John Perouty Joins Frederick Intermodal

om the Journal of Commerce –

John Perouty has joined Frederick Intermodal as vice president of business development. Frederick Intermodal handles the maintenance and repair of truck containers, chassis, reefers and dry vans. In his new role, Perouty will serve as part of Frederick Intermodal’s senior management team, overseeing day-to-day operations, as well as developing new business for the company.

Prior to his new role, Perouty has held multiple senior-level management positions in transportation companies across the nation.

Frederick Intermodal is a single source solution for maintenance and repair of domestic and international transportation equipment. Frederick Intermodal mechanics provide complete fleet services and reefer services in Texas, the Midwest and the Western United States both on the road and at any of their 10 shops.

Please view www.frederickintermodal.com for more information on locations and services. Frederick Intermodal is part of the IMC Companies family of brands. For more information on IMC Companies, visit www.imccompanies.com.

Frederick Intermodal wins BNSF contracts

From Memphis Business Journal

BNSF Railway Co. has picked a division of Memphis-based IMC Cos. to repair and maintain its equipment at its Southeast Memphis intermodal yard.

The Fort Worth, Texas-based railroad company awarded the contract to Frederick Intermodal for its Memphis and St. Louis facilities. Frederick sublet the Memphis contract to a fellow IMC Cos. firm, River City Maintenance & Repair. BNSF chooses intermodal equipment repair vendors every five years. IMC owns River City and Frederick Intermodal, which is headquartered in St. Louis.

The new contract started June 1 and has resulted in the hiring of five new mechanics, giving River City 18 mechanics in Memphis. That number is expected to increase to 27 in July.

“They won’t all be on this new contract, but they’ll all be at that ramp because of new opportunities and being able to display our product,” Tim Farrell, president of River City, says. “We’re busier than we’ve ever been.”

River City was making repairs at the BNSF facility for other customers before this contract.

River City would like to grow its business with BNSF, emulating what Frederick Intermodal has done west of the Mississippi in Houston and Fort Worth, Texas, Denver and Kansas City, Kan.

River City handles business for other companies in Nashville and Huntsville, Ala. However, for BNSF, it only handles Memphis repairs.

“We want to be outside of Memphis, too,” Farrell says. “We want to prove to them that east of the Mississippi, we’re the vendor of choice.”

What opportunties exist in Asia for Memphis' distribution and logistics firms?

From the Memphis Business Journal –

Jim Covington
Vice president of logistics
and aerotropolis development
Greater Memphis Chamber

FedEx has generated a three-hub strategy which is very enticing from the Asian standpoint because they’ve chosen Guangzhou as the hub for Asia. We’re working with Guangzhou to jointly look for leads for our businesses. If there is a business in Guangzhou which uses FedEx and doesn’t have an operation in Memphis, we’re trying to find out who they are and put them together with potential opportunities here. The same happens in reverse. If we have someone who’s interested in going to Asia, we would want to put them together with the Guangzhou people. It’s something we’ve been working on for some time. We did a similar formal agreement with Paris and we want to work out one with Guangzhou as well.

Katie George Hooser
Business development
IMC Cos.

Memphis’ infrastructure allows our city to have interconnectivity to Asia that provides important opportunities for our distribution and logistics firms. That interconnectivity is made possible by our unique ability to efficiently handle air freight shipments and our five Class 1 railroads. OOCL, a Hong Kong-based container shipping company, is Intermodal Cartage’s largest customer in the Memphis area. We transport hundreds of containers for OOCL a week. The majority of that freight is imports from Asia delivering to warehouses all over the Mid-South.

Richard McDuffie
COO
Dunavant Enterprises Inc.

There continues to be an opportunity to expand in logistics due to overall economic global growth. In the U.S., according to recent reports, the third- and fourth-party logistics (3PL and 4PL) markets continue to grow ahead of the overall global economy; however, the growth opportunities for international 3PL and 4PL companies are more robust. Wage pressures and fuel costs are beginning to have an impact, but with many products, there are still chances to source product and import into Europe and the U.S. At the same time, exports will continue to feed the growth in capitalism that is occurring in Asian markets. We feel some keys to delivering results in these areas include having the right business personnel to execute strategies; ensuring your customer contracts have limited liability exposure; and understanding all credit or currency risks involved.

