P.M. Executive Briefing - Dec. 27

This Afternoon's Headlines:

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  • Still More Names Swirl Around DOT Post
  • U.S. Trucking Plans Name Change, Reverse Stock Split
  • German Truckers Seek Tax Relief
  • Storm Coats Ark., Okla. In Ice
  • Judge: UPS Must Consider One-Eyed Drivers
  • Pa. Driver License Privacy Case Brings Large Penalty
  • Calif. Funds Awarded for Alternative-Fuel Trucks, Buses
  • FedEx Driver Admitted to Stealing Parcels for GiftsPlus:

    Still More Names Swirl Around DOT Post

    The list of names mentioned for secretary of transportation in the Bush administration continues to grow, with media reports mentioning governors Paul Cellucci of Massachusetts and Bill Graves of Kansas.

    Cellucci was on a panel with other New England governors about political appointments, and his own name was mentioned as transportation secretary, the Boston Herald reported.

    Although the Teamsters helped defeat Sen. Spencer Abraham in Michigan, they now want him to serve as transportation secretary as a goodwill gesture to the new administration, the Wall Street Journal reported. Wisconsin's 14-year Gov. Tommy Thompson has been widely reported as saying he wanted the post, although he was offered the top spot at health and human services. Former federal maritime agency head Elaine Chao, who is married to Sen. Mitch McConnell (R-Ky.), is apparently still in the running.



    Energy secretary candidates include Alaska Gov. Tony Knowles, who supports oil drilling in the Arctic National Wildlife Refuge although he is a Democrat, according to the Associated Press. Defeated Sen. Slade Gorton (R-Wash.) and the Edison Electric Institute's Thomas Kuhn are also possibilities, according to AP.

    Sen. Ben Nighthorse Campbell, a former Democrat who turned Republican, is under consideration to head the Interior Department, AP reported. Gorton is being eyed for that post as well, AP said.

    For defense secretary, former Sen. Dan Coats of Indiana, who served for nine years on the armed services committee, is under consideration, the New York Times reported. So is Paul D. Wolfowitz, a former Pentagon official, the Times reported. Transport Topics


    U.S. Trucking Plans Name Change, Reverse Stock Split

    U.S. Trucking (USTKE) announced Wednesday its plans to change its name to U.S. Holding Corp., relocate its corporate offices to Louisville, Ky., and perform a 1-for-100 reverse stock split.

    Subject to shareholder acceptance, the company's board of directors has approved the name change, the relocation of its corporate offices, and a reverse split of its issued and outstanding common shares on a 1-for-100 basis.

    The company said its name change "clearly reflects" its new focus on purchasing, financing, managing, and growing non-asset-based trucking operations.

    The relocation to Louisville centralizes management and many corporate resources. The aggressive reverse stock split is expected to enable greater marketability and distribution of the company's securities, U.S. Trucking said. Transport Topics


    German Truckers Seek Tax Relief

    German truckers are appealing to their government for tax breaks or subsidies in the face of many bankruptcies, the Journal of Commerce Online reported.

    An environmentally related tax increase on fuel is scheduled to kick in next month - in contrast to tax decreases by France, Belgium and the Netherlands, the article said. German truckers are barred by law from forming blockades, the protest tactic used recently by irate truckers in other European countries, so freight traffic isn't likely to be disrupted by demonstrations.

    Germany's two largest trucking company associations sent letters in late December to the country's transportation and finance ministers warning that a growing number of firms were going broke, JOC reported. Transport Topics


    Storm Coats Ark., Okla. In Ice

    Up to two inches of ice coated Arkansas and Oklahoma as a strong winter storm barreled eastward Wednesday.

    The Oklahoma Department of Public Safety reported that most major roads in the state - including Interstates 35, 40 and 44 - were slick and advised against travel. One state trooper told the Associated Press that everyone should stay out of Oklahoma since there crashes everywhere due to the poor road conditions.

    The U.S. Postal Service suspended mail delivery in western Arkansas due to slick roads, the news service reported. Little Rock National Airport was closed Wednesday as was the state government, AP reported.

