News Briefs - Jan. 31
- Texas Plan Calls for Rail Use, Truck Roadways
- Midwest Storm Snarls Travel; 14 Dead
- Tenneco to Close Plants, Cut Jobs
- Tower Group to Acquire Clearance Operations From UPS Unit
- Truck Drivers Split on Use of De-Icer
- Transportation Logistics Launches New Subsidiary
- Old Dominion Profits Rise
- Celadon Posts Higher Quarterly Earnings
- California Assembly Passes Carbon Dioxide Bill
- More Job Cuts Coming, But Worst Seen Over
- For Trucking Companies, Road Rage Is a Serious Issue
- Midwest Storm Snarls Travel; 14 Dead
Texas Plan Calls for Rail Use, Truck Roadways
Texas Governor Rick Perry will pay for a comprehensive “Trans Texas Corridor” plan, designed to integrate roads, rail and utility infrastructure with a system of tolls, the Abilene Reporter-News reported Wednesday.The plan, which won praise from state policy groups, is aimed at dealing with population growth predicted for the state and calls for the easing of congestion through greater use of rail and through specialized roadways for trucks.
Perry’s plan is to build 4,000 miles of toll roads and rails parallel to existing interstate highways, using mostly private-sector investment. He said investors would recoup their money plus profit from the toll revenue.
The Reporter-Journal said each 1,000-foot-wide swath would accommodate six highway lanes and six sets of railroad tracks, plus underground pipelines that could carry water, electricity, natural gas, liquid petroleum and broad band fiber optic cable.
“But,” the release said, “if rail freight's market share continues its decline to the levels seen in Europe, truck traffic could increase 235%-- the equivalent of a 49% increase in overall traffic.”
An increase in traffic through Texas’ urban centers could lead to congestion and delay shipments. Transport Topics
(Click here for the full press release.)
Midwest Storm Snarls Travel; 14 Dead
At least 14 deaths have been blamed on a winter storm that swept through the Midwest and into New England Thursday, causing scores of car and truck accidents and leaving roads in dangerous conditions, the Associated Press reported.The combination of occasionally heavy snow, sleet and freezing rain - coupled with temperatures hovering around the freezing mark - were expected to make travel nightmarish Thursday in several states, including Kansas, Missouri, Iowa and Michigan, the AP said.
The heavy snow and freezing rain shut down schools and caused the Michigan Legislature to call off its session, while forcing numerous cancellations and delays at Chicago’s O’Hare Airport.
More than 300,000 households were reported to be without electric power in Kansas, Michigan and Indiana, the AP said, and power company spokesmen warned that the outages could last several days.
Oklahoma Gov. Frank Keating declared disasters in 26 counties and urged people to stay off the roads.
The storm came on the heels of unseasonably warm weather with some states reaching record highs just days earlier. Transport Topics
Tenneco to Close Plants, Cut Jobs
Vehicle parts manufacturer Tenneco Automotive Inc. said Thursday that it plans to close eight plants and cut as many as 900 jobs worldwide as it reported a fourth-quarter loss exceeding that of the previous year.The Lake Forest, Ill.-based company reported a net loss of $99 million, or $2.53 per share, compared with a loss of $63 million, or $1.74 per share, in the same period in 2000. The results include restructuring and other expenses.
For all of 2001, the loss was $130 million, or $3.43 per share, from $41 million, or $1.18 per share.
The job cuts amount to about 4% of the company's 22,000 workers. In addition, production at 20 other facilities will be consolidated or rearranged. Transport Topics
(Click here for the full press release.)
Tower Group to Acquire Clearance Operations From UPS Unit
Tower Group International Inc., a subsidiary of FedEx Trade Networks Inc., has agreed to acquire four express customs clearance operations of Fritz Cos. Inc., a UPS company.The locations of the operations are Memphis, Tenn.; Oakland, Calif.; Anchorage, Alaska and Springfield, Mo. Employment offers will be extended to all of the approximately 1,000 employees at these locations, Tower said.
Fritz, which handles about 80% of FedEx's U.S. customs-brokerage, was sued by the Memphis, Tenn.-based package shipper for allegedly revealing some trade secrets to its parent UPS, Bloomberg said. As a result of this transaction, both sides agreed to end litigation.
FedEx is ranked No. 2 and UPS No. 1 on the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Truck Drivers Split on Use of De-Icer
Truck drivers are split on Montana's decision to use chemical de-icer on winter roads instead of sand, the Associated Press reported Wednesday.State officials say that although the magnesium chloride used to thaw ice from pavement causes corrosion to vehicles, the de-icing solution is cheaper, more effective and pollutes less than using salt-laced sand.
Some truckers said they don't like de-icer because it can splash into wiring and affects their rigs' lights and electrical systems, AP said. But other truckers favor the system because they say it does a better job keeping the roads safe.