Tina Newman
COO
Mallory Alexander International Logistics

Free Trade Agreement, a dollar favorable to exports, Japan’s devastation and the robust economic growth of many Asian countries contribute positively to the strength of the Memphis transportation community. As most are aware, U.S. cotton had a record year, and moving forward, we anticipate sustained growth in agricultural products, as well as plastics, chemicals, automotive and consumer goods. Key initiatives of near-product warehousing at both origin and destination, together with supply chain technology, will continue to provide the Asian continent increased visibility to the value of Memphis as a global logistics partner.

Frederick Intermodal of IMC Companies Wins Contract With BNSF In Memphis & St. Louis

From the Journal of Commerce
IMC Companies’ River City Maintenance & Repair Will Service the Memphis BNSF Facility

(MEMPHIS, Tenn.) – Frederick Intermodal, a member of the IMC Companies family of brands, was awarded an expansion bid with the Burlington Northern Santa Fe (BNSF) Railway to repair all damaged equipment in the Memphis, Tennessee, and St. Louis, Missouri, hubs for the next five years. Frederick Intermodal will utilize River City Maintenance & Repair, also a member of the IMC Companies family of brands, to service the Memphis BNSF facility.

“Our job is to support BNSF ramp operations by making sure that the chassis and trailers are repaired and available,” explained Frederick Intermodal president Joey Frederick. “By doing our job, cargo can be delivered on time – just one small part of the global supply chain.

“This is a wonderful opportunity to continue our relationship with BNSF,” Frederick added, noting that Frederick Intermodal is also a vendor for BNSF in Houston, Texas; Ft. Worth/Alliance, Texas; Denver, Colorado; and Kansas City, Kansas.

The contract began June 1 for both bids. Frederick Intermodal mechanics are already stationed at the BNSF facility in St. Louis, and River City Maintenance & Repair mechanics are at the BNSF facility in Memphis, Frederick noted.

Tim Farrell, president of River City Maintenance & Repair, said he is thrilled to be part of this contract.

“Anytime you have a five-year contract with a Class 1 Railroad, it’s a big deal,” Farrell said. “It’s a testament to the fact that we are more than our individual companies. We are partners in service, as we are part of a national family of brands that can service clients from coast to coast and beyond.”

Frederick Intermodal and River City Maintenance & Repair employ more than 150 mechanics, who perform maintenance and repair services to intermodal equipment providers throughout the United States. For more information about Frederick Intermodal and River City Maintenance & Repair, visit www.imccompanies.com and click on “Companies.”

Did you know?

From the Post and Courier –

Jeffrey Banton

BIRTH DATE AND PLACE: September 1963, Memphis, Tenn.

RESIDENCE: Daniel Island.

OCCUPATION: President of Atlantic Intermodal Services on Clements Ferry Road.

FAMILY: Wife, Debra; children, Blake, 17, and Rachel, 13; and dog Bennie, 4.

EDUCATION: University of Memphis, where I studied transportation and logistics.

TALENTS/HOBBIES: Fishing, running and exercising.

BIGGEST ISSUE FACING CHARLESTON COUNTY: The planning of the transportation infrastructure pertaining to the new port in Charleston.

IN MY SPARE TIME: I go to my kids’ sporting events.

IF I KNEW TODAY WERE MY LAST DAY ON EARTH I WOULD: Be with my family at church!

SOMETHING IMPORTANT LIFE HAS TAUGHT ME: The only time success comes before work is in the dictionary. A good work ethic, persistency and passion will lead to success.

I AM MOST PROUD of: A solid family and a strong business.

BEST CHILDHOOD MEMORY: Family camping, canoeing trips.

PEOPLE I ADMIRE MOST: Self-motivators. People who overcome major setbacks, yet still reach their goals.

EAST COOPER NEEDS: More vessels calling the port.

IF I COULD CHANGE ONE THING ABOUT THE WORLD TODAY: One person can’t change the world, but leading by a good example can start a positive trend.

Wizards bring excitement to Madisonville

From the Madisonville Meteor

Sweat poured from the faces of Mustang FCA players as they practiced their dribbling and free throws before a fund-raising basketball game May 11 with the famed Harlem Wizards.

