ANN ARBOR, Mich. (Nov. 12, 2002) — Con-Way Transportation Services yesterday said that effective Jan. 2, 2003, the company’s four less-than-truckload operating units will apply a “homeland security” surcharge on all shipments moving across the Canada-U.S. border, both northbound and southbound. The surcharge will be $8 per shipment, the company said.

Con-Way officials cited the September 11 attacks in 2001 and the subsequent cost of government-mandated changes in freight security at the Canada and U.S. border as the reason for the surcharge.

The four divisions making regular cross-border shipments are Con-Way Central Express, Con-Way Southern Express, Con-Way Western Express, Con-Way Canada Express.

“Those changes have included registration of each piece of equipment and each driver who crosses the border and mandated changes by both the U.S. and Canadian customs authorities concerning cross-border documents and security inspections,” the company said in a statement.”As a result of the changes the time to cross the border has increased, tying up equipment and lengthening trip times. Additional time is also spent in preparing shipments for customs clearance.”

Con-Way said it expects to participate in a security and customs clearance program titled Customs Trade Partnership Against Terrorism, or C-TPAT. Program requirements that have been discussed at C-TPAT meetings include high-intensity lighting, security cameras, perimeter fencing, high security rooms for freight not delivered, and more expensive trailer seals. Other requirements discussed include electronic control devices for more secure entry into service facilities, new computer systems to monitor and capture shipment identity and transfer of the information to government computers, increased personnel security work during applicant background checks, and the creation of data files on all employees engaged in cross-border traffic.

Con-Way has estimated the cost to implement the facility, systems and procedural changes discussed so far to be an additional $15 to $20 million US when put in place throughout its network of 426 locations.