De-icer can last for a week when applied to bridges to prevent frost, AP said. Transport Topics
Transportation Logistics Launches New Subsidiary
Transportation Logistics International Inc. announced Thursday that it has launched a wholly owned third-party logistics management subsidiary, called Translogistics.Translogistics will provide domestic intermodal trucking, consolidation and warehousing for its clients, the company said in a release.
"After numerous requests from our clientele we decided to form a subsidiary company that could properly service this facet of the industry by providing not only intermodal trucking but the ability to warehouse and distribute inventory," said Mike Margolies, chairman and chief executive officer.
Margolies said the company expects to generate more than $3 million from its first terminal, which will be in New Jersey. Transport Topics
(Click here for the full press release.)
Old Dominion Profits Rise
Less-than-truckload firm Old Dominion Freight Line Inc. said Thursday that an increase in market share and its recent acquisition of Carter & Sons Freightways helped push up its net income for both the fourth quarter and 2001 fiscal year.The High Point, N.C.-based company said that fourth-quarter net income was $4.1 million, or 50 cents per share, compared with $2.5 million, or 30 cents per share in the fourth quarter of 2000. Revenue from operations rose 3.3%.
For the full year, income was $11.9 million, or $1.43 per share, compared with $13.7 million, or $1.65 per share in the previous year.
Old Dominion is ranked No. 34 in the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
Celadon Posts Higher Quarterly Earnings
Celadon Group announced Thursday that it had earnings of $199,000, or 3 cents per share, for its fiscal second quarter, which ended Dec. 31, 2001.The earnings are a marked improvement over the same quarter in the previous year, when the company took a $555,000, or 7 cents per share, loss. Celadon reported consolidated revenue of $79.3 million, a 5% improvement from an adjusted result of $75.4 million in revenue for the previous year. Last year's results exclude revenues from the divested flatbed division or higher revenues related to U.S. border crossings.
Operating income from trucking increased from $1.7 million in the December 2000 quarter to $2.0 million in the current quarter. The company said lower interest costs and improved margins from the reduction of more than $20 million in debt helped offset higher insurance and tractor costs.
Based in Indianapolis, Celadon is ranked No. 45 on the 2000-2001 Transport Topics 100 list. Transport Topics
(Click here for the full press release.)
California Assembly Passes Carbon Dioxide Bill
California's state assembly has passed a bill to curb carbon dioxide emitted by vehicles sold in the state by 2005, Bloomberg reported late Wednesday.The state already has stricter air-quality standards than the rest of the country and truckers operating in the state have argued that California laws, such as those for specially blended fuel, which is more expensive than conventional fuel, have put them at a competitive disadvantage with regard to truckers in other states.
Carbon dioxide is not usually considered a pollutant, the Los Angeles Times said, but has been implicated by some scientists as a cause of the so-called "greenhouse effect" which could lead to global climate change.
Passed by a 42-24 vote, the measure - which still requires ratification by the state Senate and the signature of Gov. Gray Davis -- seeks to cut exhaust by "the maximum extent feasible."
The measure requires the state's Air Resources Board to regulate fuels as well as the pollutants created by burning of fuels.
The Alliance of Automobile Manufacturers, which is opposed to the bill, said it is an attempt to lift fuel efficiency guidelines, which can only be set at the federal level, Bloomberg said.
A lobbyist for the manufacturers called it "a regulatory program based on whimsy," the LA Times said. Transport Topics
More Job Cuts Coming, But Worst Seen Over
Analysts believe that more U.S. companies will cut jobs over the next few months, even as the economy begins to pull out its recession, but the pace of cuts may relax tremendously, Reuters reported Wednesday.A reduction in the pace of layoffs and job eliminations could be expected to boost consumer confidence and result in greater demand for trucking services.
The Labor Department releases its January employment report Friday, and observers expect that it will show a continued rise in the nation's unemployment rate, the news wire said.
Federal Reserve officials have made comments in recent weeks indicating they expect continued softness in the labor market. The job market often stays weak after recovery begins, Reuters said. Transport Topics
For Trucking Companies, Road Rage Is a Serious Issue
Trucking companies worry about their drivers falling prey to road rage and some are trying to counsel drivers on the subject, a Nebraska newspaper reported Tuesday.The Kearney, Neb. Hub reported Tuesday that Kim Herald, safety director for Brown Transfer in Kearney, speaks regularly with the company's drivers about avoiding road rage.
any incidents involving trucks are actually caused by automobile drivers that do not fully understand the limitations of trucks, Herald said.
riving courteously and avoiding eye contact are ways truck drivers can avoid being involved in a road rage incident, he said.
Ron Schultze, safety director for Justa Trucking, another local company, also noted that avoiding road rage can start with the hiring process. Although it is impossible for a truck driver to avoid it on the road, selectively picking drivers whom a company believes will avoid confrontation can help. Transport Topics
