Fall 2004 - Trailcon

Fall 2004Presented by Trailcon Leasing Inc. Volume No. 31Cavalier celebratessilver anniversary!Cavalier Transportation hascome a long way sinceGeorge Ledson founded thecompany as a one-man operationbased at his kitchen table.Now, 25 years later, it boasts astaff of 160, and a fleet of morethan 90 trucks and 175 trailersthat ply the highways of Canadaand the U.S. The modest kitchentable has been replaced by a stateof-the-artlogistics centre with200,000 square feet of storage spaceat the company’s sprawlingheadquarters in Bolton,Ontario....continued on page 2IN THIS EDITIONRememberingall the veteransProtect your assetswith V-TracCustomer ConnectionSylvite, a soaring successRiding the railsin Europeand much more!

eport onTRANSPORTATIONwhat’sINSIDEEditorial ........................................................3Tech Talk........................................................4Pitching In....................................................5Customer Connection ............................6On Track........................................................7Travel Tips ....................................................8Industry Notes ........................................10FYI ................................................................12Site-Seeing................................................12Frank Says..................................................14Boys & Their Toys ..................................14Calendar of Events ................................15©2004, Trailcon Leasing Inc. All rights reserved.This work –covered by the publisher's copyright–may be reproduced or copied in any form or byany means (graphic, electronic or mechanical,including photocopying, recording, through bulletinboards, CD ROM or any information retrievalsystems) with attribution given to the Report onTransportation.What our readers think of Report onTransportation is important to our sanity. If youhave any comments please take a moment tosend us a note. Information contained in thispublication has been compiled from sourcesbelieved to be reliable. While every effort hasbeen made to ensure accuracy and completeness,these are not guaranteed. No liability shall beincurred by Trailcon Leasing Inc. or by any contributor.Readers are urged to consult their professionaladvisors prior to acting on the basis ofmaterial in this newsletter.Report on TransportationDesigned and produced by: The M GroupCopywriting: Praskey Communications Inc.Published byTrailcon Leasing Inc.6950 Kenderry GateMississauga, ON L5T 2S7Tel: 905-670-9061Fax: 905-670-9066Web: www.trailcon.comEmail: trailcon@trailcon.comJanuary 2005 will mark Ledson’s49th year in trucking – he startedat Intercity Truck Lines as acredit clerk in 1957 – and he hasevery intention of stickingaround for his 50th. George isconfident that the future ofCavalier is in good hands, creditingits longevity to the fact thathe has hired “some really goodpeople.” Trucking is not only inLedson’s blood; it’s also in hisbloodlines. His son Brian isNational Sales Manager; sonGeordie is Vice-President,Operations; daughter VickiStafford is Vice-President,Resource Development; and herhusband Scott is ProjectsManager/IT – all the makings fora successful succession.In the meantime, Ledson continuesto be active in the industry.He recently completed a twoyearterm as chairman of theOntario Trucking Association.Being named chairman of the800-member organization was“like winning an Oscar,” heAll in the family: (from l to r) Son Geordie Ledson, George Ledson, daughter Vicki Stafford and Brian Ledson in picture below.enthuses. “It was an incrediblehonour.” And while he claims histerm was “made easy,” thanks tothe Association’s capable presidentDavid Bradley, he acknowledgesthat the industry facesmany challenges – the risingcost of insurance, truck safety,border issues, the impact of thestronger Canadian dollar on carrierswith U.S.-dollar accounts,and hiring and retaining drivers.Cavalier is addressing the latterby adding automatic-transmissiontractors to attract moredrivers, and providingprofit-sharing and RSP contributionplans to retain them.A long-time Trailcon customer,Cavalier leases trailers when itneeds to supplement its fleet ina hurry and doesn’t want to tieup capital, says Ledson.Away from the business, Ledsonoften trades one kind of horsepowerfor another. He is an avidequestrian who owns and trainsthoroughbreds – in fact, Cavalieris named after his father’sfavourite horse.Trucking will always be a passion.“I still like to smell the diesel.Trucking has provided me withthree meals a day for 48 years,and for that I’m thankful.”

