A.M. Executive Briefing - June 22
This Morning's Headlines:
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Moyes Extends Deadline for Simon Transportation Stock Offer
PHOENIX – Jerry Moyes announced today that he is extending his tender offer for all outstanding shares of Class A and Class B common stock of Simon Transportation Services Inc. until 5:00 p.m., Eastern time, on Friday, June 30, 2000. Approximately 1.3 million shares had been tendered by the original deadline for $7.00 each. Moyes also said the consent solicitation also remains ongoing.Moyes is chairman of Phoenix-based truckload carrier Swift Transportation, but he is making his $39 million bid as a private investor. Transport Topics staff
Canamex Corridor Hopes Revived
The idea of the Canamex corridor from Alberta to Mexico is once more being considered after a lull in the past few years. Up until now, states' varying road allowance rules meant that it would be impossible for drivers to travel the entire distance unimpeded.According to Alberta Trucking Association President Jurgen Mantei, U.S. interest in Canamex has been revived because added federal road funding will allow the interstates to take heavier traffic. Association representatives discussed the corridor with Idaho Gov. Dick Kempthorne in May.
In addition, Nevada and Arizona are working on federal funding for a bridge to enable trucks to avoid the Hoover Dam, which is unable to support the weight of LCVs. The Canamex Corridor Coalition is set to meet next month in Salt Lake City, and again in Great Falls, Mont., in October. Edmonton Sun (06/22/00) P. S5; Sandor, Steven
Illinois Mulls Gas Tax Cut
Illinois legislators next week will consider a temporary rollback of the state gasoline tax that could cut Chicago-area prices roughly 10 cents a gallon. But it is uncertain whether a price cut would be passed along to drivers or will simply be kept by the retailers; such a concern was cited by the Senate's Democratic leader and the Democratic state House Speaker.Chicago Mayor Richard Daley's administration Wednesday convinced a city council member to suspend her effort to reduce the local fuel tax. Instead of this local tax reduction, the mayor's administration promised a hearing on the issue next week.
Despite the concerns, oil industry representatives including Illinois Petroleum Marketers Association executive vice president Bill Fleischli said market forces would be enough to ensure that a tax suspension would make a dent in pump prices. Chicago Tribune (06/22/00) P. 1; Kemper, Bob; Long, Ray
Navistar Chairman Warns of Slowdown in Truck Market
Executives at Navistar, the U.S. truck and engine manufacturer, said June 21 that the North American truck market could be slowed rather severely in the upcoming fiscal year by higher fuel prices, a slower economy, and deteriorating used truck prices.Chairman John Horne said a dip of about 20% could be anticipated with a concentration in the area of heavy trucks. Such a falloff would constitute the overall sale of about 405,000 trucks, down from nearly 465,000 this past year. There is still a possibility that the drop-off will prove to be more moderate. Financial Times (06/22/00) P. 22; Tait, Nikki
Officials Looking For Solutions to Connecticut's Transportation Problems
Connecticut state House Speaker Moira Lyons (D-Stamford) is putting together a summit regarding the state's transportation issues, probably to take place in September. She expects to bring transportation officials, a consultant, unions, businesses, and other state officials together at the summit.She discussed this matter, along with issues regarding truck traffic and safety, at a Wednesday meeting in the nation's capital with U.S. Sen. Joseph Lieberman (D-Conn.) and state Rep. Jacqueline Cocco (D-Bridgeport). Cocco said they are looking at how to reduce truck traffic by putting freight on water or rail. Associated Press (06/22/00)
Canadian Trucking Alliance Sets Dates for National Trucking Week
The Canadian Trucking Alliance, a federation of seven provincial trucking associations, has announced that National Trucking Week 2000, designed to highlight the vital contribution made by the 400,000 people in Canada's trucking industry, is set for September 11 to 16. CTA invites Canadian trucking companies to use the logo for the second annual trucking week on promotional materials or giveaways. Edmonton Sun (06/22/00) P. S10Canadian Web Site Keeps Truckers in Touch
Independent truck drivers and the companies that hire them are now convening regularly in cyberspace thanks to a new Web site launched by London-based National Truck League, a provider of insurance products and services to the trucking industry.The site, which was perfected in February, allows truckers to review policies, process claims, and keep pace with National Truck League products and promotions. Company president Rod Stiller said the site was set up to combat the inefficiency of telephone service. Edmonton Sun (06/22/00) P. S8; Paraskevas, Joe
BAX Global Opens Second Office in Puerto Rico
BAX Global recently expanded its service capabilities in Puerto Rico by adding a second office that enhances service to the entire island nation. The new office, located near Rafael Hernandez International Airport, will add 40,000 square feet of warehouse space, handle all inbound shipments and provide quicker deliveries for BAX customers. The Irvine, Calif.-based company also says the new office will speed up outbound services by 24 hours. Transport Topics staffCompiled by Transport Topics staff and INFORMATION, INC. © 2000
