The Los Angeles bus and rail operators' strike that started Sept. 19 is about to end, as the workers' union and the Metropolitan Transportation Authority have come to an agreement, the Associated Press reports.

Neither side will reveal the terms of the tentative contract until it is ratified by the members of the United Transportation Union, the story said. The agreement was reached after all-night negotiations mediated by the Rev. Jesse Jackson, AP noted.

The strike had disrupted the transportation of nearly 500,000 riders, cutting into some local business and adding to traffic on the already-congested highways of Los Angeles and nearby ports, a bustling freight area. Transport Topics

EPA Will Likely Declare Diesel Exhaust a Carcinogen

The Environmental Protection Agency is expected to declare diesel exhaust a "likely human carcinogen" within a few months, USA Today reported Tuesday.

The EPA has been working on a report on diesel exhaust and its related dangers for the past decade, and a committee of independent scientists recently signed off on the report and will not review any more drafts of it, the newspaper said.

The report estimates that lifelong exposure to diesel fumes – which could occur with truckers – poses a cancer risk between roughly one in 1,000 to one in 100,000, although the EPA warns that estimate is highly uncertain, the story said.

Once the report is released, it will likely add to political support for EPA's efforts to cut back on truck- and bus-produced diesel exhaust, USA Today added. Transport Topics

After Two-Week Decrease, Diesel Prices Surge

After dropping for two straight weeks, the national average diesel price soared 5.6 cents last week to a record high of $1.670, the U.S. Energy Information Association reports.

That price is the highest since the EIA began this data series in March 1994, breaking the record set the week of Sept. 25 of $1.657.

Prices rose in every region, ranging from a 2.1-cent rise in the Rocky Mountains to a 7.1-cent spike in the Midwest, the report said. The price per gallon in those regions is $1.764 and $1.643, respectively.

California, site of the nation's highest diesel prices, rose 3.9 cents to $1.920, according to the EIA. Transport Topics

Trimac Agrees to Go Private

Canadian bulk carrier Trimac Corp.'s board of directors has approved a bid to take the company private, Reuters reported late Monday.

Company Chairman Bud McCaig and his son, Trimac Chief Executive Officer Jeff McCaig, are part of a group offering a bid of C$9.50 (US$6.25) for each Trimac share they do not currently hold, the story said.

The board's decision was made on conclusions drawn by financial advisers who deemed the offer to be financially fair to shareholders, Reuters added. Shareholders will vote on the offer Nov. 21. Transport Topics

Werner 3Q Profit Below Year Ago

Omaha, Neb.-based truckload carrier Werner Enterprises (WERN) reported third-quarter earnings of 26 cents per share, 10 cents less than one year ago, "due primarily to the high cost of fuel, a weak market for the sale of used trucks, and a slightly softer freight environment."

Werner bills itself as one of the nation's largest truckload carriers, with a fleet of 7,425 trucks and 19,620 trailers.

Looking past the third quarter, Werner added that "until market conditions improve, the company anticipates growing its fleet at a slower rate. However, when market conditions improve, the company intends to increase its growth rate."

Werner also said its third-quarter revenues were curbed about 4% by transferring its logistics business units to Transplace.com, an Internet-based transportation logistics firm that involves several large truckload carriers. Transport Topics

Mo. Governor/Dem. Senate Candidate Dead in Plane Crash

Missouri's Gov. Mel Carnahan, a popular Democrat locked in a very tight Senate race against incumbent Republican Sen. John Ashcroft, was killed in a Monday night plane crash, news services reported.

The crash took place about 25 miles south of St. Louis, the Associated Press said. That is the city planning to host the third and final debate Tuesday night in the presidential contest between Democrat Al Gore and Republican George W. Bush. Discussions were reported under way between those camps as to whether the debate should go on as scheduled.

Missouri is both a hotly contested swing state in the presidential campaign, and its Ashcroft-Carnahan race was seen as one of several close contests around the country that could decide whether the Senate remains in Republican control or will be led by Democrats when the next Congress convenes. AP said Carnahan's name will remain on the Nov. 7 ballot because the state deadline for ballot changes was Oct. 13. Transport Topics

Arkansas Best 3Q Net Income Up

Transportation giant Arkansas Best Corp. (ABFS) announced its third quarter results Tuesday, noting that net income increased 45% over the same period of 1999.

The company reported earnings of $23.3 million, or 97 cents per share - higher than both the same period of 1999, which was 67 cents per share, and analysts' estimates for the quarter, which averaged 81 cents per share.