EditorialRemembering all the veteransNovember 5-11has beendesignated“Veterans’Week.” This isthe time that hasbeen set aside for Canadians to“honour and remember our veterans,and all who served Canadaduring war, armed conflict andpeace,” according to the Website of Veterans Affairs Canada.Alas, V.A.C. appears to be sufferingfrom a bad case of selectivememory. Not only was it lessthan supportive in providingassistance to many veterans whowanted to attend the 60thanniversaryceremony of D-Dayin Normandy this past June, butit outright rejected a segment ofthat group.V.A.C. brought 60 vets to theceremony. However, according toits “Canada Remembers”Division, this group was accompaniedby: 19 RCMP, 18 ParksCanada reps, 20 members of theCanadian Forces, and 41 V.A.C.staff – a retinue of 98 versusonly 60 veterans! To add insultto injury, the federal governmenthad agreed to sponsor any WWIIvet to the tune of $1,000. So far,so good. However, the vets hadto make their own travelarrangements, and then submittheir receipts for reimbursement.Of course, by the time thatannouncement had been made,all the nearby accommodationshad long been booked by dignitaries,so the vets would havehad to commute long distancesto attend the ceremony – nosimple feat for someone in theirlate seventies or older.To make matters worse, the subsidydidn’t even apply to theDieppe veterans, who stormedthe beaches of Normandy in1942, losing 900 soldiers onCanada’s bloodiest day of theWar. However, they did not diein vain, despite what our governmentmight have us believe. AsLen Fortune, Assistant ManagingEditor of The Toronto Sun, put itin a commentary in that newspaperon August 26: “The Alliesgained valuable informationfrom Dieppe that made it possiblefor a successful invasion on aNazi-held Europe two yearslater.” Fortune, who attended theceremony, noted that QueenElizabeth II had reminded everyonegathered at Juno Beach that“lessons learned there (Dieppe)were life savers for thoseinvolved in Normandy.” Butneither Prime Minister PaulMartin, nor Governor GeneralAdrienne Clarkson, who spoke tothe same group of veterans, sawfit to acknowledge the sacrificemade by the Canadian soldierswho fought and died at Dieppe.When Trailcon contacted V.A.C.to sponsor two vets to attendthe D-Day ceremony, it was along and frustrating exercise thatwent like this. On May 12, myassistant called V.A.C. on itstoll-free line and inquired whatTrailcon would need to do tosponsor a veteran. A gentlemannamed Hugo said he would havesomeone from head office callher back to advise us.A week later, her call still hadnot been returned. My assistantcalled the toll-free numberagain, andwas told thata “travelinformationform” and a“securityclearanceform” neededto be filled outand submittedthat day. Myassistantexplained thatwe only wantedto sponsor some vets, and thatwe thought V.A.C. would have alist of those needing sponsorship.She was then told to callthe head office, where someonecalled Reanne told her thatV.A.C. was not planning anymore trips for veterans, but theycould make their own arrangements,submit the receipts afterwards,and receive the $1,000subsidy from the government(assuming, of course, they hadn’tfought at Dieppe). Reanne thenreferred her to the NationalHistory Society. This organization,a private charity, told herthat it was working to try to freeup flights and hotel space forveterans, but that any hotel thatwould be available would bevery far from the ceremony site,and the men would have tomake their own way there.Finally, my assistant contactedTrailcon’s travel agent, who toldher that all flights and hotelswere booked, but that she wasconducting a guided tour toFrance that included the D-Dayceremony. Although there wasno space left on the tour, anumber of veterans were travelingwith the group. At that point,Trailcon decided to sponsor twoof the veterans from her group,Bill Marshall and GeorgeMummery (see "Pitching In,"Report on Transportation,Summer 2004). But who wouldhave thought V.A.C. would do solittle to help us to honour a veteranin this way?This year, says the V.A.C. Website, it is “making a special effortto honour and remember thenearly 100,000 Canadian veteranswho served in Italy duringthe final two years of theSecond World War.”Nothing wrong with that, butthere is something wrong withrecognizing one group of veteranswhile shamefully excludinganother. Every one of the veteransfought for their country andfor our freedom, and they alldeserve our sincere gratitude.May they never be forgotten.As for the V.A.C., I think they’reoperating in a V.A.C.U.U.M.FALL 2004 - VOLUME NO. 313

TECHTALKProtecting your assetsCalifornia-based V-Trac Systems’low-cost GPS tracking systemsnotify owners of rolling assets ofa potential problem before itoccurs – whether it be the theftof a trailer or the failure of apart.Recently, it introduced theIntermodal Modular SecuritySystem design for both chassisand containers. The system canbe integrated into intermodalcontainer chassis for the purposeof daily automated locationchecks and operational efficiency,and can be expanded to includetemperature reports on retrofittedor customized axle hubs andbrakes. For example, hub temperaturesare set at two thresholds:the lower one indicates a warmingcondition that would signifylow oil conditions or the beginningof excessive bearing wear;the second is set at a point higherthan the first to give advancewarning of potential major damageto the race, hubs, or otherparts.The system is also able to monitorbrake wear and heavy use.Consisting of four independentyet integrated modules, the systemis engineered so that failureof one part does not necessitatereplacement of the entire system.The company’s 24/7 ResponseCentre diagnoses any problemswith or failure of any of themodules, and advises the client,while at the same time shippingthe replacement module for fast,simple field repairs.Another new product, V-Link-1T,protects cargo in refrigeratedfreight carriers. An extension ofthe basic Vlink1 theft preventionproduct line, V-Link-1T samplesthe temperature every 15minutes in the cargo area duringreefer operation. It transmits thehigh, low and average temperaturesas often as required, andsends instant alarm messaging tothe operations manager if a problemoccurs, such as out-of-rangetemperature or reefer failure.During non-operation of thereefer, the unit reverts to nontemperature-reportingmode,pre-programmed upon installation,to avoid the expense oftemperature transmissions whennot required.Extensive reporting and user-drivenmenus available on the company’sWeb site allow end usersto define whether they want tohave specific events simplyrecorded, or to be notified ofthem immediately, via e-mail orlive operator telephone call.Those with their own IT departmentscan also have data delivereddirectly into their databasesusing virtually any protocol.“ITS” time for fasterborder crossingsThe governments of Canada andOntario have appointed a teamto research and developstrategies for using IntelligentTransportation Systems (ITS) toimprove the flow of traffic at allinternational border crossingsbetween Ontario and the U.S.ITS technologies include camerasto monitor traffic, weather androad conditions, as well aselectronic sensors and detectorsembedded in the roadway togauge the speed of traffic. All ofthis information is passed alongto drivers through real-timechangeable message signs.Over the next 18 months, theteam will evaluate existingtechnology to determine how itcan best be used to keep driversinformed and better managetraffic. Regularly updated projectinformation can be found at:www.intelligentborder.ca.Warningfor wearydriversThe Driver Fatigue Monitor(DFM), from Pittsburgh-basedAttention Technology Inc., notifiesdrivers if they are becomingdrowsy, before the situationbecomes potentially dangerous.The portable device, whichmounts on the dashboard to theright of the steering wheel, has acompact video-based sensor thatmeasures slow eyelidclosure associated with drowsiness.If the DFM identifies thatthe driver is drowsy, the unitsounds an audible alert.The result of more than 10 yearsof research and testing atCarnegie Mellon University, DFMhas been validated by the U.S.Department of Transportation asbeing able to accurately measuredrowsiness. Pennsylvania-basedcarrier DistTech is currently testingit with its fleet drivers.4 REPORT ON TRANSPORTATION

