Trucking company complains of selection process for Pan Am Games logistics provider

2014-01-13

TORONTO, Ont. -- The selection of DB Schenker as the official logistics provider of the 2015 Pan Am Games did not give a fair shot to local trucking and logistics providers, one local firm has complained.

In an interview with the Toronto Star, John Flynn, vice-president of sales and marketing for Seneca Transportation and Logistics, said that the selection process was slanted in favour of large multi-national corporations. He said only eight companies were invited to bid on the job and were asked to put up a minimum of $1 million in sponsorships.

“This is a low blow for Ontario-based logistics companies,” Flynn told the Star. “The problem is they just shut everyone out.”

DB Schenker, according to the Star, will offer more than $1 million in in-kind services.

“DB Schenker is owned by the German railroad (Deutsche Bahn) and it has got deep pockets,” Flynn said, adding that “we are in a really slow economy here in Ontario and we are fighting out for survival.”

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Logistics Veterans Introduce Truck Carrier Search Site

JOC Staff | Feb 27, 2013 9:32AM EST

Logistics veterans John Labrie and Sean Devine have launched buytruckload.com, a new Chicago-based service in the transportation procurement space, initially offering a search to help shippers find prospective carriers and a survey to improve internal processes.

The carrier search leverages a database of every carrier and broker in the U.S. and supports search by equipment, size, location, age, safety, authority and more. Registration for the site is free.

Before founding buytruckload.com, Labrie was president of CRST Expedite, president of Con-way Freight, executive vice president of strategy and enterprise operations at Con-way and president of Con-way Freight Western.

Devine was previously vice president of strategy and transportation purchasing at Echo Global Logistics, vice president of pricing and engineering at Con-way Freight, vice president of enterprise engineering at Con-way, vice president of consulting at Emptoris (now IBM) and vice president of products and services at CombinetNet.

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XPO Logistics Raises Funds, Says Results to Lag Forecasts

This story appears in the Oct. 1 print edition of Transport Topics. Click here to subscribe today.

XPO Logistics, which recently completed $125 million in additional financing, said that its third-quarter results won’t match analysts’ expectations.

XPO, Greenwich, Conn., disclosed details of the financing and the quarterly loss in recent regulatory filings.

XPO’s statement said the company expects an operating loss of $9.5 million to $10.5 million, with revenue in the range of $68 million to $72 million.

Earnings at XPO will lag expectations because of litigation, start-up and acquisition-related costs as well as weaker demand for expedited services, the company said.

XPO said the financing is being raised to help XPO make acquisitions, said a Sept. 21 report from John Larkin, an analyst for Stifel, Nicolaus & Co.

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Universal Buys Logistics Firm for $335 Million

Universal Truckload Services said it has completed the purchase of third-party logistics firm LINC Logistics for $335 million.

LINC primarily serves the automotive and manufacturing industries and provides truckload, expedited and freight forwarding services.

Universal’s announcement said the acquisition would add at least 20% to its 2013 earnings.

The plan for Universal to acquire LINC was announced on July 26.

Universal Truckload is ranked No. 39 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.

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C.H. Robinson Sets New Chemical Logistics Unit

C.H. Robinson Worldwide said Monday it has formed a new ChemSolutions division to provide logistics services to chemical manufacturing and distribution customers.

The unit will provide chemical bulk shipping, safety and sustainability, freight forwarding, customs brokerage, vendor and supplier compliance, global trade management, and multi-modal transportation to chemical shippers, C.H. Robinson said in a statement.

“Chemical logistics is a perfect fit for us, as C.H. Robinson has a long history in specialty logistics ranging from time-sensitive products, produce, high-value shipments and project business,” said Taylor Nicks, ChemSolutions’ manager.

“Because of the inherent risks in transporting chemicals it is imperative that chemical manufacturers align themselves with logistics providers that have industry expertise in handling chemicals and programs in place,” he said in a statement.

