Celadon Group Inc. will manage a trucking operation based in Kuwait, according to a release from the company. The operation will provide transportation services for suppliers involved with rebuilding efforts in Iraq.
The joint venture was formed by Celadon and a Kuwaiti investment group. Celadon, a truckload carrier headquartered in Indianapolis, will provide its transportation management expertise, while the Kuwaiti investment group will provide the capital. The joint venture will operate under the name Celadon East Transport Co., SAK.
John Hekman, previously vice president of administration at Highway Express in Richmond, VA, will direct the development of the gulf region operations and will be responsible for the venture’s government and military contracting activities, according to David Shatto, Celadon’s executive vice president of corporate development. Highway Express was acquired by Celadon in August 2003.
Under the arrangement, Celadon will provide all operational, marketing, logistics and management of the venture in exchange for a portion of the venture’s operating income, a monthly management fee and the option to acquire up to 49 percent interest in the venture.