PITCHING INTrotting out a cure for breast cancerFor the third year running, theTrailcon Trotters – 13 TrailconLeasing employees, family members,and friends – laced up theirsneakers to take part in the CIBCRun for the Cure to raise moneyfor the Canadian Breast CancerFoundation. This year, theTrotters raised more than$12,000, surpassing their 2003total of over $10,000.The team was especially thrilledby the participation of AnitaLombardi, the wife of one of ourmobile mechanics, NickLombardi. A breast-cancer survivor,Anita was the inspirationfor the Trailcon Trotters when theteam formed in 2002.Trailcon thanks all our employees,mechanics, customers, suppliers,friends, and family who donatedmoney to this worthwhile cause.The 170,000 Canadians who participated,donated, or volunteeredhelped raise $19.2 million forbreast cancer research andawareness programs, comparedwith about $17 million last year.Back row, from l to r: Donna Payne, Matt Watters, Pamela O’Brien, Trish Brisson, Anita Lombardi, Nick Lombardi.Front row: Sally Lamonte, Cathy Gardiner, Jim Wedgewood, Kim Nadas.Missing from photo: David Carter, Joan Nessman, Linda O’Brien.A little goes a long wayThe following letter was received by Trailcon Leasing.Many thanks to Trailcon Leasingfor their generous gift of $400 tothe summer camp program!Your donation to a Caledon childbrought light to an otherwisecloudy summer. Your gift broughtopportunities to feel the breeze,to see the trees and understandlife from a brand new perspective.This letter brings news of betterdays for 47 children who mightnot have gone to camp. Thankyou for seeing that this is a causefor all of us, an investment in thefuture and strength for thecommunity: our children. Somefeedback Caledon CommunityServices received:“I finally learned to swim.”“My kids had the opportunityto be carefree for one weekthis year.”“Thank you so much. The costof camp is beyond our reach.”Because of you, a child’spossibilities are endless! Again,many heartfelt thanks!Yours very truly,Debbie Malevris,Director of Resources,Caledon Community ServicesP.S. For more informationregarding our services, pleasevisit our Web site at:www.caledoncommunityservices.orgHbc Rewards communitiesHudson’s Bay Company hascreated what it calls thelargest community-basedfundraising program in thecountry with theintroduction of itsHbc RewardsCommunityProgram. The Program allowscommunity and charity groupsto register with Hbc so thattheir supporting members candonate Hbc Rewards pointsdirectly to help their community.Hbc customers can visit anyof the more than 500 Bay,Zellers, and Home Outfittersstores, or go online towww.hbcrewards.com/community,and simply link theirHbc Rewards card to thecommunity group to whichthey wish to donate theirpoints. Customers can allocatethe percentage of points theywish to donate. Communitygroups receiving the donationscan use the points to selectmerchandise or gift cards touse in support of fundraisingactivities for their community.Groups whosign up for theHbc RewardsCommunityProgram will receive up to80,000 bonus Hbc Rewardspoints to kick-start theiraccount.“For anyone who has everwanted to help their locallittle league team, school,hospital, shelter, or othercommunity group, the HbcRewards Community Programwill make it easier than ever,”says George Heller, Presidentand CEO, Hudson’s Bay Co.“We’re proud to offer thiscommunity-based initiativeacross Canada, in addition todonating over $11 millioneach year to charities acrossCanada.”Masonite raises funds to fight cancerTrailcon customer Masonite International swung into fundraisingin a big way with its 5th Annual Masonite Charity Golf Classic.Employees, customers, suppliers, and friends raised $130,000 insupport of the PhilipS. Orsino Facility forCell Therapy andHematology Centre.The Centre, namedafter MasonitePresident and CEOPhilip Orsino, performsspecializedtypes of bone marrowtransplants forleukemia and othercancer patients atPrincess MargaretHospital in Toronto.From l to r: Participants Deryck Kahn, Director of Inventory and Logistics, Masonite International;Peter Collins, Sales and Marketing Manager, Trailcon Leasing; Cathy Gardiner, Controller, TrailconLeasing; and Paul Bernards, Executive Vice President and CFO, Masonite International.FALL 2004 - VOLUME NO. 315

CUSTOMERCONNECTIONThe Sylvite Transportation Group team: (from l to r) Gord McNeil, Vice-President of Sales; Scott Beattie, General Manager, Reefer Division; Jodi Lester, Executive Sales Coordinator;Allan Ward, President; Barry Stevens, Vice-President of Operations; and Mike Krell, Senior Account Manager at Trailcon.SYLVITE – A SOARING SUCCESSHow many transportation companiescan claim to have movedinto new offices, doubled theirwarehouse space, established twonew divisions, and added 30 staff,all in 2004?Meet the Sylvite TransportationGroup, which has accomplishedall of this, and is poised for moreof the same in the coming year.The Sylvite Transportation Groupis a division of the Sylvite Groupof companies, which includesSylvite Agri-services, Sylvite Fuels,Sylvite Packaging, SylviteFinancial, and Sylvite Industrial.A mere two years old, SylviteTransportation Group was formedwhen Sylvite purchased NorrisTransport and opened a full-service3PL operation as a service for itscustomers and suppliers. In thatshort period of time, it hasalready become one of thelargest steel haulers in Ontario,transporting over 120 loads perday. Its fleet now boasts over 200pieces of equipment – including5-axle rack and tarp, sliders, 53-foot vans (both dry and reefer),bulk trailers, tankers, and fueltrucks – to enable the companyto provide customized logisticssupport and solutions for variousshippers, from steel to packagingto food, to name just a few.Following its latest growth spurt,the Sylvite Transportation Groupnow consists of three divisions:Sylvite Freight Systems (steel,van, reefers), Sylvite LogisticsSolutions, and SylviteWarehousing, all consolidated atthe Group’s new head office inBurlington, Ont. Besides morethan 90,000 square feet of warehousespace at the Group’s headquarters,the Warehouse Divisionhas over 150,000 square feet ofquality food-grade space in asecond location in Burlington.Yet another building is in theworks as well, to be announcedbefore year-end.With its new Burlington-basedhead office, Sylvite has strategicallylocated facilities acrossOntario, as well as distributionfacilities in Pennsylvania, Florida,and Kansas, giving the companyeasy access to all points throughoutNorth America and abroad.Founded in 1977, the SylviteGroup of Companies is a privatelyowned Canadian company thatoffers a diverse range of services.It is the largest independentCanadian-owned supplier offertilizer agricultural products. ItsAgri-services division offers planning,planting, grain-handling andstorage, while its Financial divisionservices the agriculture,industrial, transportation, andinvestment industries. Other divisionsprovide sourcing, handling,bagging, and distribution ofmaterials for both industrial andmanufacturing customers.“It has been a pleasure to workwith Al Ward, Barry Stevens andthe incredible team at Sylvite,"says Mike Krell, Senior AccountManager at Trailcon. "Watchingthem grow from a start up divisionto a successful business hasbeen both challenging and exciting.We look forward to continuingand expanding this partnership inthe future!”6 REPORT ON TRANSPORTATION