Arkansas Best President and Chief Executive Officer Robert Young noted that subsidiary ABF Freight System, a less-than-truckload carrier, led the company with an operating ratio of 88.5%.

Other Arkansas Best companies include G.I. Trucking, Treadco Inc. and Clipper. Transport Topics

Dana Corp. Reports Low 3Q Earnings

Dana Corp., (DCN) manufacturer of engines and other vehicle components, announced Tuesday its third-quarter earnings of 19 cents per share, down from 97 cents per share in the same period of 1999.

CBS Marketwatch also noted Dana's results fell slightly below analysts' estimates.

Dana attributed the decline to several factors, including unexpected reductions in production for light truck and sport utility vehicles – some of Dana's largest customers – a declining North American heavy truck market, softness in the U.S. and European aftermarkets, and the continued weakness of the euro currency. Transport Topics

Firestone Not Expanding Recall as Reported

Officials at tire maker Firestone said Tuesday they are not recalling an additional 1.4 million tires, as reported Monday by Reuters and other news sources, USA Today reports.

Several state attorneys general issued a statement Monday saying Firestone had agreed to recall the additional tires, which were the subject of a Sept. 1 National Highway Traffic Safety Administration advisory, the story said. Firestone said instead it has only agreed to replace those tires mentioned in the advisory for its customers if they so desire, the newspaper noted. Transport Topics

Transit Group Has Loan Covenant Waiver Extended, Names CFO

Transit Group Inc. (TRGP) announced Tuesday its lenders have granted an extension of a waiver regarding loan covenants for up to an additional 60 days, pending negotiations regarding Transit's credit agreement.

In addition, Transit named James Overley senior vice president and chief financial officer, effective Oct. 30.

Transit is an Atlanta-based holding company for short-, medium- and long-haul trucking companies, focusing on truckload carriers.

Report Says Heating Oil May Not Be So Scarce

Many homes and businesses have stocked up early on heating oil, so the shortage may not be as severe as it seems, the New York Times reported Tuesday.

For the first time, many utilities and businesses are required to build a seven-day supply of heating oil before winter begins, and industry experts say those numbers do not show up in official reserves being tabulated by the oil industry.

The issue is affordability, not availability, one analyst told the paper. However, maintenance scheduled for October and November will shut down a number of refineries, the Times added.

On the New York Merchantile Exchange, last week's price for heating oil closed at $1.0161 a gallon, in contrast to 59.61 cents a year ago. By Monday, it had eased to 97.23 cents, according to the paper. Heating oil and diesel used by trucks come from the same refinery stocks and a shortage in one product usually leads to higher prices for the other. Transport Topics

Renault Signs Agreement for Stolen-Vehicle Tracker

U.K. traffic-information service provider Trafficmaster Plc and Renault SA (13190-PAR) have signed an agreement to equip some Ren-ault vehicles with stolen-vehicle tracking units, Bloomberg reports.

Trafficmaster's RAC Trackstar stolen-vehicle service will be a standard feature on Renaultsport V6 vehicles in the United Kingdom starting next March, the story said.

Trafficmaster has recently signed agreements for a variety of its services with vehicle makers such as Ford's (F) Land Rover unit and Peugeot, Bloomberg added.

Daewoo's Polish Truck Division to Lay Off 1,200

Daewoo Motor Polska Sp. Z o.o., the Polish truck-making unit of Korea's Daewoo Motors Corp., said Tuesday about 1,200 workers, or one-fifth of its workforce, will lose their jobs due to a sales decline, according to Bloomberg.

The truck maker said its September sales were down 29% from the same month in 1999, the story said. The layoffs will occur because the parent company is suffering from its own financial difficulties and cannot help its Polish unit overcome the drop in sales, Bloomberg said.

Daewoo Motor Corp. is currently trying to sell off some assets to pay over $80 billion in debts. Transport Topics

Trinity to Close Three Plants

Trinity Industries (TRN) announced Tuesday it will close three railcar manufacturing and parts plants, in Greenville, Pa., Mt. Orab, Ohio and Asheville, N.C.

Company president, chairman and CEO Timothy Wallace said in the announcement the closings were part of a consolidation and production repositioning effort.

Trinity is based in Dallas and operates six business segments: the Railcar Group, the Inland Barge Group, the Parts and Services Group, the Highway Construction Products Group, the Concrete and Aggregate Group, and the Industrial Group. Transport Topics

Headlines From Yesterday's P.M. Briefing

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