US-based Celadon Group has been awarded a managing contract for a trucking operation based was formed to provide transportation services to suppliers involved with the rebuilding efforts in Iraq. The joint venture will operate under the name Celadon East Transport Company.
The joint venture was formed by Celadon and a Kuwaiti investment group, with Celadon providing transportation management knowledge and the Kuwaiti investment group providing all of the capital needed to organize and operate the joint venture.
"Under the arrangement, Celadon is to provide all operational, marketing, logistics, and management of the venture,” said Executive Vice President of Corporate Development, David Shatto. “In exchange, we are to receive a portion of the venture's operating income, a monthly management fee, and recovery of our costs. In addition, over a period of time, we have the option to acquire up to a 49 percent interest in the venture. The Kuwaiti investment group has agreed to provide all funding for the joint venture, including all start-up costs, capital investments, and operating expenses," he added.
Celadon Group is a truckload carrier that operates in the US, Canada and Mexico. Celadon is also the majority owner of TruckersB2B, which is a provider of cost benefits to more than 15,000 member fleets. — (menareport.com)
© 2004 Mena Report (www.menareport.com)