ON TRACKCN reports rise innet incomeCN recorded a healthy 34%increase, to $326 million, in second-quarter2004 net incomeover 2003. Operating incomewas $575 million, an increase of32% from year-earlier figures,while the operating ratio of65.5% was 4.6 percentage pointsbetter than the prior year’squarterly performance.“Our strong quarterly resultsreflected a comeback inCanadian grain traffic, marketshare gains as a result of goodservice, yield improvement initiatives,and improved profitabilityresulting from CN’s IntermodalExcellence (IMX) strategy,” saidpresident and CEO E. HunterHarrison.The quarter also marked CN’sacquisition of the railroads andrelated holdings of Great LakesTransportation LLC. In July, therailroad also completed a $1-billionacquisition of BC Rail fromthe British Columbia government.CN terminatesRoadRailer serviceCN has ceased commercialoperations of its RoadRailerintermodal service betweenMontreal, Toronto, and Chicago,due primarily to a strike inFebruary of this year by mechanics,clerks, and intermodal yardworkers.According to Today’s Trucking,many shippers shifted freightfrom rail and intermodal totrucks during the strike. Followingthe strike, some of the truckfreight extended into longercontracts.CPR Q2 revenuetops $1 billionStrong growth in five of its sevenbusiness lines pushed CanadianPacific Railway’s revenue past the$1-billion mark in the secondquarter of 2004 – a 10%increase over the same period in2003. The revenue increasehelped drive net income up146% to $84 million in the quarterended June 30. This compareswith second-quarter 2003 netincome of $34 million, whichincluded a special charge for jobreductions, an asset write-down,and network restructuring.Operating income in the secondquarter increased 19% to $221million, while operating ratio forthe three-month period was78%, a 1.7% improvement.Intermodal revenue grew by $21million, or 9%, in the secondquarter of 2004, on top of arecord second-quarter 2003.Progress continued on therailroad’s MaxStax initiative toboost efficiency and margins inthe intermodal business. CPR hascompleted about 80% of its programto convert its intermodalfleet to high-capacity doublestackfreight cars, and is on trackto achieve its goal of a 16% productivityimprovement on intermodaltrains.CPR posts key statson Web siteCanadian Pacific Railway hasadded carload and key performancemeasure reports to its Website. The measures include averageterminal dwell time, averagetrain speed, freight cars on line,and bill of lading timeliness.As of press time, 2004 totalweekly carload for intermodal(originated and received) rangedfrom 19,409 to 25,191, whileaverage train speed fluctuatedfrom 25.3 to 30.4 miles per hourfor intermodal, and from 22.0 to26.4 mph for total system.Capacity crunchreaches crisis“North America’s surface transportationinfrastructure – our networkof railways, ports, and highways– is headed for a capacitycrunch,” said Rob Ritchie, presidentand CEO of Canadian PacificRailway, speaking at the CPRConnections 2004 Regional andShort Line Conference inSeptember.The transportation network has notkept pace with economic growth,he said. “Far too many outdatedregulations and policies continue tosap the strength of our railways andother parts of our transportationsector.” He called for regulatory andtaxation changes that would allowrailways to increase their pace ofinvestment in their networks.China’s rapid manufacturing growthis a major culprit in the capacitycrisis. According to a report in TheGlobe and Mail, port bottlenecks inVancouver and backlogs on theintermodal rail network are causingdelays of 10 days or longer for trainshipments to other parts ofCanada, while growing truck volumesand inefficiencies atCanada–U.S. border crossings arecosting millions of dollars. Importsfrom China have been rising steadilyover the years. In the first sevenmonths of 2004 alone, they soaredalmost 25 per cent, to $12.6 billion,compared with a year earlier,according to Statistics Canada. Theonly good news is that someCanadian suppliers may be able tocash in on the offshore backlogwith promises of fast delivery.Intermodal trafficup, but trailerloadings downLoadings of intermodal freight –containers and trailers hauled onflat cars – for the second quarter ofthis year rose 11.9% to a recordhigh 7.1 million tonnes, accordingto Statistics Canada. Trailers, however,appear to be on a downwardtrend compared with containers,accounting for only 5.7% of intermodaltraffic for the period, downfrom the peak of 7.8% in the firstquarter of 2003.Intermodal loadings in June fell2.5% to 2.3 million tonnes,accounting for 9.6% of total tonnage.Similarly, loadings in Julywere slightly more than 2.3 milliontonnes and accounted for 9.7% ofthe total tonnage loaded. On ayear-to-date basis, intermodalloadings increased 3.1% to 15.6million tonnes.FALL 2004 - VOLUME NO. 317

