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Con-Way to Add Mexican Terminals

June 23, 2005|From Bloomberg News

CNF Inc.'s Con-Way Transportation, the biggest regional trucker in the U.S., said Wednesday that it would add six freight distribution terminals in Mexico, building on increased trade between the countries.

The terminals, in Mexico City, Nuevo Laredo, San Luis Potosi, Queretaro, Monterrey and Guadalajara, will open July 4, Con-Way said. Con-Way has had sales offices in Mexico since 1992.

CNF is expanding after U.S.-Mexico trade rose 10% in the first quarter and 5.6% last year, according to the U.S. Transportation Department. Trucks carry about 80% of the cross-border cargo, as measured by value, according to the department.

"Building this network is the next logical step in providing Con-Way service throughout all the North American Free Trade Agreement markets," said David McClimon, the unit's president.

Spokesman Joseph DeLuca said Con-Way's revenue in Mexico had had a significant increase, without giving specifics. Con-Way did not say how much it would spend for the expansion.

The new centers will allow freight to be tracked and managed through the same computer system that Con-Way uses in the U.S., the company said. Mexican truckers will carry the cargo. Each of the new centers will have a sales office.

Shares of Palo Alto-based CNF rose 37 cents to $45.23.

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