“Do you know CPR?” quipped one Mustang player heading to the bench for a rest. Another leaned against the wall, breathing heavily, and said, “I’m already winded.” Sweat-stained towels draped shoulders and chair backs.

The fast-paced, entertaining game at the Madisonville High School gymnasium between the two teams moved from a halftime score of Wizards 43 and Mustangs 42 to an ending score of Wizards 95 and Mustangs 88. Nearly 1,000 adults and children watched and cheered from the bleachers.

But all the sweat and heavy breathing had a higher purpose than just fun and exercise for those playing on both teams. They were raising money to send local youth to the Fellowship of Christian Athletes (FCA) camp this summer at Texas A&M University in College Station.

“I was an FCA officer in high school, and as a youth pastor, I believe in the mission of the FCA,” said Joey Frederick, whose company, Frederick Intermodal, brought the Wizards to Madisonville. “And as a company, our mission is to be good stewards of what God has given us and provide clean family fun.”

Harlem Wizards player Arnold “A-Train” Bernard said the team also was invited to Madisonville because he and Frederick are long-time friends and played basketball together during their student days at San Jacinto College in Houston.

“This is a special game for me, because Joey and I go back a long way,” said Bernard, laughing. “We have a nice past, but I’m going to do my best to make him look bad. The most important thing about tonight is we’re going to have fun out there.”

The Wizards team consisted of Eric “Broadway” Jones, David “DP” Paul, Arnold “A-Train” Bernard, Rashaan “Rocket” Barner, James “Roadrunner” Tyndal and Kendric “Special K” Price.

Since 1962, the Harlem Wizards have entertained fans around the world with their skills as basketball players and master showmen, from show-stopping trick hoops to alley-oops. In addition, the team has raised more than $1 million for charities and organizations like FCA.

The FCA is an interdenominational, Christian organization that was founded in 1954 and has touched the lives of million of athletes in its history. It operates on countless school campuses and teaches the four core values of integrity, serving, teamwork and excellence.

Sandy Isbell, FCA representative for Madison, Grimes and Leon counties, said she appreciated the work done by the local churches, FCA Huddle Coaches and Frederick Intermodal in bringing the team to Madisonville.

Before the game, Mustang FCA players gathered under the hoops and took turns shooting baskets. The Mustang teams were divided into teachers and principals, first quarter; youth pastors, second quarter; coaches, third quarter; and high school alumni, fourth quarter.

“We’re doing this for the kids,” said Catherine Franke, a Madisonville coach for high school volleyball and junior high basketball and track. “I think it’s a good way to show them how to compete in a fun and classy way. And it’s wonderful to show the kids that good Christian athletes can compete.”

Feet pounded the court as players from both teams raced from one hoop to the other, hoping to score points. The Harlem Wizards demonstrated trick shots and hung from hoop rims, all the while engaging the crowd in their antics.

During intermission, Ryan Tannehill, the incoming senior quarterback who led Texas A&M University to wins over Teas, Oklahoma and Nebraska last season, spoke about his faith in God. Tannehill said God is blessing his life right now, but that could quickly change.

“I love playing sports, but it doesn’t last,” Tannehill said. “One day, both football and life will end for me. That’s why God is my rock. Everyone may abandon you, but he won’t. In fact, he sent his son to die on the cross for our sins, and that’s a true blessing.”

Tannehill said his favorite Bible verse is Colossians 3:23, which talks about working for God’s approval and not for man’s approval. Tannehill said he thinks about that verse when he feels unhappy with something in his life, and it motivates him to go out and do his best for God.

During the second half of the game, Tony Matthews, a seventh-grade math teacher at Madisonville Junior High School, sat on the bench and watched while his teammates struggled to keep up with the Wizards. Matthews played during the first half of the game.

“This has been tons of fun,” he said. “I’m glad the Wizards came out. I tried to keep up with them, but I have asthma and was huffing and puffing. Still, I had a lot of fun and they are super-nice guys.”

Mustang FCA players were:

Teachers and principals – Marc Hodges, Lori Hagaman, Pam Ghormley, Glenn Guderian, C.K. Smith, Tony Matthews and Shae Murphy.