RIDING THE RAILBy Alan Boughton, President, TrailconIn late September,my wife Wendyand I, along withanother couple,flew to Frankfurt,Germany, for a whirlwind tripto three European countries in10 days. While that might seemlike an overly ambitious agendafor such a short period of time,the efficient train system inEurope made it all possible –and even pleasant! Not onlycan you travel just about anywhereyou want by train, butyou can do it in record time.Trains zip along at speeds of250 kilometers per hour, andinvariably depart on time, rightto the second! For an extra $11or so, you can reserve a seat ina first-class compartment andreally travel in style and comfort.The meals on board areexcellent, but not cheap.We began our trip in nearbyHanover, so we could check outthe Hanover Truck Show, one ofthe largest in the world. TheMercedes-Benz display alonewas as big as some of ourentire shows! We learned that,while there are no speed limitson the Autobahn (highway) inGermany, trucks are allowedonly in the right lane, and trafficmoves smoothly and unimpeded.Truck drivers there worka shorter day than in NorthAmerica, andtrucking isconsidered askilled andhighly valuedprofession.Hanover is an interesting citythat dates back to the 10thcentury. During World War II,the old section of the city wasalmost totally destroyed.However, in the rebuilding,parts of the remaining originalstructures were transferred toform a “new old town” in thecity’s oldest part.From Hanover, we traveled bytrain to Interlaken, Switzerland,a picturesque resort town in theSwiss Alps nestled between twolakes. Towering over the town isthe famous Jungfrau – Germanfor “Virgin” – Mountain. Duringour stay in Interlaken, we took atrip on the celebrated JungfrauRailway, built in the late 1800s,to Europe’s highest-altituderailway station. At 11,333 feet,we enjoyed a spectacular viewof snow-capped peaks andglaciers. We also rented a carand drove north of Lake Thun,on scenic secondary roads thatwound through the foothills ofthe Swiss Alps. Our destinationwas Luzern, a medieval town onLake Luzern surrounded by theAlps. Curiously, we found thatmore people spoke English inGermany than they did inSwitzerland.

S IN EUROPEwere ample records to guide inthe restoration. That’s why thetwin onion-domed towers ofthe “Frauenkirche” – Church ofOur Lady – continue to dominatethe skyline to this day,though not without controversy.While my buddy and I choweddown and imbibed atOktoberfest, the twoladies took a side tripto Salzburg, Austria,about 150 kilometersfrom Munich, wherethey took in a fourhour“Sound ofMusic” tour. An eightpersonvan tookthem to the birthplace ofWolfgang Amadeus Mozart inOld Salzburg, and to locationswhere the story of the vonTrapp family was filmed. Theyalso visited the ancient fortressof Hohensalzburg – consideredto be the largest fortification inEurope – the magnificentBaroque Cathedral, and theshops in the old town, referredto as the “Altstadt.”All too soon, it was time toboard the plane, fortified withsome hearty German beer andlots of fond memories, back toToronto.Next on the itinerary wasMunich for – what else? –Oktoberfest, the largest festivalin the world. I can onlydescribe it as a lot of Germansdrinking a lot of beer and consuminga lot of meat and fishof every description. Not anideal pastime for abstainersand vegetarians, but plenty ofGerman “Gemütlichkeit.” I waspleasantly surprised by theabsence of high-rise buildingsin Munich. After the devastationof the Second World War,residents had voted by a narrowmargin to restore the cityto its original condition – andhence, no high rises. As theNazis had taken photos ofvirtually every square inch ofMunich before the War, thereSee ya laterIn sharp contrast to the efficiency of the trains in Europe, wenoticed an item in the newspaper recently noting that U.S.airlines are on pace to set a record for lateness. Late arrivalsnationally, at 710,000 for the first six months of the year, andlate departures, at 574,000, were both up about a third overthe same period last year.Can the cansWhile there’s plenty of beer flowing in Germany – manysmall towns have their own breweries – you won’t find any ofit packaged in cans. Instead, Germans quench their thirstfrom returnable bottles. The deposit on one beverage bottle isa whopping 1 Euro, equivalent to about $1.50. That’s a prettystrong incentive to return the empties for recycling.

INDUSTRYNOTESBan the “bottom feeders”: BradleyAs the Ontario Ministry ofTransportation (MTO) continuesto trumpet the results of itsongoing “blitzes” to improveroad-safety, Ontario TruckingAssociation President DavidBradley charges that, if theprovincial government wereserious about further improvingtruck safety, it would concentrateits enforcement efforts onthe “bottom feeders” of theindustry.He complains that the Ministryspends too much time inspectingthe majority of carriers thatdon’t pose a risk, instead of“putting the real problem companiesout of business.” Bradleyurges the government to introducea program of real competitiveadvantages for safe truckingcompanies, and recommendsthat shippers who use unsafecarriers be held liable for accidents.Operator’s Registration (CVOR)compliance improvementintervention, such as a warningletter, interview, audit, orsuspension due to poorroad-safety performance.During Operation RoadCheck2004, a three-day North-America-wide enforcement blitzheld in June, over 76% of thetrucks subjected to a fullmechanical inspection onOntario’s roads were in compliance.However, Nova Scotia hadthe best record for trucks, withan out-of-service rate of 13.9%,followed by Saskatchewan at14.1%. New Brunswick broughtup the rear, at 26.2%, followedby Yukon at 26.1%, and Ontarioat 23.8%. As of press time,results were still pending forOperation Air Brake, whichtargeted brake defects in trucks,and Ontario’s OperationCorridor, a 24-hour blitz alongMore carriers earn more moneyAn estimated 3,260 for-hiretrucking companies based inCanada earned annual revenuesof $1 million or more in the firstquarter of 2004, 10% more thanin the same quarter last year,according to Statistics Canada.Both the operating revenue andoperating expenses of these carrierswere up 14% from the firstquarter of 2003, while their operatingratio (operating expensesdivided by operating revenues)was unchanged at 0.95.The top 82 for-hire motor carriersof freight (Canada-based truckingcompanies earning $25 million ormore annually) generated operatingrevenues of $1.83 billion andexpenses of $1.73 billion in thesecond quarter of 2004, reportsStatsCan. Average per-carrierrevenue was up 5.2% over thesecond quarter of 2003, to $22.3million, while average per-carrierexpenses increased only 3.4% to$21.1 million.The operating ratio for thesecarriers was 0.94, compared with0.96 in the second quarter of2003, a significant improvement.According to an MTO pressrelease, provincial enforcementofficers conduct approximately125,000 commercial vehicle anddriver safety inspections, andover 250,000 commercialweight inspections every year.About 2,200 carriers annuallyreceive a Commercial VehicleHighway 401 and the Trans-Canada Highway. Both wereconducted in September.The MTO says it intends todevelop a nation-wide carriersafety ratings program thatwill publicly identify carrierperformances.Truck tonnage upTonnage carried by Canada-basedlong-distance for-hire carriersrose to 305 million metric tonnesof freight in 2003, up 3.9% from2002, reports Statistics Canada.Although domestic activitiesaccounted for 72% of the totaltonnage and 78% of the totalshipments, transborder movementsgenerated 48% of thetotal revenues earned and 52%of the total tonne-kilometers forthese carriers.10REPORT ON TRANSPORTATION

