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— June 28, 2006

3PL Services

PWC Logistics Joins the Top 25 Global 3PLs
From Armstrong & Associates/Evan Armstrong
In 1997 PWC Logistics began providing logistics services and with 2005 revenues of $3 billion it made a rapid ascent to its current position as the 15th largest global third-party logistics provider. When you speak with PWC's straight-forward Chairman & Managing Director Tarek Sultan, you understand how this growth has been accomplished. Sultan has developed an entrepreneurial organization that is focused on customer service and facilitating global trade.
In 2005, PWC made three acquisitions including Santa Ana, CA based global freight forwarder GeoLogistics Corporation. GeoLogistics added extensive international transportation management capabilities to PWC's previously middle-eastern centric operations. "We will always look for acquisition opportunities that make sense in addressing the service needs of our target markets and customers", said Sultan. For new business, PWC targets customers trading with the middle-east, those with tradeshow/exhibition and project cargo logistics requirements, and customers with businesses in the high-tech, government & military, and oil & gas industry verticals.
While most logistics providers focus discussions on non-asset based business models, PWC takes an openly different approach. According to Sultan, "We use assets in markets where they are necessary. Instead of focusing on an asset versus non-asset business model, we focus on what we like to call an asset appropriate model. Where we need to, we will acquire assets to meet our customers' needs." For example, because of the U.S. Military's extensive supply needs for its bases in Iraq, PWC responded by expanding its warehousing and trucking operations with the necessary capacity and service capabilities needed to support the U.S. led operations. Every day, PWC runs approximately 150 truckloads of supplies into Iraq.
According to Al-Saleh, PWC has a goal of managing value-added warehousing operations within each major middle-eastern city supported by PWC's trucking network. He emphasized that PWC is not risk adverse and is willing to make substantial commitments in countries such as Iraq that are currently avoided by other providers. Al-Saleh said that PWC is currently looking at opening four warehouses in Saudi Arabia and sees growth opportunities in the European Union, especially in providing distribution services in Germany and the Czech Republic.
For the complete report, go to: http://mailman.3plogistics.com/

CaseStack and AtomicBox to Merge
The merger of CaseStack and AtomicBox Logistics will combine complementary geographies. AtomicBox's significant Midwest and West Coast presence augments the CaseStack footprint in Los Angeles, Portland, Chicago, Dallas, New Jersey, and Atlanta. The two companies have led the industry toward retail-driven consolidation and retail compliant fulfillment. Retailers and CPG manufacturers will now have even more ways to reduce costs and improve service levels by working with the new combined entity, which will take collaboration and technology to a new level.
CaseStack is a California-based logistics outsourcing company that provides web-based logistics technology, a national warehousing network, and transportation consolidation programs for the consumer packaged goods industry. AtomicBox Logistics is an Ohio-based international third party logistics company that provides tough-to-execute, high value-added warehouse services like pick & pack fulfillment serving customers within general merchandise, consumer and commercial products. AtomicBox operations are located in Cleveland, Atlanta, Los Angeles and Shenzhen, China.
The combined solutions of CaseStack and AtomicBox will bring increased supply chain technology, transportation consolidation programs and a larger regional warehousing footprint for current and prospective customers. The China distribution center provides both companies with the ability to further expand the service offerings at the front-end of the supply chain to include inbound logistics consolidation and value-added services from China - the growing manufacturing point for many companies.
http://www.casestack.com/

