P.M. Executive Briefing - June 7
This Afternoon's Headlines:
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Cargo Future Uncertain for Port of Boston
The Port of Boston could lose even more traffic to other ports in the near future, as a vessel-sharing agreement involving Maersk-Sealand, P&O Nedloyd, Orient Overseas Container Line, and Hapag-Lloyd expires next month.The six carriers made up about half of the container volume going through Boston in 1999, and roughly half of that was carried by Maersk-Sealand a company that could soon be finalizing a 30-year lease agreement for a New Jersey expansion. As a result, observers have mulled the possibility that Maersk-Sealand will abandon Boston, although the Massport's Mike Leone said he has not been told of any such plans and that he is still optimistic that Maersk-Sealand will continue using Boston.
Driving Instructor Found Guilty in Illinois License Payoff Scandal
A federal jury convicted driving instructor Alex McLeczynsky of racketeering conspiracy, extortion conspiracy, and one count of aiding and abetting extortion Tuesday in the first trial in Illinois' bribes-for-licenses scandal.Thomas Anthony Durkin, attorney for the defense, had attempted to paint his client as a victim in the scandal; he said he plans an appeal. The jury cleared McLeczynsky of a second count of aiding and abetting extortion. Associated Press (06/07/00); Robinson, Mike
USFreightways to Buy Back Up to 500,000 Shares
Chicago-based general freight truck line and logistics company USFreightways Corp. today said its board has authorized the repurchase of up to 500,000 shares of its common stock, from time to time starting June 8 and continuing through Dec. 31 if needed, in public market or private transactions. USFreightways has about 26.7 million shares outstanding.This was the second straight day the company has made news. On Tuesday, USFreightways announced that former US Transportation Secretary Samuel Skinner will become its chief executive in July, succeeding Cam Carruth, who remains board chairman through Dec 31. After that, Skinner takes on the role of chairman as well. Transport Topics staff
Special Hearing on Roadway Express Transfer Station in California Scheduled
The San Bernardino County Board of Supervisors scheduled a special night meeting for July 11 on Roadway Express Inc.'s proposed $28-million freight transfer facility so more residents could attend, the Riverside (Calif.) Press Enterprise reported today.Roadway Express submitted an appeal to the board, hoping to overturn the denial issued last month by the county Planning Commission. The company wants to build a transfer station in Bloomington, about 55 miles east of Los Angeles, and in turn consolidating the operations from three other facilities in San Bernardino County.
Roadway has indicated it would spend $1 million on ways to improve traffic flow and safety on streets near the proposed terminal. However, such groups as the Colton Unified School District have mounted opposition to the facility based on safety, traffic and environmental impact concerns. Transport Topics staff
Trailer Company Expected to Create 500 Jobs in Trenton, Ont.
Great Dane Trailers has selected the Quinte West region of Ontario for its new manufacturing facility, which is expected to employ at least 500 people.Trenton was chosen over Belleville, Cornwall, and other Ontario sites because of its proximity to Highway 401, the Belleville Intelligencer reported. Officials are hopeful that construction on the plant, which will build trailers and refrigerated vans for use in North America, will be complete in three months. Canadian Press (06/06/00)
Slowing Truck Sales Prompt One-Week Shutdown at Sterling Plant
The Sterling Truck plant in St. Thomas, Ontario, will shut down for the first week of July because of a slowdown in heavy truck sales across North America. However, company spokesman Jim McNamara said he is not aware of any plans to lay off any of the 1,900 employees in the near term.Because Sterling has broader line of heavy- and medium-duty trucks, the company is better positioned to withstand a downturn in the market that its competitor, International Truck and Engine Corp., which has already had to lay off about 400 workers in Chatham, Ontario.
Heavy-duty truck sales slow down when manufacturing declines, since they are used to carry freight, while medium-duty trucks are always needed. London (Ontario) Free Press (06/07/00) P. D1; De Bono, Norman
Compiled by Transport Topics staff and INFORMATION, INC. © 2000