Trucking industry prepares toroll out food-safety programAs shippers of food productsbecome more vigilant aboutfood-safety standards throughoutthe supply chain, the truckingindustry is responding.The Canadian Trucking Alliance(CTA) has developed a foodsafetyprogram for carriersbased on the Hazard Analysisand Critical Control Point, betterknown as HACCP. This is aninternationally recognized systemdesigned to minimize therisk of food-safety hazards.Pillsbury and NationalAeronautics and SpaceAdministration (NASA) firstused HACCP in the 1960s toensure that astronauts had asafe food supply while in space.Now its principles can beapplied to all segments of thefood chain.CTA’s initiative got under waynearly two years ago, explainsRon Lennox, Vice-President,Regulatory Affairs. “TheCanadian Food InspectionAgency [CFIA] was encouragingindustry sectors to developHACCP-based food-safety programs,”he says. “We looked atit then, and we were starting toget calls already from carrierswho were saying shippers offood products were becomingmore and more interested incarriers who had HACCP inplace. There wasn’t a programout there, so we decided todevelop one of our own.”Throughout 2003, working witha consultant and some of thenational associations in the foodindustry, CTA put together aHACCP-based trucking foodsafetyprogram. It was approvedby CFIA, but had to be pilotedbefore it could be rolled out tothe industry.“About the time that we finisheddeveloping the program,Agriculture and Agri-FoodCanada put in place a new program,the Food Safety andQuality program,” says Lennox.“With funding from that program,CTA is now piloting thattrucking food-safety program.We have 10 carriers from acrossthe country who are actuallyusing the program and thefood-specific modules that wedeveloped, and integrating theminto their operations right now.”Lennox says the program is verydetailed. Besides addressingmajor issues such as temperatures,health, and hygiene, itcovers “everything right downto washing the truck and whatchemicals to use to deal withwhat pathogens,” he says.Once the pilot has been completedand any amendmentsapproved by Agriculture andAgri-Food Canada, the programwill be rolled out to the industry,possibly by the end of thisyear.StatsCan launches online databaseStatistics Canada recentlylaunched the “North AmericanTransportation Statistics” database,an online source for informationon transportation activity.It covers 12 specific areas ofinterest, including freight transportationand safety.For example, in 2000, transportationand transportationrelatedindustries accounted for15% of the gross domesticproduct in Canada, comparedwith 11% in the U.S. About 15.9million people, or 9% of theemployed labour force in NorthAmerica, worked in transportationand related industries.Over 259 million road motorvehicles traveled on more than8 million kilometers of road inNorth America that same year.Canada’s motor vehicle fatalityrate was 1.6 fatalities per10,000 road motor vehicles,compared with a rate of 1.9 inthe U.S. and 7.0 in Mexico.FALL 2004 - VOLUME NO. 3111

FOR YOUR INFOFYIThe quirks of perksAn article in The Toronto Starpoints out that the pay forCanadian CEOs of large publiccompanies is generally 21 timesthat of the average worker. Thatcompares with 17 times forhead honchos in Europe, and 10times for those in Japan.However, those figures pale incomparison with the U.S., whichwriter David Olive calls “groundzero in the latest epidemic ofcorporate malfeasance.” UncleSam’s CEOs are paid a whopping531 times what the averageworker earns.SITE-SEEINGwww.GasBuddy.comTired of paying exorbitant prices atthe pump?Check out GasBuddy.com to find the cheapestgas prices in your city. As prices change frequently, and may vary byas much as 20 per cent within only a few blocks, this site provides alive forum for consumers to post local recent low and high prices.The brainchild of a couple of guys from Saskatchewan who were fedup with price gouging, GasBuddy relies on a vast network of volunteersto keep an eye on prices in major cities across Canada, as wellas almost 200 cities in the U.S.We checked Toronto gas prices in a given 24-hour period, and foundthey ranged from a low of 75.4 cents a litre up to a high of 84.9cents – reason enough to patronize one of the lower-priced stations.There's plenty of other interesting information on the site as well,including a rather painful comparison of average prices today, bothin Canada and in your selected city, with those of a year ago. It'senough to give you a bad case of gas!33 broken promises – and countingWhile Frank Klees did not winthe Progressive ConservativeParty leadership – that dubioushonour went to John Tory – hiscampaign team did come upwith one of the more originalWeb sites. The site www.stopdalton.comoutlines 33 promisesthat beleaguered Ontariopremier Dalton McGuinty madewhile campaigning – andpromptly broke. These includeeverything from balancing thebudget, to capping hydro ratesuntil 2006, to the infamous “notax increases” (shades of thatnotorious line from then-presidentialcandidate Bush Senior –“Read my lips – no new taxes”– that played a part in hisdefeat four years later by BillClinton).The broken promises have ledsome wags to dub the partythe Fiberals.A stinker of a jobAnd you thought YOU had a bad dayat the office!While poking around for interestingtidbits, we came across an articlefrom The Globe and Mail aboutPopular Science magazine’s quest tofind the “worst job” in the scienceworld.The hands-down winner was “flatusodour judge,” two scientists whowork for a gastroenterologistresearcher and spend their daysinhaling “episodes of flatulence”from 16 research subjects who arefed quantities of beans.The runner-up was “stool sampleanalyzers,” who work on a researchproject on treatment for diarrhea.The third-place job entailed collectingbull sperm (don’t ask!).The 11th place winner will strike achord with Canadians. Ever since1975, the article points out, whenthe U.S. passed a bill to adopt themetric system, it has been the jobof “metric system advocators” tosell metric conversion to a countrywho has no interest in it.For some weird and wacky entriesfrom beyond the field of science,check outwww.worstjob.com.Wal-Mart cartpusher,anyone?12REPORT ON TRANSPORTATION