TNT Logistics Grows Its Global Business with Ford
TNT Logistics North America has been awarded a multi-year contract to run a tire and wheel sequencing operation in support of Ford Motor Company's assembly complex in Oakville, Ont. This plant will produce the new Ford Edge, due out for the 2007 model year.
TNT has supported Ford with manufacturing support services in Oakville for more than 15 years. This operation will help meet broadcast requirements for the plant and facilitate a more direct flow of materials for mounting and balancing before installation on vehicles. This operation is TNT's gateway to the flexible manufacturing process which is now part of the Way Forward Program efforts of Ford. The tire and wheel operation will begin in July 2006.
TNT Logistics North America has also renewed its largest contract to provide logistics services to Ford Motor Company's F-series truck manufacturing plant in Kansas City. Since 2002, TNT has provided for the delivery and sequencing of parts going into this assembly plant. The contract extension renews the TNT/Ford relationship at this operation until 2009. TNT is the largest logistics service supplier for Ford in Kansas City, providing sequencing and transportation from three facilities encompassing more than 200,000 square feet of warehouse space. In addition to the F-series business, TNT supports the U204 Program - the Ford Escape as well as the Mercury Mariner.
http://www.tntlogistics.com/

Penske Logistics Commits to More Brazilian Business
After recently acquiring a 100 percent stake in the Brazilian 3PL Cotia Penske, Penske Logistics has opened a new 130,000 square foot multi-client distribution center in São Paulo, Brazil, which will also serve as the company's new South American headquarters. The facility will initially be used to support Samsung Corporation's nationwide distribution of electro-electronics and cell phones in Brazil, an agreement born out of a new business contract signed between the two companies earlier this week. The contract calls for Penske to manage all aspects of Samsung's distribution network including, inbound receipt verification of imported products and shipments from factories throughout the country, as well as highway and air transportation for retail distribution.
Penske Logistics announced that Samsung has contracted with the firm to manage its nationwide distribution chain of electro-electronics and cell phones in Brazil. In this role, Penske Logistics is responsible for coordinating everything from inbound receipt verification of imported products and shipments from factories located in Manaus and Campinas, Brazil, to managing highway and air transportation for retail distribution.
The new São Paulo facility marks the company's commitment to growing the Brazilian logistics market and serving global customers with world-class services. It will serve a dual-purpose as the company's new office headquarters. In this facility, Penske Logistics will manage logistics operations for multiple customers, including integrating supply chains, executing packaging, inventory management and coordinating product transportation. This is the second multi-client warehouse for Penske Logistics and the company's eighth operation center in Brazil.
http://www.gopenske.com/

U.S. Bank To Acquire Scheider Payment Services and With POWERTRACK
U.S. Bank, the lead bank and subsidiary of U.S. Bancorp, and Schneider National, the nation's largest truckload provider, have announced that U.S. Bank will purchase Schneider Payment Services (SPS), a division of Schneider National, Inc. The acquisition is anticipated to close on July 1, 2006, at which time the new business will operate as U.S. Bank Freight Payment Services, rounding out PowerTrack's ability to service freight payment customers by adding a fully-managed solution. PowerTrack has traditionally focused on technology that can be used internally within a company to automate the pre-payment audit process, facilitating fast, accurate electronic payments.
The acquisition adds in excess of $7 billion in freight payments to the PowerTrack portfolio, making U.S. Bank PowerTrack the clear leader in freight payments. In addition, Schneider Logistics will utilize U.S. Bank Freight Payment Services and PowerTrack as the payment provider for its customers in North America. Terms of the purchase were not disclosed.
http://www.schneider.com/

Sherwood Food Distributors Renews and Expands Transportation Contract With Ryder
Sherwood Food Distributors, a privately held national distributor of fresh and frozen meat, poultry and deli products, has renewed its contract and expanded its fleet through Ryder's Full Service Lease (FSL) product offering.
Under the multi-year contract, Ryder supports Sherwood's transportation operations with a full service lease solution providing a combined fleet of more than 250 power units and refrigerated trailers. Ryder also provides contract maintenance services for refrigerated trailers owned by Sherwood. Ryder performs maintenance services for the leased fleet and for Sherwood's trailers on site at Sherwood's locations in Detroit, Michigan, and Maple Heights, Ohio.
Ryder's FSL and maintenance service offering is a customized transportation solution that provides customers with vehicles and a variety of support services including: emergency roadside assistance; preventive maintenance services; fueling; equipment evaluations and specifications; administrative support; and driver safety services.
http://phx.corporate-ir.net/

