Con-Way to Invest $181 Million in New Equipment

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on-Way Transportation Services Inc. said Wednesday it would allocate $181 million this year to purchase additional tractors, trailers and forklifts to accommodate growth at its four regional less-than-truckload companies.

Con-Way is a subsidiary is transportation company CNF Inc. Con-Way's regional LTLs are Con-Way Central Express, Con-Way Western Express, Con-Way Southern Express and Con-Way Canada Express.

"The new equipment provided by this extra capital will keep us in line with growing shipper demand for our service," said Con-Way President Gerald Detter.

Con-Way said it had planned to spend $90 million on capital expenditures, but recent economic growth and continued consolidation has spurred the higher spending levels of spending. Included are 1,300 new tractors and 1,950 trailers, Con-Way said.

The investment also included start-up equipment for Con-Way Truckload, a new operating company scheduled to begin operations in the first quarter of 2005. (Click here for previous coverage.)

On Tuesday, Con-Way reported a record operating income for the second quarter of $67.1 million on revenue of $657.5 million. (Click here for related coverage.)

The company said it has about 440 service centers, a fleet of 33,000 pieces of equipment and 19,000 employees.

CNF is ranked No. 4 on the 2004 Transport Topics 100 list of the largest U.S. and Canadian trucking companies.

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