Youth pastors – Josh Schwarz, Jonathan Pugsley, Jarred Ricks, Joey Frederick, Brandon Bales and Chad Huff.

Coaches – Sherah McPherson, Brian Thurmond, Daniel Mitchell, Brock Wardlaw, Justin Grimes, Catherine Franke, Jo Dorman, Jarrod Byrd and Jack Trosper.

Madisonville High School alumni – Brandon Cook, Brian McCloud, Pat Cooper, Kole Savage, David Delasandra, Wes Hammett and John Blakely.

Referees – Spencer Cook and Wade Phillips.

Drayage operations expand with traffic

From the Memphis Buisness Journal –

 An increase in container traffic is leading drayage operations, both locally and nationally, to expand.

Old Dominion Freight Line Inc. has opened a new container drayage site in Memphis, and Memphis-based National Drayage Services LLC is planning to double its business by the end of the year with new locations across the country.

The Intermodal Association of North America reports annual rail intermodal volume of 13.3 million containers and trailers in 2010, a 14.7 percent increase compared to 11.6 million in 2009.

Old Dominion, which is mainly known for its less-than-truckload operations, has been doing drayage business since the early 1960s. The drayage division mainly moves the ocean-going or rail containers to and from the ports, rails or container yards.

“With the response of the economy last year and continuing this year, at least from a transportation standpoint, we’ve decided to pick up where we left off in 2008, when we were putting together expansion plans,” Wayne Bersch, director of container operations for Old Dominion, says. “We started with Memphis because it is known throughout the United States, and probably the world, as being a transportation hub.”

The new drayage operation is located within Old Dominion’s 18.3-acre site at 3050 Carrier St., which also provides less-than-truckload and truckload domestic and international shipping services. The new service won’t mean new buildings on the site.

“Old Dominion typically overbuilds facilities to allow for growth,” Bersch says.

The service center, which has been in Memphis for more than 25 years, has 169 doors to handle shipments and currently employs 281.

The drayage facility will be staffed with five owner-operators at the start. Old Dominion is expecting to have 25 owner-operators by May 2012.

“The container drayage business is mostly owner-operators, which affords you a great opportunity to grow it quickly as well as shrink it as you need to,” Bersch says. “It really gives you a lot of flexibility.”

Bersch says Old Dominion likes Memphis’ central location, as well as its five Class I railroads, which the Association of American Railroads define as a railroad with operating revenue of more than $378.8 million.

“In Memphis, our focus is going to be on rail yards, but much of that rail business originates on ships,” he says.

What has been driving its decision to grow drayage operations has been strong imports into the U.S. as well as the export business showing signs of life. Exports typically move through containers, leading to an upsurge in domestic rail.

“We continue to see that as a growth market and we want to be part of that,” Bersch says.

National Drayage Services is looking to ride that wave as well.

The company has opened locations in Houston, Dallas, New Orleans and Mobile, Ala., so far in 2011. This growth brings it to 11 total locations across the country.

The company hopes to add Los Angeles, Oakland, Calif., and El Paso, Texas, locations in the third quarter.

“At the current pace we’re on, we could double in size this year, if not triple,” president Chris Moore says.

The company has 40 employees, not counting owner-operators.

Moore can see how Old Dominion and other companies would want to open or expand in Memphis, which has strong transportation assets.

Drayage business is driven by freight increasing.

“To me, it clearly seems the freight is coming back,” Moore says. “Consumption is up and more products are shipping. The gloom of a couple years ago is becoming more and more of a memory now.”

Executive of the Year – Chris Moore

From the Memphis Business Journal –

Christopher Moore, president of National Drayage Services, founded the company in 2008, in the middle of the recession. It was a risk that has paid off.

VITALS

Title: President

Company name: National Drayage Services LLC

What it does: Transportaion of international containerized freight

Employees: 40

Background: B.S. in economics/finance from Christian Brothers University

Age: 38

Company Website: www.ndsv.com

Most admired entrepeneurs: Anita Roddick, Henry Ford, Sarah Breedlove Mcwilliams Walker, Michael Dell, Mark George

BIG PICTURE

How’s business?: Feels like organized chaos, but nóo complaints. Things are going extremely well.

