Executive Briefing - March 6
ul>
Canada Eyes Rail Merger Policy
Canada's transport minister is scrambling to compose a national policy proposal in case a U.S. railroad wants to acquire Canadian Pacific Railway (CP), the Journal of Commerce Online reported Tuesday.
The June expiration of a rail merger moratorium imposed by the U.S. Surface Transportation Board is spurring Canada's action.
What happens to railroads can often affect trucking, since railroads compete with trucks for many types of freight and also work with truck lines in the huge but still-growing intermodal container business.
Canada lacks laws involving mergers, foreign ownership or deliveries by foreign carriers from two or more points -- a practice known as cabotage. David Collenette, the transport minister, told the JOC that cabotage would not be embraced by Canada without a bilateral reciprocal agreement. Transport Topics
U.S. Factory Orders Drop 3.8%
Orders to U.S. factories, a chief indicator of future manufacturing and trucking activity, dropped 3.8% in January, the U.S. Department of Commerce reported Tuesday.Demand for transportation equipment plunged 23.8% and strongly influenced January's factory orders, the Associated Press noted. Excluding orders for transportation equipment, factory orders fell 0.3%, the third decrease in the last four months.
Tuesday's report had some good news. New orders for industrial machinery rose 5.3%, the largest rise in a year.
In another report, U.S. worker productivity slowed to a 2.2% rate of growth in the fourth quarter. Analysts had predicted a slightly stronger rate of growth of 2.4%. When productivity rises, living standards rise, allowing wages to increase without high inflation. Transport Topics
Rains Close One Calif. Route, Threaten Another
Heavy rains in southern California threatened to shut down two major bridges Tuesday, cutting off a major link between Santa Barbara and Ventura counties, the Ventura County Star reported.The bridges included a Highway 101 bridge over Ventura River and Ventura's Main Street bridge. In addition, giant boulders on an 11-mile stretch near Casitas Lake blocked the alternate route, Highway 150, the Star said.
The boulders were expected to be removed by explosives before the end of the week. Forecasts said the weather would clear up Tuesday evening. Transport Topics
MAN AG Reports Shortened FY Earnings
German truck manufacturer MAN AG (MAN-FRK) said Tuesday that it earned $164.3 million for its shortened six-month fiscal year ending Dec. 31, Bloomberg reported. The company will pay shareholders a dividend of 47 cents per share out of these earnings.
About 40% of MAN's sales come from heavy trucks.
The company said its earnings were helped rising exports and by demand for diesel engines.
However, Bloomberg noted that MAN and its competitors expect the West European market to decline after experiencing growth for three years. Transport Topics
GM-Trailer Bridge Extend Haulage Deal
Vehicle hauler Trailer Bridge (TRBR) said it has finalized a three-year agreement with General Motors (GM) to remain the exclusive carrier through December 2004 for GM's new vehicles moving from the U.S. mainland to Puerto Rico.
Trailer Bridge has been GM's exclusive carrier in that traffic since 1998, providing service out of Jacksonville, Fla. and Port Newark, N.J.
Trailer Bridge provides integrated trucking and marine freight service to and from all points in the lower 48 states and Puerto Rico, using its own trucks, drivers, trailers, containers, U.S. flag vessels and marine facilities in Jacksonville, Fla., New York and San Juan, P.R.Transport Topics
(Click here for the full press release.)
Motor Cargo Chairman to Take Over CEO Role
Salt Lake City-based trucking company Motor Cargo Industries (CRGO), which hauls less-than-truckload shipments of general commodities, said late Monday that Chairman Hal Tate will take over the role of chief executive officer as Marshall Tate leaves that job at the end of March.
The announcement said current CEO Tate was leaving to pursue a personal business opportunity. He became CEO in 1997.
Marshall Tate's seat on the company's board of directors will be filled by Louis Holdener, who will also be promoted to president of the company.
Motor Cargo is ranked no. 97 in the Transport Topics 100 list of U.S. trucking companies, based on 1999 data. Transport Topics
(Click here for the full press release.)
TNT Creates USA Express
TNT International Express (TP), part of the Netherlands-based TNT Post Group, said it is offering an intra-U.S. service for the first time since it began operations in the United States, and will also offer a one-rate express letter with no commodities or weight restrictions to and from the U.S. cities it will serve.
Its USA Express service will target the metropolitan areas of Baltimore, Boston, Chicago, Greenwich, Conn., Houston, Los Angeles, Miami, Newark, N.J., New York, Philadelphia, San Diego, San Francisco, and Washington.
TNT is also introducing an express letter feature to its Global Express product, offering a one-letter flat rate for worldwide service with no page or weight restrictions. Transport Topics
(Click here for the full press release.)
