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Quality Distribution operates approximately 3,800 tractors and 7,800 trailers through Quality Carriers and Quebec-based Levy Transport. Quality Distribution also operates specialized dry bulk hauling, tank cleaning and freight brokerage.
But delving into intermodal - an area in which Finkbiner is quite familiar, as the past head of Norfolk Southern's intermodal division - would be largely for the company's liquid bulk business.
The company already does approximately $6 million in intermodal business through the leasing of International Standards Organization containers, in addition to approximately $450 million in line-haul business and $50 million in rail-to-truck transloading. But the 100 to 150 containers and chassis that are leased are under contract to a single customer; Finkbiner wants to do more.
In terms of equipment, "there are manufacturers in Korea and South America that are offering excellent deals," Finkbiner said. "It's cheaper by a large margin to buy an ISO container and chassis than it is to buy a tank trailer. When you do the research and find these things out, it makes sense to consider them as a business strategy."
Before actually investing in their own equipment, Finkbiner notes, the likely scenario would be to increase the number under lease. "We're definitely pushing the idea of switching from rail to intermodal to our customers," he said. "Some have embraced the idea and some haven't. So depending on how well this goes, it will determine if we will ultimately make the decision to purchase. But that's not something that's in our 2003 capital budget."
Whether or not his company does commit financially to intermodal, Finkbiner stresses it will not have a bearing on its relationship with the railroads, some of which operate their own bulk intermodal services. "We are the largest user of Bulktainer (a Union Pacific Railroad subsidiary). We'd use them first. We have a very lucrative relationship with them and are not interested in changing that," he said.
Finkbiner also noted there isn't a danger of taking bulk business away from the railroads. "For shippers looking at the rate differentials, there's nothing out there that says it makes sense to go from rail car to ISO container," he noted. "But there's a lot of incentive to go from long-haul truck to ISO. I see the market going in that direction, not the other way. I look at the railroads as partners, not as competition."
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