C.H. Robinson ranks No. 6 on the Transport Topics Top 50 list of the largest logistics companies in the United States, Canada and Mexico.

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BTS Logistics Buys Trade Show Unit

Wheaton Van Lines, which acquired Bekins Van Lines earlier this year, has spun off Bekins’ former trade show business to newly formed BTS Logistics, the company announced.

BTS, Warrenville, Ill., did not disclose terms of the transaction in which David Caruso, who also is CEO of a Bekins agency, acquired the moving company’s Bekins Tradeshow Services.

“With over 30 years of experience in moving, relocation and the tradeshow business, I am firmly committed to taking Bekins Tradeshow Services to the next level of success,” said Caruso, who heads Bekins A-1 Movers.

BTS will operate its own fleet of 68 tractors and 125 trailers, while also having the ability to use Wheaton/Bekins equipment when needed.

The trade show business accounted for more than 20% of Bekins Van Lines revenue last year, said Lance Grooms, senior vice president of BTS Logistics.

Among the services being offered are pre-show planning, the transportation, warehousing and exhibition of trade show products. In addition, distribution and installation services are offered as well.

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FedEx Completes Brazilian Logistics Acquisition

FedEx Corp. said it completed its acquisition of Brazilian logistics firm Rapidão Cometa Logística e Transportes S.A.

Terms were not released about the deal, first announced by FedEx in May. Rapidão Cometa generates about $500 million per year in revenue. 

FedEx said the acquisition will extend its reach in Latin America and gives its FedEx Express unit access to a ground network of 45 branches, 770 vehicles and trailers.

FedEx earlier this year bought package delivery companies in France in Poland.

FedEx Corp. is ranked No. 2 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.

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TomTom launches latest version of Logistics map for truck, fleet operators

SAN DIEGO, Calif. -- Navigation systems manufacturer TomTom has launched the newest version of its Logistics map product designed specifically for truck and fleet operators.

“TomTom Logistics enables a safer and more efficient operation of fleet vehicles and powers solutions that demand highly accurate and detailed content,” says Eszter Pattantyus, vice-president of maps. “By leveraging this precise data, TomTom can help operators of large vehicles avoid striking a low bridge or accruing a large fine for carrying an oversized load.”

The TomTom Logistics product features include:

• Dimensional restrictions totalling more than 1.6 million miles in the US and 225,000 miles in Canada;

• Designated truck routes for more than 400,000 miles in the US and 60,000 miles in Canada;

• Operating bans on idling or jake brake usage totalling more than 180,000 miles in the US and 80,000 miles in Canada; and

• Critical last-mile content required to get drivers to their final destination.

TomTom’s product is enabled by ProMiles, which provides context in interpreting and applying truck restrictions. The TomTom Logistics product appends to the standard map product and can be merged with other TomTom enhancement products to enable truck-relevant POI content as well as warnings for curves or steep grades, the company said.

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Caterpillar Completes $750 Million Sale of Logistics Unit

Caterpillar Inc. said Wednesday it has completed the $750 million sale of the majority stake in its third-party logistics business to Platinum Equity.

Under the deal, which was first announced in May, Caterpillar sold a 65% stake in Caterpillar Logistics Services to Platinum Equity, a private equity firm. Caterpillar retains a 35% stake.

Platinum will establish the business as a standalone company under a new brand that will be announced at a later date, Caterpillar said in a statement.

The sale does not impact Caterpillar’s manufacturing logistics and transportation operations and Cat brand parts distribution, which will continue as core businesses within Cat Logistics.

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TT Logistics 50 Now Available Online

The 2011 Transport Topics Logistics 50 listing of the top U.S. and Canadian logistics companies is now available online.

Click here to download the 2011 Transport Topics Logistics 50.

By Transport Topics

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North East Expedite Logistics Acquired by Action Products

Holding company Action Products International Inc. on Wednesday announced its acquisition of North East Expedite Logistics, a provider of transportation and logistics services on the East Coast.