New Charter Flight Provides Increased Capacity For Year-Round and Peak Season
FedEx Trade Networks, a subsidiary of FedEx Corp. announced today the addition of an MD-11 charter to its existing international air cargo distribution service from Hong Kong to the US. Now offering two scheduled flights each week with Thursday and Saturday departures, FedEx Trade Networks China Connect(SM) provides year-round air charter service from Hong Kong to Chicago and onto New York, with ground service throughout the US and Canada.
This service supplements FedEx Trade Networks' existing cargo capacity on commercial flights from the same region. The additional charter provides augmented air capacity, reliable transit times, dedicated space to importers moving air freight and secure lift throughout the entire year, including critical capacity times such as peak season.
"FedEx Trade Networks is responding to customer demand by adding another chartered FedEx Express MD-11 to our China Connect service," said Ed Clark, president and CEO of FedEx Trade Networks. "We are providing our customers with consistent and dependable year-round service, unlike other providers that only offer additional lift during peak season."
Also, has launched a new supply chain service. The service is designed to enable customers to more efficiently manage high value and time critical inventory by using the Company's mix of networks that operate across FedEx's portfolio of companies. The service will focus on customers in the telecoms, semiconductor, biomedical and other high technology industries.
The FedEx networks that will be used for this service include FedEx Global Supply Chain Services for customer service, operational management centralised parts and device storage, distribution and replenishment; FedEx Kinko's and FedEx Express locations for the forward deployment and distribution of parts or devices; FedEx Express, FedEx Ground and FedEx Freight for next day shipping or other delivery options and FedEx Custom Critical and FedEx Express for urgent, same day service.
FedEx Critical Inventory Logistics personnel will work with customers to determine how to position their critical inventories throughout the FedEx network and develop plans to optimise their supply chains. Once the service is in place, orders are fulfilled by identifying the best sourcing locations and transportation option that meets the required delivery time or service level desired by the customer.
http://www.fedex.com/

Cat Logistics To Provide Warehouse Operations and Transportation Management to MHI and SCM
Caterpillar Logistics Services has announced an agreement with Mitsubishi Heavy Industries (MHI) and Shin Caterpillar Mitsubishi (SCM) to provide an integrated logistics solution in support of their respective service parts operations in Japan. Cat Logistics will provide warehouse operations, limited inventory management, transportation management, packaging and information technology to the two companies.
Cat Logistics will manage the construction of a leased 50,000 sq. meters logistics facility to be located in Sagamihara, Japan, near Tokyo, that is scheduled to be opened by February 2008. The agreement between the companies is the result of a 18 month study conducted by Cat Logistics which provided detailed recommendations to improve MHI's and SCM's Japan-based supply chains to world-class levels.
http://www.catlogistics.com/

Maersk Logistics Improves Supply Chain for Abu Dhabi Polymers
Maersk Logistics has been awarded a major supply chain consultancy contract by Abu Dhabi Polymers Co. Ltd. Maersk Logistics will provide a six-month consultancy service on the best supply chain concept for marketing their products in key markets including China, Middle East and East Asia. The project will focus on cost efficiency and shortest lead-times throughout the supply chain.
Major benefits for Borouge are a fact-based consultancy approach rooted in supply chain management experience and access to a global network of industry experts. The study is managed from Dubai, United Arab Emirates, to enable constant liaison between Borouge and Maersk Logistics.
The methodology for the consultancy service is based on the principles of Supply Chain Development as developed by Maersk Logistics. It is a unique value proposition for clients as it offers exclusive access to in-house developed modelling tools and consultancy with practical solutions and recommendations.
Borouge is a provider of innovative plastics solutions for customers throughout the Middle East and Asia-Pacific. Borouge came to the market as a groundbreaking partnership between ADNOC, the Abu Dhabi National Oil Company, and Borealis.
http://www.maersk-logistics.com/

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