Yellow Roadway makes move to operate in China

| 5/17/2005

Yellow Roadway Corp is looking into purchases and investments in China, which would make it the first U.S. trucking company to operate out of the country.

Yellow Roadway Chairman and CEO Bill Zollars announced the move on Monday, May 16. He said it was the next step following the purchase of GPS Logistics Group of China by its logistics division. GPS Logistics has seven offices in China, the Kansas City Star reported.

According to Financial Times, the move targets large U.S. retailers, such as Wal-Mart and Home Depot, who import large amounts of goods from China but don’t have a solid transportation infrastructure within that country.

“Wal-Mart and Home Depot have no reliable transportation partner to get goods from a manufacturing plant or distribution center to the ports,” Zollars told Financial Times. “There is a tremendous strategic opportunity for us to fill that gap.”

The announcement was made on the heels of UPS Inc.’s purchase of Overnite Corp., one of Yellow’s biggest competitors in the less-than-truckload industry, the Star reported.

Chinese exports to the U.S. totaled $61.2 billion dollars in the first four months of 2005, Bloomberg News reported, up 24 percent from the same period last year.