useful life of a water pipes by over 50 years while avoiding the traditional dig-and-replace method for pipe replacement. Since there is no open trench, vehicular and pedestrian traffic can move more freely throughout the project and it allows businesses to stay open. The basic approach is to insert inside the existing water pipe system a high performing flexible fluid transport line. These flexible fluid lines are an enhanced version of the Niedner fire hose used by firefighters. Niedner was bought by Logistec in 2009. The fully structural pipe lining technology is equivalent to a new pipe and is designed to extend the useful life of the pipe by an additional 50 years.
The approach is being slowly adopted by authorities in Canada and in USA, mostly in dense urban areas where digging trenches to replace the water mains would be very disruptive for the city (business and traffic impact). A short video of the ALTRA Solution is included here.
As shown below, revenue related to this sub-segment has seen a steady growth of 8% CAGR since 2017.