    The Texas Department of Transportation said travel was "not advised" on Interstate 27 north of Amarillo, due to ice and snow. The storm dumped about 20 inches of snow on Amarillo, shattering a number of records, AP reported. Transport Topics


    Judge: UPS Must Consider One-Eyed Drivers

    United Parcel Service (UPS) may need to loosen vision requirements for its drivers in light of a federal court ruling, Bloomberg News reported.

    Categorically rejecting drivers who posses good vision in only one eye - and little or no vision in the other - violates the Americans with Disabilities Act, U.S. District Judge William Alsup ruled earlier this month, according to Bloomberg.

    He was ruling on a suit brought in 1997 by the Equal Employment Opportunity Commission, ordering UPS to let one of the individuals represented by EEOC advance to driver training, the news service reported.

    He dismissed claims from three other plaintiffs, Bloomberg reported.

    The ruling could have a widespread effect on the trucking industry by prompting other companies to revise their physical requirements for drivers. Transport Topics


    Pa. Driver License Privacy Case Brings Large Penalty

    Pennsylvania's Transportation Department said Wednesday the state has reached agreement with a national consolidator of driver information, ChoicePoint Inc., under which the company will regain limited access to Pennsylvania driver records but pay a penalty of $1.375 million for violating privacy rules.

    PennDOT said that last January it had terminated all ChoicePoint access to Pennsylvania records "based on evidence the company ignored rules about maintaining the privacy of this information."

    Besides paying that penalty, PennDOT said ChoicePoint would also have to comply with more stringent contract requirements that limit it to providing Pennsylvania driver records to insurance companies only for insurance-related purposes.

    The agency added that "for at least the first, probationary year, ChoicePoint will not be able to provide the records for employment or credit checks as allowed under its previous contract."

    PennDOT noted that before it ended ChoicePoint's contract in January, most insurers had obtained driver information through ChoicePoint rather than directly from the state agency. This allowed insurers to obtain driving records from most states through a single source, and ChoicePoint also applied standard violation codes to all states' records for ease of policy underwriting.

    Under a proposal offered by PennDOT and the state's Department of Insurance, driver records will be made available to ChoicePoint only if the company is a subcontractor to an insurance company. Both the insurance company and ChoicePoint will have contracts with PennDOT, and insurance companies will share responsibility and liability for maintaining the privacy of requested records. Transport Topics


    Calif. Funds Awarded for Alternative-Fuel Trucks, Buses

    More than 360 new clean-fuel transit buses and heavy-duty vehicles will be on the road soon due to projects recently funded for the coming year, the Mobile Source Air Pollution Review Committee announced Wednesday.

    The projects could spur the infrastructure trucking needs to switch from conventional diesel fuel.

    he MSAPRC, which is responsible for funding clean air projects that reduce air pollution in Southern California, awarded a total of $17.2 million in grants for 2001.

    This year's funding program included $7.1 million to be allocated to alternative fuel transit buses by providing up to $40,000 per bus purchase, 50% of refueling infrastructure (up to $200,000) and 100% of supplemental mechanical training (up to $15,000). Transit agencies with fewer than 100 buses and first-time alternative-fuel fleets were given priority access to the funds.

    The group also awarded $4.5 million to be used to buy new on- and off-road heavy-duty vehicles that run on alternative fuels or for replacing older engines with alternative-fuel engines. The program allocated $2.2 million for public fleets and $2.3 million for private heavy-duty vehicle fleets.

    MSRC was created in 1990 by the state legislature. It is based in Diamond Bar, and is funded by a $4 fee for motor vehicle registration. Transport Topics


    FedEx Driver Admitted to Stealing Parcels for Gifts

    A contract driver for FedEx Corp. (FDX) stole packages worth about $14,000, using some of them as Christmas presents, the Associated Press reported Wednesday.

    The driver pleaded no contest to charges of grand theft in Los Angeles, AP reported.

    Family members suspected something was wrong when they received boxes bearing the FedEx logo, AP reported.

    The company mounted an internal investigation, recovering about $6,500 worth of goods, AP said. Books, video games, and an ultraviolet measuring device intended for Edwards Air Force Base were among the stolen items. Transport Topics


    Headlines From Today's A.M. Briefing

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