A.M. Executive Briefing - June 21
This Morning's Headlines:
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Freightliner Expected to Take Over Western Star
Rumors are flying that Western Star Trucks Holdings may consider accepting a $300 million buyout offer from an American competitor.The company's shares rose 24% June 20 despite the identity of the bidder's unknown status – industry sources believe it is Oregon-based Freightliner.
ffort to help develop an industrial park in Kelowna, Canada. The move was much maligned by liberal opposition leaders, who, at the time, said the financial aid constituted an inappropriate government subsidy to a business.
The company has had some difficulties of late as a result of the slow North American market for big trucks. Vancouver Sun (06/21/00) P. D1; Chow, Wyng
Two Florida Men Indicted in Licenses Scandal
Former truck-driving instructors and third-party CDL examiners Hilary Marek Winniczek and Tony A. Puleo were charged Tuesday with giving passing marks to over 1,000 applicants in exchange for payoffs.The two men worked for REACT, a Tampa, Fla., truck-driving school, authorities said. According to the indictment, which was issued in Chicago, the applicants were for the most part unqualified and many did not even drive a truck during the test.
In addition, according to federal officials, the two men passed applicants from Eastern Europe and Russia who were unable to speak English; interpreters are allowed in Florida examinations.
Drivers would swap the Florida CDLs for CDLs from other states, according to the indictment. Daily Southtown Online (06/21/00); Robinson, Mike
Highway Safety Advocates Oppose New Hours Proposal
Highway safety advocates Daphne Izer and Joan Claybrook have added their voices to the opposition to the proposed hours-of-service rules, saying the proposal would increase the amount of time per day that truckers can drive. The plan would create more risk for motorists by increasing the number of fatigued drivers on the roadways.The proposal has also been criticized by American Trucking Associations President Walter McCormick, who said it "could mean a 50% increase in the number of refrigerated and dry van trucks on our already crowded highways." It would also push the present state-of-the-art delivery system "back into 'old economy' inefficiencies," McCormick said.
Transportation Secretary Rodney Slater has received letters from 14 senators concerned about the proposal. At a press conference the advocates held Tuesday, Sen. Max Cleland (R-Ga.) said his home state is one of the top five for truck traffic, with particular danger around Atlanta, while Sen. Barbara Boxer (D-Calif.) said increasing the amount of legal driving time is "moving in the wrong direction." Atlanta Journal-Constitution (06/21/00) P. 12A; Dart, Bob
United Shipping & Technology Launches Velocity Express
After several months of consolidation and reorganization, United Shipping & Technology today announced the launch of Velocity Express, creating the largest same-day delivery service in the United States. Veolcity Express also provides logistics and back-end delivery solutions to Internet firms through its e-commerce division. The firm boasts an extensive infrastructure of more than 200 facilities, two air courier groups, and a fleet of nearly 10,000 vehicles.US&T acquired Corporate Express Delivery Systems in September 1999 for $60 million, turning the small Minneapolis, Minn.-based company into one of the largest delivery services in the world. Transport Topics staff
Cumberland Backs Bridge at Kettle Island
The Cumberland Council in Ottawa, Canada, is standing opposed to the construction of a bridge at Petrie Island that would join Highway 50 in Quebec with Highway 17, thereby removing truck traffic from the downtown area.The issue has more to do with where the bridge is being built than whether or not it should be built. The council, while it has several contingency plans, says it would prefer a new Ottawa River crossing at Kettle Island. Those in opposition to the Petrie route are calling for studies examining the environmental impact of a bridge on the island and the destination of truck traffic expected to use the bridge.
While the dispute carries on, the regional government says it will ban truck traffic across interprovincial bridges at night for a three-month period sometime this fall. Ottawa Citizen (06/21/00) P. C3; Mullington, Dave
Compiled by Transport Topics staff and INFORMATION, INC. © 2000
