BM2 Freight Services Inc., a company that provides strategic transportation solutions and services, will expand operations in Covington, Kentucky. The $2.3 million project is expected to create 56 jobs.

The company currently leases the entire 5th floor in Tower One of the Rivercenter Building. BM2 will lease another half-floor in the same tower, increasing its operational space by almost 8,000-square-feet for a total of over 24,000-square-feet. The investment will include demolition and construction on the new floor.

“BM2 is pursuing aggressive growth goals by providing strategic transportation solutions and services to our customers in North America,” said BM2 President Sarah Newman. “Our priorities are service, communication and integrity. We’re thrilled to be expanding our headquarters and adding new jobs in Covington. We appreciate the support we have received from Kentucky, the City of Covington and Northern Kentucky Tri-ED.”

To encourage investment and job growth in the community, the Kentucky Economic Development Finance Authority (KEDFA) preliminarily approved a 10-year incentive agreement with the company under the Kentucky Business Investment program. The performance-based agreement can provide up to $600,000 in tax incentives based on the company’s investment of nearly $2.3 million and annual targets of creation and maintenance of 56 Kentucky-resident, full-time jobs across 10 years, and paying an average hourly wage of $28.61 including benefits across those jobs.

By meeting its annual targets over the agreement term, the company can be eligible to keep a portion of the new tax revenue it generates. The company may claim eligible incentives against its income tax liability and/or wage assessments.

“Our distribution and logistics sector are seeing continued strong growth,” noted Governor Andy Beshear. “It is no surprise that given Kentucky’s unique location and resources, companies continue to choose the commonwealth to meet the demands of a growing consumer base. I am thrilled that BM2 Freight Services will expand its operations here in Kentucky and want to thank the company’s leadership for believing in what this great state has to offer. I am looking forward to their continued success.”

In addition, BM2 Freight Services can receive resources from Kentucky’s workforce service providers. These include no-cost recruitment and job placement services, reduced-cost customized training and job-training incentives.

“Given our proximity to more than half of the consumers in the United States within a day’s drive, and the number of manufacturers we have in the Cincinnati region, logistics management is a high-growth industry,” added Northern Kentucky Tri-ED CEO Lee Crume. “We applaud BM2’s decision to expand in Covington and add new, high-paying jobs in Northern Kentucky.”

Founded in 2008, BM2 Freight Services is a family-owned and -operated third-party logistics company that provides strategic transportation services to customers throughout North America by connecting them with a network of over 30,000 dependable carriers. The company currently employs 130 people throughout its three locations in Illinois, Tennessee and Covington.