Six of the nation's largest transportation companies-Covenant Transport Inc, owner of refrigerated subsidiaries; J B Hunt Transport Services Inc; M S Carriers Inc; Swift Transportation Co Inc; US Xpress Enterprises Inc; and Werner Enterprises Inc, a van carrier with a temperature-controlled division-plan to merge their logistics business units into a commonly owned, Internet-based global transportation logistics firm, Transplace.com. The combined logistics businesses had revenues of $650 million in 1999.
Through Transplace.com, the companies intend to develop programs for the cooperative purchasing of products, supplies, and services and the achievement of other efficient synergies. Besides the current logistics business, each organization is contributing $5 million in cash for an initial total financing of $30 million toward the venture.
Headquartered in Dallas TX, Transplace.com will be a one-stop "supermarket for transportation solutions." The new company will offer a web-enabled transportation logistics platform to bring together shippers and carriers worldwide to collaborate on transportation logistics planning and execution efficiently.
Initial offerings will focus on truckload, refrigerated, and intermodal capabilities, but ultimately it will extend its services to include less-than-truckload, package and parcel, air, cartage, and home delivery. To address this growth potential, Transplace.com plans to establish partnerships and offer its services worldwide. Transplace.com owners alone represent 38,264 tractors, 91,531 trailers, and 22,152 intermodal containers operated by 47,981 truck drivers. Existing contracts between the six companies and their partner carriers represent more than 100,000 additional trucks.
The six owners have these equity stakes in the new venture: Covenant, 13%; J B Hunt, 28%; M S Carriers, 14%; Swift, 16%; US Xpress, 13%; and Werner, 16%. Completion of the combination will follow receipt of any necessary government approvals.
