Competition Watch (September 01, 2006)

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WELCOME TO COMPETITION WATCH, a new section in Motortruck Fleet Executive designed to help you keep an eye on your competitors. Come to this section every issue for the latest news on mergers and acquisitions, new service offerings, boardroom changes and other key developments.

BISON TRANSPORT migrates to newest Calgary transportation hub

As Calgary continues to swell with growth, a new region on the city’s edge in southeast Calgary is beginning to have the makings of the latest transportation hub for the growing city. Bison Transport has found a home for its 40,000 sq ft Calgary terminal operations on Wrangler Rd., a stone’s throw away from the city limits off of 84th Street SE.

In March, Bison was awarded the Grand Prize Winner of the Truckload Carriers Association 2005 National Fleet Safety Award in the over 25 million miles category. The company has made driver training a big part of the new Calgary facility. The terminal has been equipped with an extensive training and driver development centre. Situated just outside of a classroom and computer room will be a full tractor-trailer driver training simulator. To utilize the simulator to its fullest potential, Bison is looking at partnering options with the Alberta Motor Transport Association to make the simulator available for shared usage among the association’s members.

The new 33-acre plot on which the terminal is built has also given the Calgary operation an opportunity to expand its in-house capabilities. The new centre includes cross-dock and trailer storage facilities, a full-service maintenance shop, and inspection shed with a fuel island expected to be completed in the near future. – Steven Macleod

MULLEN TRUCKING accepts resignation of vp David Mullen

David Mullen has informed the Mullen Group Income Fund that he will be relinquishing his position as vice-president and business unit leader of Mullen Trucking, one of the fund’s independently operated business units. Mullen has been in the Mullen organization for more than 25 years. Mullen has decided to pursue other interests but has agreed to make himself available through December of this year on a consulting basis and thereafter as the need arises.

TRANSFORCE completes purchase of Howard’s Transport

TransForce Income Fund has completed the acquisition of Howard’s Transport Services Inc. Generating annual revenues of approximately $20 million, Howard’s Transport Services is a specialized trucking company with a fleet that moves a variety of heavy oilfield related equipment, including drill rigs. The company’s customers include drilling companies, oil and gas companies and oilfield service companies. It is headquartered in Stony Plain, Alberta, and has operated in western Canada since 1979.

The acquisition increases TransForce’s participation in transportation services for the oil and gas exploration industry in Western Canada and adds to the Fund’s capabilities in the heavy-hauling segment. Rendel Elock will be general manager of Howard’s Transport, with current president Howard Moeller remaining in an advisory role for the next year.

CONTRANS INCOME FUND acquires Cornerstone Logistics

Contrans Income Fund has completed the acquisition of Cornerstone Logistics Inc.

Cornerstone is a third-party logistics provider with locations in Oakville, Ontario and Buffalo, New York. Cornerstone recorded revenues of approximately $24.3 million in the twelve month period ended March 31, 2006. Contrans will operate Cornerstone as an independent operating unit from its current offices with its existing complement of management and staff.

UPS opens $80 million logistics centre in Ontario

UPS has opened an 800,000-square-foot logistics campus in Burlington, Ont., for UPS Supply Chain Solutions. The second largest UPS logistics facility in North America, the Burlington complex was built at a cost of $80 million.

The new multi-client campus expands UPS’s supply chain capabilities in Canada and links with UPS Canada’s transportation network of package and freight services. It will provide order fulfillment operations; critical parts deployment, and freight receiving and shipment preparation for multiple clients using warehouse management, shipping and international technology platforms.

Two buildings currently comprise the campus, which also is the Canadian headquarters of UPS Supply Chain Solutions. A 600,000-square-foot distribution centre geared to the logistics needs of consumer goods and high-tech businesses spans the equivalent of six Canadian football fields. The second building is a specialized 207,000 sq ft healthcare centre focused on the needs of pharmaceutical and medical device industries.

FEDEX completes acquisition of Watkins Motor Lines

FedEx Corp. has completed the $780 million cash purchase of the LTL operations of Watkins Motor Lines and certain affiliates. The operations of Watkins Motor Lines and Watkins Canada Express, Watkins’ LTL carrier in Canada, which together include more than 140 service centers and more than 14,000 tractors and trailers, will be re-branded FedEx National LTL and FedEx Freight Canada, respectively.

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