Truckload firms form Web logistics venture

NEW YORK (March 15, 2000) — Six U.S. trucking firms plan to merge their logistics units and form a Web-based logistics management venture in order to improve efficiency and make better use of available shipping capacity.

Covenant Transport, J.B. Hunt Transport Services, M.S. Carriers, Swift Transportation Co., U.S. Xpress Enterprises, and Werner Enterprises each will pay $5 million US cash to fund the new business, called Transplace.com. Combined, the units had logistics revenues of $650 million last year.

Transplace.com, based in Dallas, aims to bring together shippers and carriers worldwide to collaborate on logistics, said Jun-Sheng Li, chief executive of the new venture and the head of logistics at J.B. Hunt. Other trucking companies will be able to join as non-owner partners.

The site will serve businesses looking to outsource logistics functions. Customers could include retail merchants and department store chains, as well as home improvement, office supply, electronics, automotive, beverage and paper companies, and railroads.

Transplace.com will initially focus on truckload, refrigerated and intermodal capabilities, but will extend its services to include less-than-truckload, package and parcel, air, cartage and home delivery, the companies said.

The six companies hold the following equity stakes in the new venture: J.B. Hunt, 28%; M.S. Carriers, 14%; Swift, 16%; U.S. Xpress, 13%; Werner, 16%, and Covenant, 13%.