And the gold goes to ...private enterpriseThe 2004 Olympics were astark reminder of the federalgovernment’s shameless lack ofsupport for our dedicated athletes.But while the governmentsticks its proverbial head in thesand, corporations are steppingup to the plate and developingtheir own programs to assistour present and future athletes.Trailcon has been struck by thecontributions of at least two ofits customers. George Heller,President and CEO of TheHudson’s Bay Company,organizes a charitable golftournament that supports bothOlympic and CommonwealthGames athletes (see Trailcon’s“Report on Transportation,”Fall 2003).Michael Andlauer, CEO ofAndlauer TransportationServices Inc., sponsored threeathletes at this year’sOlympics, writing a poignantcommentary in the company’snewsletter about what theOlympics mean to him as aCanadian.When it comes to supportinglocal athletes, you might sayAndlauer has taken theBulldogs by the horn – he isalso Chairman of the Board andGovernor of the HamiltonBulldogs hockey team, an AHLaffiliate of The MontrealCanadiens. What makes theBulldogs unique is theirinvolvement in nurturing aspiringathletes in the community.For example, the team recentlylaunched Healthy HABits (as inthe “Habs”), a fundraising programin partnership with Weekof the Child, City of HamiltonCommunity Services, and theHamilton-Wentworth DistrictSchool Board that promoteshealthy living, physical activity,and nutrition within theschools.“On behalf of our Chairmanand Majority Owner MichaelAndlauer, the Bulldogs areproud and privileged to haveworked with such committedpartners to create a fundraisingand healthy living programwhich should have a long-lasting,positive impact on ourcommunity,” says BulldogsExecutive Director ofOperations Brian Lewis.As Duncan Milroy, the Bulldogs’feisty forward and HealthyHABits spokesperson puts it:“As a Hamilton Bulldogs playerwho concentrates on physicalfitness, I am extremely excitedabout this community programthat I know will help childrenand their schools in Hamiltonand the surrounding area.”Throughout the past season,Milroy and his teammatesvisited Hamilton-area schools,assisted with local minorhockey practices, participatedin the Bulldogs’ 2003 FoodDrive by loading food onto ATStrucks supplied for the occasion– the list goes on.The Bulldogs have started aYouth Fund/Foundation to promotethe creation of interactiveprograms involving education,physical fitness, and personalwell-being. The YouthFund uses the unique talentsand resources of the Bulldogsplayers, families, employees,and shareholders, as well asits NHL affiliate MontrealCanadiens, and local corporateand community partners toenrich the lives of children andyouth in the Greater Hamiltonarea.If the government is going toabdicate its responsibility toour young athletes, privateenterprise, led by visionarieslike George Heller and MichaelAndlauer, must step in to fillthe void.SUMMER 2004 - VOLUME NO. 3013

John Cyopeck, President and CEOof Canpar Transport LP, alwaysyearned for the 1962 ChevroletImpala Convertible that he hadowned as a teenager in Welland,Ontario. It took him 30 years, but in1994, he bought another one, identicalexcept for the colour. Whereas theoriginal Impala he owned was whitewith a red interior, the “new” one isblack with a red interior. He hadplanned to paint it, but then decidedit looked just fine the way it was.“My father is not a ‘car guy’,” says hisdaughter Kim Nadas. “He’s not one torestore or rebuild a car. He sticks tocleaning and polishing it and thentaking it out for the odd cruise, aslong as there’s good weather. He definitelygets a lot of admirers whenhe’s out for a drive! It’s a beautifulcar.”Nadas, who is Administrative Managerat Trailcon Leasing, is also a classic-carbuff, but describes herself as “moreinto muscle cars.” In fact, she met herhusband, Michael Nadas, at a CorvetteClub of Ontario function five yearsago. “I’ve always loved Corvettes,” shesays. Michael has owned his 1978Corvette for about 15 years, and haswon many awards for it. “My job is tokeep the rims polished,” she jokes.“So I got them high-speed polishedfor his birthday present a few yearsago, and now I never have to do themagain!”Kim is currently on the executive ofthe Corvette Club of Ontario. She saystheir love for classic cars has led tomeeting many new friends, and theyenjoy an active social life with theirfellow car enthusiasts.John Cyopeck and his daughter Kim Nadas pose with John’s ’62 Chevrolet Impala Convertible, and Kim’s husband Michael’s ’78 Corvette.FRANK SAYS...Judging by the bounce next government in the event of a nonconfidencevote, thereby avoiding an elec-in Frank’s step as heapproached my office tion for which the Canadian electorateand the smirk on his would surely punish those responsible.face, I knew that one of Frank roared with laughter recalling thethree things had happened:Frank had won der-to-shoulder, with love all around,three opposition leaders standing shoul-Lotto 649; his wife had plotting their strategy to overthrow therun away with the postman; or the Liberals. What an unholy alliance, to sayFederal political scene was making him a the least, chortled Frank: a separatist, alittle more goofy than usual. No luck on communist and a right-wing cowboy, supposedlyall on the same political page,my first two guesses, so Frank began histirade on the new session of Parliament poised to save Canada from the clutchesthat was about to begin.of Paul Martin and the other 134 Liberaldemons. It was no big surprise to Frank –It seems that Frank was more amused byor the rest of Canada – that this marriagethe events of September and earlywas on the rocks by early October. “SoOctober than by the actual sitting of thewhy bother wasting our time broadcastingsuch silliness?” I asked. Exactly theHouse. He couldn’t believe the “surprise”press conference called by Stephenpoint Frank was trying to make.Harper, Gilles Duceppe, and Jack Layton. Itseems they wanted to change the rules ofengagement to allow them to form theAs Frank says: “When Iturn on the TV and seethree stooges, I wantto see Larry, Curlyand Moe.”14 REPORT ON TRANSPORTATION