NEEL will operate as a wholly owned subsidiary of APII and the existing staff at NEEL will be retained, Action Products CEO Gary Polistena said in a statement.

He also said the company’s “first order of business” will be to move away from the traditional terminal and paper tracking system to fully cloud-based supply chain technology.

Even though APII is not focused directly on logistics, NEEL adds cash flow and improves APII’s balance sheet and financial position, Polistena said.

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Radiant Logistics Buys Isla International

Third-party logistics provider Radiant Logistics will acquire Isla International, a company that specializes in shipments between the United States and Mexico, for $15 million.

Under the terms, Radiant will pay $7.7 million in cash at closing, expected by Dec. 31. The buyer also will pay $1.3 million three months after closing and $6 million more in cash and stock, based on Isla’s future performance.

Isla generated about $3 million in earnings before interest, taxes, depreciation, and amortization on $25 million in sales for the 12 months ended June 30, Radiant added, and is expected to contribute the same amounts annually.

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GE Opens Energy Logistics Center

General Electric Co. opened a new logistics center in Olive Branch, Miss., to distribute replacement wind turbine parts and solar technology components to customers in North and South America.

The facility will provide additional space to assemble parts for specific projects and is located near a FedEx Corp. hub to allow for faster delivery, company officials said.

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UPS to Acquire Italian Logistics Firm

UPS on Thursday announced an agreement to purchase Pieffe Group, an Italian pharmaceutical logistics company. Terms were not disclosed.

Pieffe offers storage, distribution and cold chain services to pharmaceutical companies, UPS said in a statement.

UPS said the acquisition supports its efforts to better serve its growing customer base in the pharmaceutical, biotech and medical device industries. The acquisition adds two healthcare distribution facilities to UPS’s global network, one in Milan and one in Rome, the company said.

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XPO Logistics Posts Loss; Sets Executive Appointments

XPO Logistics posted a third-quarter loss, named seven new senior executives and said it was targeting multiple acquisitions in the logistics and freight brokerage field.

The $44.4 million loss was tied to dividends and preferred stock issued after investor Bradley Jacobs took over the CEO position earlier this year after providing $150 million in capital to the former Express-1 Expedited Solutions.

Excluding the charge, net income was $190,000, an 89% decline from the 2010 quarter. Revenue climbed 6.6% to $47.8 million, the company said Monday.

“While our overall operating results in the quarter were mixed, we’re encouraged by the opportunities to enhance the earnings power of all three of our business units,” Jacobs said in a statement.

“We have an extensive plan in place to expand XPO through acquisitions, organic growth and the optimization of our operations. We plan to grow super fast,” he said.

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Echo Global Logistics' 3Q Income Increases

Echo Global Logistics said its third-quarter profit grew 30.2% to $3.4 million, or 15 cents per share, from $2.6 million, or 12 cents, a year ago.

Revenue rose 40% to a record $159 million, the Chicago-based third-party logistics company said late Thursday.

Echo also reported record shipment volume of 356,000, a 30% increase from a year ago.

In a statement, CEO Doug Waggoner said the company expects to see approximately 40% year-over-year growth heading into the fourth quarter.

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Radiant Logistics Reports Lower 4Q Earnings

Radiant Logistics, a third-party provider of airfreight and other services, said its fiscal fourth-quarter net income was $581,697, or 2 cents a share, down from $844,278, or 3 cents a share, a year earlier.

Radiant said in a statement the results for the period ended June 30 included $139,000 in one-time costs, as well as $583,000 in expenses related to an acquisition.

The company, whose brands include Distribution By Air, Airgroup, Adcom Worldwide and Radiant, said revenue increased by nearly 75% to $70.9 million in its fourth quarter, and net revenue, or sales minus the cost of transportation, increased more than 60% to $21.2 million.

For the full year, net income was $2.86 million or 9 cents a share on $203.8 million of revenue. The company expects earnings to improve to $3.8 million in 2012.

Radiant also announced the opening of a new office in Nogales, Ariz.

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