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.
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.