Executive Briefing - June 21

The Latest Headlines:

Ethanol Hurts, Not Helps Consumption

A new report prepared by the Bush administration found that few vehicles are actually using ethanol fuel, and the legislation surrounding it has actually caused an increase in fuel consumption, the New York Times reported.

Fewer than one in 1,000 of the nation’s service stations sell ethanol, so most drivers of vehicles equipped to run on either ethanol or gasoline don’t really have an option.

According to the Times, there are 101 stations that serve E85, the 85% ethanol, 15% gasoline mix. Ninety-nine are located in the Midwest and there is one each in Virginia and South Carolina.

At the same time, a 1988 law promoting ethanol added an extra incentive to build dual-fuel vehicles, allowing manufacturers to lower the average gas mileage of the rest of their vehicles.



That allowed manufacturers to sell more gas-guzzling vehicles, contributing to an increase of 473 million gallons in American gasoline consumption last year. Transport Topics


Slow Economy Can’t Dampen July 4th Travel

Americans are expected to continue with July 4th travel plans despite the sluggish economy, high gas prices and the holiday falling on a Wednesday, according to AAA.

Of the 36.6 million Americans planning to travel this holiday, 31.8 million are expected to go by motor vehicle, 800,000 more than last summer, potentially causing traffic congestion from Tuesday through the following Sunday.

AAA expects 300,000 more travelers than last year, a surprise based on the economy.

Regionally the southeast and west will see the most travelers, and the most popular destinations will be small towns and rural areas. Transport Topics

(Click here for the full press release.)


Report: Technology Can Save Billions on Fuel Consumption

The Union of Concerned Scientists said in a report that improving technology could save consumers nearly $9.8 billion a year through reduced fuel consumption, and raise efficiency to an average of 40 miles per gallon for cars and trucks, the Los Angeles Times reported.

The group said that while these vehicles would have the same acceleration, same general performance and same cargo space, existing technology could help many vehicles get as much as 55 miles per gallon by 2020.

The report also stressed the importance of further developing hybrid technology, which combines a traditional gasoline engine with an electric motor. It could improve fuel efficiency up to three times that of gasoline-only vehicles. Transport Topics


Toronto Congestion Plan Would Hurt Truckers

The Toronto Transit Commission’s proposed plan to limit traffic downtown during rush hours would likely create major problems for couriers and delivery trucks, the Toronto Sun reported

The TTC is considering restricting existing lanes in the downtown area for the exclusive use of public transit. Opponents of the plan say it will actually increase gridlock, while forcing trucks to do most of their business during off-peak hours.

This plan, which would include widening sidewalks, is designed to help public transit while discouraging motorists. Transport Topics


TruckersB2B Announces Deal With Goodyear

Celadon Group's (CLDN) TruckersB2B Inc. will now give members rebates on the purchase of Goodyear, Kelly, and NEXT-TRED commercial truck and trailer tires.

TruckersB2B is an Internet—based “business-to-business” provider, mainly for private fleets and small trucking companies, offering savings on fuel, tires, freight finding, insurance and other services.

Goodyear Tire and Rubber Co. (GT), the largest tire company in the world, will offer new and retread truck tires to members of TruckersB2B. Transport Topics

(Click here for the press release.)


Pa. Turnpike Plans New Plazas

Pennsylvania Turnpike officials have announced preliminary plans for 11 new “super plazas” to be constructed between 2002 and 2010 that will offer truck drivers their own private space with telephone-equipped booths, television, washers and dryers and showers, reported the Pittsburgh Post-Gazette.

Most of the 19 existing plazas in state will be remodeled to accommodate commercial drivers, who make up 15% of the highway traffic but 45% of the revenue.

The 11 new plazas will service motorists traveling in both directions of the highway, accommodating hundreds of cars and trucks at a time while shielding neighbors from excess light and noise.

Officials and advisors hope to finalize plans this fall. Transport Topics


BNSF, CSXI Join in RoadRailer Service

The Burlington Northern and Santa Fe Railway Co. is teaming with CSX Intermodal (CSX) to offer a coast-to-coast service they say will be competitive with over-the-road transportation.

The new service expands BNSF’s Ice Cold Express, established in 1999 as a weekly service for temperature-controlled products moving between Southern California and Chicago. It was later expanded to include service to Montreal and Toronto.

Using CSXI lines, the service will now connect San Bernadino, Calif., and Little Ferry, N.J., twice a week, providing shippers with fourth-evening delivery.

The service will use 53-foot Wabash National ReeferRailer trailers and bogies in RoadRailer unit trains.

Designed to be competitive with long-haul trucking, RoadRailer uses trailers that can operate both on rails and highways. Transport Topics

(Click here for the press release.)


Ryder Buys Fulfillment Operation

Ryder System Inc. (R) said it has acquired the fulfillment operations of Sameday.com Inc. for an undisclosed sum.

The addition of the former Sameday facilities gives Ryder a network of fulfillment centers that includes Alliance, Texas, Rancho Cucamonga, Calif., Odenten, Md., and now Newark, N.J., and Memphis, Tenn.

As a result of selling its operating services to Ryder, Sameday will focus on commercializing its proprietary Syntempo software, used in inventory control and orders through a supply network.

Ryder is ranked number No.13 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics

(Click here for the press release.)


Pickups Plus Plans Store Near New Orleans

Pickups Plus, a retailer and franchiser in the sale of aftermarket accessories for pickup trucks and sport-utility vehicles, said Thursday that it will open a store in the New Orleans area.

These vehicles are used in a wide variety of trucking applications, especially among utility fleets and other service-oriented businesses.

rian Glover, vice president of franchising, said this first southern location is an important step as Pickups Plus tries to become the first national chain of stores in the aftermarket accessory industry. Transport Topics

(Click here for the press release.)

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