CALENDAR OFEVENTSNovember 7-9CTEA 41st AnnualManufacturers’ ConferenceFairview Le Château Frontenac,Quebec CityContact: CanadianTransportation EquipmentAssociationTelephone: 519-631-0414Web: www.ctea.on.caNovember 7-12Essentials of Supply ChainManagementHoliday Inn Select TorontoAirportContact: The Laurier Institute orSupply Chain & LogisticsCanadaE-mail: scmexec@wlu.caWeb: www.wlu.ca/laurierinstitute;www.sclcanada.orgNovember 10-13CITT 46th Annual Conference& AGMBanff Park Lodge, Banff, Alta.Contact: Nora Chan, CanadianInstitute of Traffic andTransportationTel: 416-363-5696, Ext. 22Web: www.citt.caNovember 11-12TMC Technical Conference& DisplayToronto Congress CentreContact: Ontario TruckingAssociationTelephone: 416-249-7401Web: www.ontruck.orgNovember 11-12OTA 78th Annual ConventionToronto Congress CentreContact: Melanie Kowdrysh,Ontario Trucking AssociationTelephone: 416-249-7401Web: www.ontruck.orgNovember 13-17Intermodal Expo 2004Henry B. Gonzalez ConventionCenter, San Antonio, TexasContact: Intermodal Associationof North AmericaTelephone: 1-866-438-3976Web: www.intermodal.orgJanuary 10-13Promat 2005McCormick Place South,ChicagoContact: Carol Miller, MaterialHandling Industry of AmericaTelephone: 704-676-1190E-mail: cmiller@mhia.orgWeb: www.promat2005.org/January 23-272005 COHMED (CooperativeHazardous MaterialsEnforcement Development)Doubletree Hotel FortLauderdale Oceanfront, FloridaContact: Commercial VehicleSafety AllianceTelephone: 954-524-8733Web: www.cvsa.orgFebruary 2Entries open for PMTC AwardsContact: Private Motor TruckCouncilTelephone: 905-827-0587;1-877-501-PMTCE-mail: info@pmtc.caWeb: www.pmtc.caMarch 3Seminar – Labour Issues thatAffect Fleet Operators“The Pub,” Molson BreweriesContact: Private Motor TruckCouncilTelephone: 905-827-0587;1-877-501-PMTCE-mail: info@pmtc.caWeb: www.pmtc.caApril 4-6Supply-Chain World–NorthAmerica 2005 Conference &ExpositionDisneyland Hotel,Anaheim, CaliforniaE-mail: info@supplychainworld.orgWeb: www.supplychainworld.orgApril 16-21CVSA 2005 AnnualConferenceHyatt Regency Albuquerque &Albuquerque ConventionCenter, New MexicoContact: Commercial VehicleSafety AllianceTelephone: 505-842-1234Web: www.cvsa.orgApril 28-30North American Truck Show2005Boston Convention & ExpositionCenterTelephone: 1-800-225-1577Web: www.naexpo.com/truckshow/May 1-4WERC Annual ConferenceAdam’s Mark Hotel, DallasContact: WarehousingEducation and Research CouncilTelephone: 630-990-0001Web: www.werc.org/conference/May 24-26PACex International – FoodProcessing, Packaging, MaterialsHandling/Logistics ExhibitionNational Trade Centre,Exhibition Place, TorontoContact: Maria TavaresTel: 416-490-7860, Ext. 219E-mail: mtavares@pacexinternational.comWeb: www.pacexinternational.comMay 31PMTC Ontario Spring GolfTournamentMarkland Wood Country Club,TorontoContact: Private Motor TruckCouncil of CanadaTelephone: 905-827-0587;1-877-501-PMTCE-mail: info@pmtc.caWeb: www.pmtc.caMay 31-June 3Transport logistic 2005New Munich Trade Fair Centre,Munich, GermanyTelephone: (49 89) 949-20660E-mail: info@transportlogistic.deWeb: www.transportlogistic.deJune 7PMTC Québec Spring GolfTournamentLes Quatre Domaines, Mirabel,Que.Contact: Private Motor TruckCouncil of CanadaTelephone: 905-827-0587;1-877-501-PMTCE-mail: info@pmtc.caWeb: www.pmtc.caJune 17-18PMTC Annual General Meetingand ConferenceWhite Oaks Conference Resortand Spa, Niagara-on-the-Lake,Ont.Contact: Private Motor TruckCouncil of CanadaTelephone: 905-827-0587;1-877-501-PMTCE-mail: info@pmtc.caWeb: www.pmtc.caFALL 2004 - VOLUME NO. 3115

Introducing . . .“Customer Connection”In this issue of “Report on Transportation,” weintroduce a new regular feature called “CustomerConnection.” As Trailcon Leasing services a widerange of customers in many different industries, thisfeature provides an opportunity to focus on theiroperations and highlight their accomplishments.First up is The Sylvite Transportation Group, whichhas established two new divisions, added 30 staff,doubled its warehouse space, and moved into newoffices – all in 2004! Read all about it on page 6.We hope you enjoy this new feature.6950 Kenderry Gate, Mississauga, Ontario L5T 2S7Tel: 905.670.9061 Fax: 905.670.90668240 Woodbine Ave., Markham, Ontario L3R 2N8Tel: 905.474.1690 or 888.513.7093 Fax: 905.474.3871For more information, please contactAlan K. Boughton at 905-670-9061or email aboughton@trailcon.com