Celadon truckin’ to the Middle East

INDIANAPOLIS, (Feb. 11, 2004) — Celadon Group — the parent company of Kitchener, Ont.-based carrier Celadon Canada — has announced it is managing a trucking operation in Kuwait in order to provide transportation services in the rebuilding of Iraq.

Celadon will provide transportation, logistics, and management expertise and a Kuwaiti investment group is providing all of the capital needed to organize and operate the joint venture, which will run under the name Celadon East Transport Company, SAK.

According to David Shatto, executive vice-president of corporate development, Celadon will receive a portion of the venture’s operating income, a monthly management fee, and recovery of costs. In addition, over a period of time, the company will have the option to acquire up to 49 per cent interest in the venture.

John Hekman, vice-president of administration at recently-acquired subsidiary Highway Express in Richmond, Va. will direct the development of the Gulf region operations and will be responsible for the venture’s government and military contracting activities. Other than Shatto’s responsibilities for management oversight and Hekman’s assignment, no other employees or resources from Celadon’s North American operations will be engaged in the Kuwait operation.

Indianapolis-based Celadon is considered one of the largest transporters of truckload freight throughout the Canada-Mexico lane. In 1998 Celadon acquired Gerth Transport to give the company a stronger Canadian presence. It later changed the name to Celadon Canada in order to present “one face and one brand to customers.”