Biggest Challenge at the moment?: Managing our growth and expansions, while also tending to the normal daily business matters

What will change in the next year?: Our size due to growth, and hopefully the price of diesel fuel

How do you measure success?: Not like most people. The bottom line on financial reports is imprtant to measure so yu know where you stand. But I want to go home and rest each day knowing I gave everything I had to make NDS better.

BUSINESS MOVES

Reason for starting business: We saw a major opportunity. The market had a need for a unique service provider like we knew NDS would be. And the plan appears to be working out.

Most difficult part of decision: Preparing and executing the formal business plan

Biggest business strength: Reputation and relationships

Biggest Business weakness: Age. We’re still a very young company

Biggest risk: Starting a trucking company (which is already traditionally a tight margined business), but starting in the middle of the worst economic conditions in many decades

Biggest mistake: In some ways the timing of NDS couldn’t have been more perfect. But looking back, I would have loved to have seen us start this company two to three years earlier.

Smartest move: Investing much of our effords toward safety and compliance. It would be easy to solely focus on sales and growth. But dedicating efforts toward safety in the early stages has helped give us a firm foundation that we can grow on and it has reaped benefits on several fronts

Biggest Worry: I don’t worry about the external issues we can’t control. My biggest worries are th things we can control such as preventing mistakes and errors.

Turning Point: When we added the third and fourth location in the past year or two. It seems like the point in time was when the rubber met the road and we took off.

What do you wish you had known from Day 1?: There is so much I’ve learned that I wish I had known then. Most notably that it’s OK to say “no” and that it’s OK to take things slow sometimes.

WORK ROUTINE

Most challenging task: We’re in a service industry. The msot challenging thing we face is handling everyone’s needs at the speed they desire and the high-service level that we desire.

Favorite task: Making clients smile by resolving problems

Least favorite task: Telling a client or driver “no” or giving bad news.

Source of suuport in a business crisis: Psalm 121:1-2. If you get into any kind of crisis- be it business, family or financial- you bettter have more support than just something tangible or earthly.

DREAMS

Key goal to achieve: Having a truck count of 500 nationwide before our five-year anniversary and prior to my 40th birthday.

What’s in the short-term future?: We need to finish substantiating the “National” in our company name by opening a couple of locations on the West Coast. Internally I refer to it as our own West Coast offense.

Five-year plan: Continue to rapidly grow and regularly refire our core proccesses and procedures to ensure our foundation is firmi

First Choice for a new career: Maybe politics some day. But for now I love exactly what I’m doing and can’t even imagine doing anything else.

Intermodal mogul; Trucking company entrepreneur sought out small business to build freight company

From the Charleston Regional Business Journal –

Business started out slow for Atlantic Intermodal Services – even back in the heady shipping days of 2006 and 2007 – when Jeff Banton launched the Charleston based turcking company.

In retrospect, Banton’s slow start turned out to be good fortune.

After moving from Memphis, Tenn., where he was vice president of Intermodal CartageCo., to open the company, Banton spent the first couple of years trying to carve out a share of the drayage market locally and around the Southeast.

Many of his larger competitors had a hold on the shipping lines and heavy-volume customers. When Banton would make a sales pitch to those customers, all too often he got a smile and a handshake, but no deal.

So Banton instead focused on seeking out smaller customers. He worked with their brokers and freight forwarders and earned referrals within that industry.

“These guys may only ship three or four containers a month, but it’s everything to them,” Banton said.

Then the recession hit. Some of Banton’s larger and more established competitors saw their business tumble along with the volume of freight moving into and around the region. But with fewer and smaller customers, Banton did not have far to fall.

“Sometimes you make your best decisions when you have no other choice,” he said.

Other time, as his base of truck drivers grew, Banton said he was able to gain business from some larger customers as well. Early on, Atlantic Intermodal Services served about 15 total customers per week, he said. Now it serves about 60 or 70.

Banton’s career in transportation started in college when he worked for FedEx, which is headquartered in Memphis, his hometown. As a load master, his role was to calculate the center of gravity for FedEx aircraft based on the freight on board. Pilots used the information in setting flight paths, he said.

