Competition Watch (September 01, 2007)

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KRISKA HOLDINGS has reached a deal to assume the international cross-border truckload activities of MUIRS INTERNATIONAL. The company said the acquisition was made in recognition that industry consolidation is occurring. Kriska operates more than 400 power units.

PUROLATOR COURIER’S state-of-the-art facility in St. Laurent, Que. is now open for business. Purolator is calling the 160,000 sq. ft. hub the most efficient and technologically advanced of its kind in Canada, boasting the latest in package sortation capabilities and scanning technologies. The new Montreal hub is located on a 37.5-acre site located adjacent to the Pierre Elliot Trudeau International Airport. Working with a staff of 350 employees and automated conveyable sorting and scanning technology, the facility has the ability to process 24,000 pieces of conveyable freight per hour as well as provide customized solutions and enhanced service to customers. The hub is designed to accommodate future growth for the next several years.

SCHNEIDER GROUP OF COMPANIES and PRUDHOMME TRUCKS, both Regina-based trucking companies, are combining operations. The deal will see the creation of a $40 million company with 275 employees and 200 power units. Schneider will become the parent of the new organization. The two organizations currently offer an array of complimentary services. Prudhomme Trucks provides truckload van services from Montreal to Vancouver, while Schneider Group of Companies provides primarily flatdeck carrier service within North America, as well as truckload van services in western and central Canada, and into the southwestern US.

CANADIAN PACIFIC RAILWAY has extended its network by acquiring the DAKOTA, MINNESOTA AND EASTERN RAILWAY CORPORATION (DM&E). CP paid US$1.48 billion for the railway, expanding its network by about 2,500 miles and increasing access to the US Midwest. The deal also involves future contingency payments. The DM&E is the largest regional railroad in the US. It boasted 2006 freight revenues of US$258 million, which is forecast to grow by 9% this year. Its rolling stock includes 7,200 rail cars and 150 locomotives. CP will utilize the railway to serve Wyoming’s Powder River Basin – North America’s largest and most rapidly growing source of low-cost, low-sulfur coal.

CELADON GROUP has a new president and chief operating officer. Chris Hines is now driving the day-to-day operations of the Indianapolis-based, international truckload carrier. Prior to joining Celadon in his current role, he had previously served on Celadon’s board of directors since July 2006. Hines was past president of GE Capital’s TIP Trailer Services where he directed 125 branches and 1,100 employees representing annualized revenue of $450 million. Most recently, Hines was CEO of Tripmaster Corp., an onboard computer and asset management company primarily serving the trucking industry.

SCHNEIDER LOGISTICS has expanded its logistics capabilities in China by acquiring the operating assets of BaoYun Logistics. The company said the acquisition positions it to expand its existing supply chain consulting and transportation and logistics service offerings. Schneider Logistics provides transportation, warehousing, cross-docking, third-party logistics and consulting services focusing on the domestic Chinese market.

APPS TRANSPORT GROUP has taken over the terminal operations of WESTERN RELOAD, an intermodal service provider based in Calgary. APPS West has partnered with Western Reload for several years to deliver for its customers in Alberta and Western Canada. With this agreement, the Western Reload terminal will be integrated into the APPS Transport Group operations to service APPS’ Western Canada business.

SCHENKER OF CANADA has announced the coming launch of its new Courier Division with Kathy Kropf at the helm as director. The Courier Division will officially launch later in Q4 of this year. Kropf brings many years of logistics and transportation expertise to her new role. Most recently, she was managing director, Canadian world wide sales at FedEx Canada.

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