Con-Way Makes Heavy Investment in Operations and Infrastructure
16 February 2000
Con-Way Western Express Makes Heavy Investment in Operations and Infrastructure
ANN ARBOR, Mich.--Feb. 14, 2000--to Add Facilities, Improve Service and
Handle Business Volume Expected as New Millennium Begins
Con-Way Western Express (CWX) released figures today showing its total infrastructure investments made during 1999. The less than-truckload freight carrier, based in Buena Park, CA invested more than $42 million to build six new major service centers, upgrade current service facilities, open new service centers and add 16 new zone operations to service rural and remote markets in the eleven western states where it operates.
"It's been a very busy year for us," said Chip Boone, president and chief executive officer of CWX. "We spent a large amount of time and money last year improving operations and building facilities to meet the growing demand for our service from new and existing customers. Our holding companies, Con-Way Transportation Services and CNF (CNF:NYSE) supported us when we presented our infrastructure plan in late 1998," said Boone. "Continued consolidation in the less-than-truckload motor carrier industry, population and industry growth in the western states, combined with customers focusing on more precise management of inventory with higher inventory turns and demand for next-day and second-day delivery service, were driving factors in our infrastructure investment plan. It all made sense, and we received the financial support to make it happen," said Boone.
New service centers were built in Fontana, Calif.; Denver, Colo.; Salt Lake City, Utah; Kettleman City, Calif.; Chula Vista, Calif.; and Blythe, Calif. The centers in Fontana, Salt Lake City and Denver replaced facilities that had become inadequate to handle the continuing business growth in these major western markets. Land was purchased in each location and new, state-of-the-art buildings were constructed. A total of 74 acres, 334 doors and 127,330 square feet of dock space were added to the CWX operations by these three projects.
Company officials said the facilities at Kettleman City and Blythe are unique major investments in remote parts of California because they are strategically located to match CWX's linehaul relay and freight assembly operations. They were constructed to specifically improve and extend the next-day and second-day service transit standards that CWX provides to most of its service territory. "Just-in-time delivery and supply chain management are no longer just buzzwords. Our customers run their businesses and manage their inventories relying on the speed and consistency of our operations," said John Labrie, vice president, operations at CWX. The investment in these facilities is a commitment by CWX to support this kind of service," said Labrie. The facilities add a total of 244 doors, 42 acres and 105,742 square feet of dock space to CWX infrastructure.
In late 1999 CWX added two new service centers in the greater Seattle market. "We opened a service center in Tacoma in November and one in Mt. Vernon in December," said Labrie. "Seattle is a growing market for us that has challenging geography. The mountainous terrain and the many bridges around Puget Sound and its tributaries requires we open these facilities to meet our own tough service standards."
There were sixteen new operations opened during 1999 in remote western locations. Called "zone" centers, they are located in St. George and Nephi, Utah; Great Falls and Missoula, Mont.; Lewiston, Idaho; Longview, Wenatchee, Moses Lake and Yakima, Wash.; Tillamook and Coos Bay , Ore.; Alamogordo, N.M.; Casper, Wyo.; Durango, Colo.; Ridgecrest, Calif.; and Winnemuca, Nev. "We have some really great people assigned to these small markets and they take total responsibility for servicing their customers. Our union-free flexibility is a key to our high service levels in these areas. It enables us to bring the same on-time, consistent service to these markets that is available in large, urban markets," said Labrie.
"The commitment to direct service coverage has always been a hallmark of CON-WAY," said Jim Gray, executive vice president, sales of CWX. "The large investment we make in our major urban facilities catches the most attention, but our zone operations are the service gemstones of our coverage capability. Supporting the service to these small locations is not easy. It takes some extensive communications efforts, including the training of the driver sales representatives. But we're convinced this is the value-added service our customers are looking for, whether they are a large company in an urban area trying to get their products to these remote communities or a small company located in a rural region needing to get their products to market," said Gray. "Orfino, Idaho; Evergreen, Mont.; Malaga, Wash.; Lincoln City, Ore.; Rincon, N.M.; Dolores, Colo.; and Glenrock, Wyo. are just a few of the remote western communities that receive the same CON-WAY service as Los Angeles, Phoenix, Seattle and Denver," Gray added.
Con-Way Western Express is a component of Con-Way Transportation Services, a $1.9 billion transportation company based in Ann Arbor, MI that provides time-definite and day-definite freight delivery and logistics services for commercial and industrial businesses. Within the CON-WAY family are regional less-than-truckload carriers Con-Way Central Express, Con-Way Southern Express and Con-Way Western Express; Con-Way Truckload Services, providing multi-modal, full-truckload shipping; Con-Way NOW, an expedited carrier specializing in emergency shipment service; and Con-Way Integrated Services, a contract supply chain execution service provider.
CON-WAY is a subsidiary of Palo Alto, Calif.-based CNF Inc., a $5.6 billion management company of global supply chain services with businesses in regional trucking, air freight, ocean freight, customs brokerage, global logistics management and trailer manufacturing.
Further information about CON-WAY and additional press releases are available via the Internet at www.con-way.com