News Briefs - Sept. 30
The Latest Headlines:
- Roadway Reports Third-Quarter Loss of $3.4 Million
- Amtrak Seeks Court Order to Halt Planned Strike
- FedEx Shareholders Approve Non-Binding Board Change
- Crude Oil Prices Continue Post-OPEC Cut Climb
- Third Phase of Route 28 Work to Snarl Pittsburgh Traffic
- Study Claims Bridge Tolls Would Decrease NYC Traffic
- Segmentz Inc. Moves to Buy Florida Firm
- Amtrak Seeks Court Order to Halt Planned Strike
Roadway Reports Third-Quarter Loss of $3.4 Million
Roadway Corp. said Tuesday that it had a loss of $3.4 million in the fiscal third quarter ended Sept. 13.The Akron, Ohio-based company’s loss translates to 18 cents per share, as compared to a 36-cent-per-share profit in the same quarter last year. In the 2002 third quarter, the company reported net income of $6.9 million.
The company said that before charges related to its pending acquisition of fellow less-than-truckload carrier Yellow Corp., it would have reported a net income of $13.5 million or 71 cents per share.
Amtrak Seeks Court Order to Halt Planned Strike
Amtrak, the nation’s passenger railroad, asked a U.S. court to block a planned strike by six unions that serve the railway, Bloomberg News reported.The strike, planned for Friday, would force nearly 750,000 passengers and commuters in the Northeast to seek alternate transportation. In addition to carrying passengers, Amtrak also garners a significant amount of business from hauling small packages and mail.
The unions are seeking to protest plans to cut by half the proposed aid package for Amtrak. The railroad had sought $1.8 billion in funding from the federal government, but the Bush administration wants to provide Amtrak $900 million. The House approved $900 million in funding while the Senate is considering a funding package worth $1.35 billion, Bloomberg News said.
Amtrak Vice President Edward Walker told Bloomberg that a strike would cause an economic disruption well beyond the loss in revenue to the railway. The walkout would halt freight trains on Amtrak routes between Boston and Washington and disrupt mail shipments that travel on Amtrak trains. Transport Topics
FedEx Shareholders Approve Non-Binding Board Change
Shareholders of FedEx Corp. approved a union recommendation to require directors to face annual election by a two-to-one margin, Bloomberg News reported.The company opposed the change, Bloomberg said.
The resolution, though approved by a wide margin, is non-binding.
The Teamsters union, which recommended the change, said that making the directors face election each year would make the board more sensitive to the wishes of shareholders, Bloomberg reported. Transport Topics
Crude Oil Prices Continue Post-OPEC Cut Climb
The price of crude oil continued to rise Tuesday in the wake of announced production cuts by OPEC, as traders worried about supplies going into the North American winter, Bloomberg News said.Crude prices rose 5 cents a barrel to $28.45 in early morning, electronic trading on the New York Mercantile Exchange Tuesday. Since the Organization of Petroleum Exporting Countries announced its cut last week, crude oil prices have risen 5%, Bloomberg reported.
Going into the winter season in North America and Europe, the director of the International Energy Agency told Bloomberg that OPEC’s decision to cut production increases the risk of shortages and price increases in the fourth quarter. Transport Topics
Third Phase of Route 28 Work to Snarl Pittsburgh Traffic
The third phase of the reconstruction of Route 28 is expected to snarl traffic in the area of Etna, Pa., near Pittsburgh, state transportation officials told the Associated Press.The Pennsylvania Department of Transportation plans to start work on rebuilding the southbound lanes of the 45-year-old highway beginning March 1. Nearly 30,000 vehicles travel the road each day, AP said.
The southbound lanes will be maintained in one lane as workers widen the road to eliminate the bottleneck caused when two lanes squeeze into one at the Etna interchange, AP said. Ramps from Route 8 and the 62nd Street Bridge will both be closed while crews realign them to make merging easier.
PennDOT plans to start reconstruction Route 28 north in the same area, but not before 2006, AP said. Transport Topics
Study Claims Bridge Tolls Would Decrease NYC Traffic
A study commissioned by an advocacy group said that tolls on East River Bridges in New York City would reduce traffic on streets in the boroughs of Brooklyn and Queens, the Associated Press reported.The study, done by the Transportation Alternatives and the Straphangers campaign, said that motorists would not gravitate toward the bridges if they had to pay a toll, AP reported.
Traffic in downtown Brooklyn would drop by 12% and by 14% in Long Island City, the study said. The tolls could also raise as much as $500 million for the city’s coffers, AP said. Transport Topics
Segmentz Inc. Moves to Buy Florida Firm
Transportation and logistics management company Segmentz Inc. said Sept. 23 that it signed a letter of intent to acquire the outstanding shares of a logistics and transportation company based in Miami, but did not name the firm.egmentz said it would pay about $500,000 in cash and stock, as well as incentive and bonus payments based on milestone performance.
Chief Executive Officer Allan Marshall said in a statement announcing the pending sale that the acquisition would extend Segmentz’s market presence in the Southeast to Miami.
“With the acquisition we will be able to offer one- and two-day service from all other Segmentz locations into Miami. We project the additional service lanes could add $3 million to $4 million in annual revenues and be accretive to earnings,” he said.
The company said it would continue to expand its reach into target cities over the next 18 months.
The company said it currently offers local services in Chicago; Atlanta; Cincinnati; Louisville and Lexington, Ky.; Nashville and Knoxville, Tenn.; and Evansville, Ind. Transport Topics
This story appeared in the Sept. 29 print edition of Transport Topics.
