P.M. Executive Brefing - Sept. 9
This Afternoon's Headlines:
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CSX Plans to Trim Management Roll By 800 Positions
Next month, CSX Corp. is to try to cut 14 percent of its management positions by offering early retirements and separation packages to certain nonunion CSX Transportation, CSX Technology, and CSX Intermodal employees. The company expects to save $75 million a year as a result of the program. It will take a $75 million pretax charge against fourth-quarter earnings to cover related costs.Brown Brothers Harriman analyst Carole Neely calls the packages "a benign way to lower head count after the Conrail merger." Investors have been trying to get railroads to lower costs for better earnings expansion, and Union Pacific Corp. gave early retirements to its railroad-division managers in July. Wall Street Journal (09/09/99) P. A10; Machalaba, Daniel
Experts Warn of Russian Mob Activity in Miami
Participants at a cargo-security conference in Miami Wednesday said the violence-prone Russian mafia appears to be moving into cargo crime in South Florida. ICL Investigations Inc. President Charles E. Meachum says, "They're going to pull up and start shooting. That's the way they do it." Meachum predicted a "bigger insurance problem" to result.In conference speeches, security experts recommended passing stricter laws and harsher sentences to discourage cargo theft. Meachum says he has spoken with insurers in London and has concluded that insuring expensive cargo going south via Miami will get tougher and tougher. He points out that some expensive cargo is now being shipped via Charleston, S.C., instead. Only a united front of business and government leaders can combat the problem, he says.
Comcar Industries loss-prevention director Jim Blake says among the suggestions his company has raised with shippers and carriers are keeping cargo from sitting idle, removing product identification from packages and trailers, and making security measures reflect the value of goods. He also has recommended instituting background checks for drivers and setting up company policies for prosecutions. Journal of Commerce (09/09/99) P. 15; Hall, Kevin G.
Ryan Calls for End of Tolls
Illinois Governor George Ryan has called for the elimination of toll roads, saying they are bothersome to drivers in the northern part of the state. While the governor's toll-way appointee, Arthur Philip, called for higher tolls for maintenance and new programs, Ryan said he would do all he could to limit the power of the Illinois State Toll Highway Authority and its 44-year program, according to reports in the Chicago Tribune. ABC NewsWire (09/09/99)Wabash National Corporation Announces Agreement to Acquire the Apex Group of Companies
The trailer maker and designer Wabash National Corp. will acquire the trailer and trailer-parts dealer and service company Apex Group, which operates at four locations in Indiana and Kentucky with total 1998 revenue over $30 million.The Apex Group's three units are Apex Trailer Service, Apex Trailer and Truck Equipment Sales, and Apex Rentals. Wabash National products are marketed under the brands Wabash, Fruehauf, and Pro-Par. "This acquisition is a part with our strategy to expand our retail branch network," says Wabash National President and CEO Jerry Ehrlich. PRNewswire (09/08/99)
International Star Inc. High Tech Division Field Testing on AVLIS System Phase I Completed
International Star Inc. says it has finished its Phase I testing of the AVLIS vehicle-tracking system. AVLIS is designed to integrate with business extant technology and is for custom use. Phase II of the tests will use a smaller, switched-circuit cellular version of AVLIS. International Star and AVLIS are putting together a marketing strategy using the trademark name QWIKTRACK. Business Wire (09/08/99)Rochester Council Overrides Mayor's Veto on Trucking
The Rochester, N.H., City Council voted 9-3 Tuesday to override Mayor Doug Lachance's veto of an earlier council vote that will delay the reopening of three streets in the city to trucks classified at least Class 8.Chestnut Hill Road, Portland Street, and Franklin Street were temporarily closed to such trucks last year, and the council wants them to remain so until an update of the traffic portion of the master plan.
Lachance said he vetoed the delay because a city Planning Department study found that the restriction had not cut per-day truck counts on the three streets — in fact, they were higher.
Councilman David Walker, who voted to override the veto, said the study results were "skewed by the lack of enforcement." On the other hand, Councilman Ken Billings, who heads up the Public Safety Committee and voted to sustain the veto, says he thinks "there is not a truck-traffic problem, there is a traffic problem."
The committee had recommended to lift the restriction on Chestnut Hill Road only. Foster's Daily Democrat (New Hampshire) Online (09/08/99); Robinson, Teresa
Panels to Focus on Border, Schools
Among the border-related issues to be the subjects of a state Senate committee study will be infrastructure for the increase in truck traffic due to Nafta, Texas Lt. Gov. Rick Perry said Tuesday. The Senate Special Committee on Border Affairs will make long-term projections for infrastructure requirements and examine the infrastructure's effect on the region's trade, economy, and safety. It will also issue recommendations to make Nafta traffic move more efficiently. The State Affairs Committee will examine truck safety and Texas's intermodal plans. San Antonio Express-News Online (09/07/99); Tolley, Laura© copyright 1999 INFORMATION, INC. Terms of Service