Banton said he found the work exciting and saw career potential in the transportation industry.

“I was alwasy interested in how something got from one place to another,” he said.

After graduating from the University of Memphis with a degree in logisitics, Banton continued working for FedEx until 1997, when he shifted his focus from small packages to international cargo and went to work for Intermodal Cartage Co.

In late 2005, Banton said he had the opportunity to move farther South and open Atlantic Intermodal Services as his own company under the umbrella of Intermodal Cartage Co. Banton said that relationship gives customers a broader network- about 850 trucks – while allowing his company to react with the agility of a smaller operation.

To start his company, Banton acquired existing facilities in Charleston, Savannah and Atlanta. Last year, he expanded to Jacksonville, Fla., and Charlotte.

Starting out, Banton could have located his headquarters in Charleston, Savannah, or Atlanta – the locations of the existing facilities he bought. Charleston was the obvious choice at the time.

“Back in 2005, Charleston was king of the ports, and it only made sense to move into Charleston,” Banton said. “And besides, it’s beautiful.”

In subsequent years, however, Charleston lost its crown as Savannah took away market share. Banton said that Atlantic Intermodal Services’ facility in Savannah became the catalyst for the company’s growth.

“The good news is that today’s leadership at the port (of Charleston) is reversing the trend, and Charleston is coming back pretty strong.” Banton said

With facilities in Charleston, Savannah and Jacksonville, Banton said he is ready for the increased shipping business expected on the East Coast once the expanded Panama Canal opens in the next few years. He’s hoping that port officials in Charleston and Savannah find the federal dollars needed to deepen their harbors to accommodate the larger ships.

“Everybody says the harbors need deepening,” Banton said, “Yeah, they do – both Charleston and Savannah.”

When the larger Panama Canal opens, Banton said the real competition won’t be between those port cities, despite current political wrangling.

“It’s going to be East Coast versus West Coast at that time,” he said.

Memphis cartage company springs for big inventory of triaxle chassis

From the Commercial Appeal –

Intermodal Cartage is jockeying for advantage in its niche of the Memphis transportation market by adding capacity to move heavier shipping containers.

The unit of Memphis-based IMC Companies recently bought 50 triaxle chassis for $1.25 million to augment service at area intermodal rail yards.

The purchase gives the company about 65 triaxles, which provide more efficient transportation options for customers by carrying heavier containers legally, said Katie George Hooser, business development manager.

The upgrade comes at a time when a push is on to increase U.S. exports. Agricultural commodities grown in Tennessee, Arkansas and Mississippi are a big export item and prime candidate for the new triaxles.

Triaxle chassis can improve efficiency and reduce emissions for transportation companies, though heavier loads have been criticized for putting more stress on roads.

“I would say that anything we can do that can increase the productivity of drayage or inter- or intra-city truck travel would be a good thing, provided it doesn’t come with an added cost to maintain the road system,” said Marty Lipinski, director of the Intermodal Freight Transportation Institute at the University of Memphis.

Intermodal Cartage, founded by Hooser’s father, Mark George, has 325 drivers at terminals in Memphis, Nashville, Dallas and Kansas City. It specializes in drayage, or movement of shipments in and out of railroad yards and ports.

“It’s a big investment for us,” Hooser said. “It’s exciting because we’ve been needing them for a long time,” she added.

“We just found out there was a need for that, and customers were looking for triaxles to handle overweight freight. We handle a lot of agricultural products, especially in Arkansas, and I think the number of those we’re handling has increased. Those sometimes are heavier shipments and may need a specialized chassis.”

A regular chassis with two axles can handle about 39,000 pounds. A triaxle, which has a third axle, can handle a container weighing about 47,000 pounds, or 20 percent heavier. The chassis, purchased from Pratt Industries, include 35 for 20-foot containers and 15 that handle either 20- or 40-foot containers.

“They’re red because we’ve changed all of our logos, we’ve changed our identity, and we want that to be reflected in everything we do,” Hooser said.

The company plans to use the new chassis primarily in the Memphis market, hauling containers to and from the five Class 1 railroads with intermodal facilities here: Burlington Northern Santa Fe, Canadian National, CSX, Norfolk Southern and Union Pacific.