Friday, March 1, 2013

US Road Haulage Trucking Group Launch Intermodal Offering for North America

Mexico Targeted for Multimodal Growth
Shipping News Feature

NORTH AMERICA – MEXICO - Con-way Truckload and Con-way Multimodal, two subsidiaries of US road and rail freight haulage and global logistics company Con-way Inc., recently announced the launch of a new intermodal product that integrates the strengths and capabilities of both organisations with a view to servicing the North American market. While the new service will work with all major Class 1 railroads and offer full nationwide service for intermodal moves, Con-way is anxious to emphasize a unique capacity and differentiated capability for US - Mexico trade.

The integrated service will utilise the company’s expertise in Mexico through its Guadalajara headquartered CFI Logistica subsidiary, where it has 10 offices, an extensive drayage network and 40 years of in-country experience, together with Con-way Multimodal's resources, systems and freight procurement expertise.

Con-way Truckload today derives 35 percent of its revenue from shipments destined for or originating in Mexico. The company has a fleet of 2,700 tractors and 8,800 trailers, with more than 2,300 trailers operating in Mexico. Saul Gonzalez, president of Con-way Truckload explained the perceived benefits of the scheme saying:

"With changing global trade patterns and the rise in near-sourcing, Mexico is increasingly a location of choice for manufacturing and distribution. This new collaborative service with Con-way Multimodal allows us to immediately expand our portfolio for customers, adding an intermodal option to complement our well-established long-haul and regional over-the-road services. We are able to create additional value from our extensive network of Mexico sales and drayage operations, providing customers with dedicated capacity and new service capability.

"We believe this also helps both the US and Mexico further realize the promise and benefits from the North American Free Trade Agreement (NAFTA), facilitating job creation and economic growth for both countries. [Additionally] we recognise that our professional drivers are the most important part of our service offering and we will continue to focus our efforts on getting good freight for them. We will be able to match our drivers up with drayage opportunities such that they can earn additional income when they have availability between regional and long-haul over-the-road moves."

Ultimately, the joint service is intended to provide a new solution for customers of both companies for US - Mexico shipping, which the pair say is particularly timely as more companies locate manufacturing and distribution operations in Mexico and the need for capacity and reliable cross-border shipping services accelerates. Tommy Barnes, president of Con-way Multimodal, noted the advantages for customers of Con-way's fast-growing transportation brokerage division:

"This formalizes a true intermodal service product and dramatically expands our capability to arrange and manage transportation for US - Mexico traffic. And by combining our systems, expertise and resources with Con-way Truckload's network of drivers in the US and its long-established infrastructure in Mexico through CFI Logistica, we bring to market a unique collection of assets and value not available from any other organisation.

"We believe that this new service combines the best attributes of two strong organisations, and will offer shippers a trusted, reliable service that brings peace of mind, and helps our customers gain efficiencies in critical transportation services that support customer satisfaction and effective supply chain and distribution operations."

The new venture was welcomed by established customer Michael’s Stores Inc, whose Director of Domestic Transportation, Tim Nelson commented:

"Con-way Truckload has long been a trusted and reliable transportation partner. When our sales representative offered us the new intermodal option for non-time sensitive shipments, we were pleased to learn of yet another way Con-way is providing seamless door-to-door service to its customers. We look forward to taking advantage of this new offering."