P.M. Executive Briefing - July 24
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Aegon Sells Transamerica Finance Corp.'s Container Unit
Dutch insurer Aegon NV has agreed to sell Transamerica Finance Corp.'s container-transport unit to an undisclosed company for $260 million, Bloomberg reported Monday.The sale comes as part of Aegon's move to sell its non-insurance U.S. holdings so it can concentrate on insurance-related business, the article said.
Transamerica Finance's container-transport unit is based in Purchase, N.Y. Transport Topics
Navistar Will Put Engine Group in Subsidiary
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Current International Truck and Engine Corp. President Dan Ustian will have the same position with the new subsidiary, the announcement said, but no other changes in personnel are planned.
The company said separating its engine group will allow that business to focus on growth and expansion. Transport Topics
Truck-Only Lanes Being Studied In Southern California
Building truck-only lanes along a 38-mile stretch of a heavily traveled southern California freeway would cost $4 billion to $4.5 billion, the Riverside (Calif.) Press Enterprise reported Monday.For nine months the Southern California Association of Governments and the state transportation agency has been studying the idea of adding truck-only lanes to the 60 Freeway. The east-west freeway already hosts a large volume of truck traffic and local experts see it only increasing.
The primary impetus for that increase is the expected quadrupling of cargo traffic into the ports of Los Angeles and Long Beach by 2020 and the eventual opening of the Alameda Corridor, a rail and truck connection from the harbor to downtown Los Angeles.
The 60 Freeway has become a primary artery between Los Angeles and a growing number of warehouse facilities and distribution centers in Riverside and San Bernardino counties. There has also been a push to increase air cargo traffic out of Ontario International Airport, in San Bernardino County.
Officials are looking at adding truck-only lanes along side existing lanes, the Press Enterprise reported, and putting elevated lanes in other areas. The reported price tag, however, is 20-25% higher than original estimates.
Naresh Amatya, senior planner for SCAG, told Transport Topics the Truck Lane Task Force will meet Aug. 8. The task force will be given an update on the study, which should be completed in November, Amatya said. Transport Topics
Allied Drops Suit After Resolving Insurance Coverage
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Allied has no financial responsibility in the case, which stems from a 1994 multiple-fatality crash in which all but one claimant had settled for between $200,000 and $300,000.
After investigating the case, Allied said National Union unconditionally withdrew a previously issued reservation of its rights and defenses related to the judgement, prompting Allied to drop its suit.
A spokeswoman for Allied said CCI has insurance coverage for the entire amount of the judgement, but she expects the insurers to appeal the judgement.
National Union ranked seventh overall among property and casualty insurance companies in 1994 with more than 1,200 trucking policies in effect. It was 34th in 1999 with 649 policies, according to a survey of top insurance companies by Motor Carrier Safety Services, a private company based in La Mesa, Calif. Daniel P. Bearth, Transport Topics
Motor Cargo Industries Reports Second Quarter Earnings
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The company reported operating revenues fell 1.8% to $31.8 million, but net earnings were up 9.2% at 24 cents per diluted share.
Motor Cargo Industries is a less-than-truckload carrier primarily serving the western United States. Transport Topics
Goodyear Sees Resistance to Price Hikes on Tires
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Among the problems Goodyear cited were higher raw material costs and tougher global competition. But it emphasized that "price increases implemented in the second quarter were met with marketplace resistance and, as a result, negatively impacted volume in North America and Europe."
Goodyear is a major supplier to the motor vehicle industry. Various trucking companies have also reported weakened earnings against a backdrop of slowed activity for some freight categories while fuel prices have soared. Transport Topics
GeoLogistics Adds Three to Senior Staff
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The new staff are: Tom Post, Vice President for Asia/Pacific Development; Skip Dokken, Director of Global Marketing and Mike Bartyczak, Associate General Counsel and Legal Director.
GeoLogistics has almost 1,000 service centers in 140 countries. Transport Topics
Construction Begins on Hong Kong Container Port
A new container port under construction will bring Hong Kong's container handling capacity to 14.1 million TEUs when it is completed in 2004, Bloomberg reported Monday.Hong Kong is the world's busiest container port, handling 16.2 million TEUs last year. Trade through that area is expected to increase and the new terminal is expected to bring that total to 20 million TEUs a year, the report said.
An expansion of container handling in Hong Kong has implications for future truck-borne container freight shipments along the U.S. West Coast, which handles freight heading to and coming from major Asian ports. Transport Topics
Con-Way To Send 49 Drivers to Nationals
Con-Way Transportation Services will send 49 state champions to the 2000 National Truck Driving Championships, more than any other trucking company, Con-Way said Monday.The 49 drivers, who qualify for nationals by winning titles in their individual states, come from Con-Way's three less-than-truckload companies: Con-Way Central Express, Con-Way Southern Express and Con-Way Western Express.
The National Truck Driving Championships is a competition testing the safe driving skills and knowledge of drivers from across the country. It is sponsored by ATA and will be held Aug. 9-12 in New Orleans, La. Transport Topics
