Con-Way to create truckload division

Con-Way to create truckload division

   Con-Way Transportation Services, a super regional piece shipment trucking company, said it will start its own long-distance truckload operation in the first quarter of 2005 to take advantage of high growth the company is experiencing in its long-distance business.

   Con-Way has seen its average length of haul increase steadily to more than 700 miles since 1997, and President Gerald Detter said in a statement the company's long haul business is growing more than 10 percent annually.

   Con-Way has three regional less-than-truckload divisions and contracts with truckload carriers to provide full load, coast-to-coast service for its customers. The truckload operations are more efficient than handing off shipments from one regional operation to another for long haul moves.

   The new company, Con-Way Truckload, will provide linehaul service to Con-Way Western Express, Con-Way Southern Express and Con-Way Central Express on full loads of LTL shipments that need to move cross-country. Con-Way will continue to use its existing truckload partners, and use the new company to absorb the additional growth, Detter said.

   Con-Way estimates it will spend about $200 million this year to purchase transportation from other carriers.

      The company eventually plans to be big enough to market its service to external customers as well as sister Con-Way carriers, said Nancy Colvert, spokeswoman for parent company CNF Inc.

   'Formation of Con-Way Truckload will allow our organization to save money on line haul costs, protect our service with inter-company operations that operate in tandem with our current truckload vendors and allow us to build a potential truckload revenue base,' Detter said.

   Con-Way, which has annual revenues in excess of $2 billion, is in the process of ordering tractors and trailers, and hiring drivers. The company plans to add about 450 drivers during the first two years of operation.

   'A growing number of shippers want multiple supply chain services from one company and adding a truckload operation to our service portfolio provides Con-Way with a strategic way to manage costs and service while later providing truckload services for our customers,' Detter said.

   Con-Way Truckload will benefit from sharing back office support, maintenance facilities, mechanics and security personnel with the rest of the Con-Way carriers.