UPS Creates Transport Services Unit

United Parcel Service has combined its logistics, truck leasing, freight brokerage and transportation management businesses to create its Transportation Services Group.

The group will operate as a separate division under the UPS Logistics Group, which continues to be headed by Dan DiMaggio. It will be based in Atlanta, where the parent company is also located.

The logistics group makes up the preponderance of non-package operations for UPS. In 1998, non-package operations generated revenue of $901 million, or about 3.6% of the company’s consolidated revenue of $24.8 billion, and had operating profits of $135 million.

The Transportation Services Group will consist of:

UPS Truck Leasing — full-service leasing, commercial equipment rental, contract maintenance and fuel services.

Worldwide Dedicated Services — dedicated contract carriage services.

Martrac — freight brokerage and refrigerated intermodal services.

Roadnet Technologies — vehicle routing and operations software technology.

SonicAir — same-day package and freight delivery.

Professional Services — transportation consulting services.

“Integrating our transportation capabilities enables us to bring greater value to the marketplace,” said Jim Thompson, senior vice president of the group. “Now, we can provide integrated transportation management for shipments of all weights and sizes, as well as a comprehensive range of specialized services.”