Executive Briefing - April 6
- PG&E Files for Bankruptcy
- DOE Warns of Summer Gas Price Hike
- Trism Vice President Leaving Company
- KKK Removed From Adopt-A-Highway Program
- Arkansas Urges Safety Amid Highway Overhaul
- Wash. State Senate Eyes Hikes in Fuel Tax, Vehicle Fees
- Glitches, Driver Error Causes False EZPass Violations
- Sysco Expects Higher Earnings
- Intermodal Traffic Down 3.1% Last Week
- U.S. Issues $97.8 Million for Road Relief
- Missouri House Seeks Tax Money for Road Repairs
PG&E Files for Bankruptcy
Pacific Gas & Electric, California's largest utility, filed for Chapter 11 bankruptcy protection Friday despite months of efforts by state officials to bail out the cash-starved company, news services reported.Pacific Gas and Electric is a unit of PG&E Corp. (PGE), and serves both businesses and residents. It has piled up about $9 billion in debts because its wholesale prices have soared, but a rate freeze imposed under California's 1996 utility deregulation capped retail prices.
On Thursday, power grid managers said California will see more than a month of rolling blackouts for as many as 5 million people at a time if residents use as much power this summer as last summer.
There were also rolling blackouts in January and March, which significantly cut into general business activity and curbed freight shipments in the areas then affected. Transport Topics
DOE Warns of Summer Gas Price Hike
The U.S. Department of Energy said Friday this summer could bring another round of severe price spikes in gasoline because of tight supplies and higher prices for environmental additives, news services reported.The government's forecast said there’s a high probability that motorists will pay on average more than the $1.53 a gallon they paid last summer.
The Energy Information Administration said by the end of May, gasoline inventories are expected to be 9 million barrels below what they were at the start of last summer's driving season -- or about 200 million barrels.
So, if there are supply disruptions or bottlenecks, there could be regional price spikes, especially in the Midwest, where gasoline prices soared to more than $2 a gallon last summer. Transport Topics
Trism Controller Leaving Company
Trism Inc. said Friday that David Harris has resigned as vice president and controller to accept a position with another trucking company.In addition, Gerald Hendren has joined the Kennesaw, Ga.-based company as a financial consultant. He formerly was the chief financial officer of Tri-State Motor Co.
Trism is ranked No. 56 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
KKK Removed From Adopt-A-Highway Program
The Ku Klux Klan has been removed from the Adopt-A-Highway program for failing to clean its assigned strip of shoulder, the Associated Press reported.Following a six-year legal battle, the group recently won the right in the U.S. Supreme Court to pick up trash along I-55 in Missouri.
However, the story said the group never did any cleaning and didn't respond to a March 20 ultimatum from the Missouri Department of Transportation. Transport Topics
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Arkansas Urges Safety Amid Highway Overhaul
With a major interstate highway refurbishing project under way, Arkansas this week launched a safety information program to warn motorists about rehab work that will spread over 380 miles of roads in the next four years, the Associated Press reported.The $1 billion state highway improvement project could add more traffic congestion and increase the risk of work-zone accidents, which already cause an average of 22 deaths a year and 940 injuries, the story said.
Motorists have often rated the state's highways as the worst in the nation. The project will cover about 60% of Arkansas interstates, and for much of the time more than 200 miles will be under contruction at the same time, up from an average of 12-15 miles now.
To minimize problems, the state's "Pave the Way" program urges motorists to check a highway department Web site for alternate routes to avoid construction zones. Transport Topics
Wash. State Senate Eyes Hikes in Fuel Tax, Vehicle Fees
The Washington state senate has approved a transportation package that could mean higher gasoline taxes and vehicle surcharges, the Associated Press reported.To fund construction projects aimed at relieving congestion, the package that is still being drafted would raise the state gasoline tax by 12 cents a gallon from its current 23 cents per gallon, AP said.
It was also allow the Puget Sound area and perhaps other districts to vote on a further regional gas tax hike along with surcharges of $150 per commercial vehicle and $75 for passenger vehicles. Transport Topics
Glitches, Driver Error Causes False EZPass Violations
New Jersey transportation officials have dismissed about 210,000 EZPass violation notices that were wrongly generated because of system glitches and driver error, the Associated Press reported.AP said a study on the toll system found many drivers have mounted the transponder tags incorrectly on their windshield, causing many of the erroneous violations.
Nearly one million violations were issued during the past 20 months, but only 22% had been paid, the study found. Transport Topics
Sysco Expects Higher Earnings
Sysco (SYY), North America's largest foodservice marketer and distributor, said strong sales are expected to boost earnings above initial estimates for the fiscal third quarter ended March 31.Chairman Charles Cotros said earnings will be at the higher end of the 18-20 cent range, compared with 15 cents last year. According to Reuters, analysts were expecting 18 cents per share for the quarter.
Cotros also noted the Houston-based company outperformed its third quarter from last year, despite having to deal with more severe winter weather in 2001.
On Thursday, Supervalu Inc., a large U.S. food distributor and retailer, said it was cutting 4,500 jobs, and will close or downsize several distribution centers.
(Click here for the full press release.)
Intermodal Traffic Fell 3.1% Last Week
Intermodal traffic for truck-rail freight loads at major U.S. railroads dropped 3.1% last week to a total of 175,992 units, compared with 181,714 units during the same week in 2000, the Association of American Railroads reported.Last week’s fall was largest since a 7.5% drop the week of Feb. 24.
When reported separately, the number of truck trailers moved by railroads dropped 9.3% last week, while the number of containers dropped 0.1%. Trailers include only domestic loads. Containers, on the other hand, may also include international shipments.
Railroads reporting to AAR account for 98% of U.S. rail intermodal volume. Transport Topics
U.S. Issues $97.8 Million for Road Relief
U.S. Secretary of Transportation Norman Mineta said that $97.8 million in emergency relief funds will be provided to 13 states, Puerto Rico and the U.S. Virgin Islands to repair roads damaged from flooding, storms and other natural disasters.The repair work will include reconstructing damaged bridges and pavement surfaces, establishing detours and replacing signs.
Hawaii will receive $32 million because of heavy damage caused during flooding last November. Washington state will receive $20 million to help with repairs needed following the Feb. 28 earthquake. Transport Topics
(Click here for the full press release.)
Missouri House Seeks Tax Money for Repairs
The Missouri House gave initial approval to a $747 million plan to raise taxes for improvements to road and bridges, the Kansas City Star reported.The bill would ask voters in 2002 to enact a ¾-cent sales tax and raise gasoline taxes by 3 cents to 20 cents a gallon. This money would also be used to improve public transit.
The House has to give final approval before the bill moves to the Senate. And while the Republican-controlled Senate had said they would hold a hearing on the plan, the article noted recent partisan bickering has jeopardized the chances of quick passage. Transport Topics
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