Up Close – Transplace.com Marks First Quarter
by October 16, 2000 12:00 am 96 views
Transplace.com, a logistics business formed from six of the nation’s largest transportation companies, including Lowell-based J.B. Hunt Transport Services Inc., has completed its first quarter of operations.
rHunt owns 28 percent of Transplace.com, which represents over $700 million in annual revenue. The other companies involved with Transplace.com are Covenant Express Inc., M.S. Carriers Inc., Swift Transportation Co., U.S. Xpress Inc. and Werner Enterprises Inc.
r”The significance is that [Transplace.com] has its management team intact and they’re proceeding with plans,” said Dan Moore, an analyst with Stephens Inc. of Little Rock. They clearly have brought some high-level talent to the table.”
rJun-Sheng Li is Chairman, president, and CEO of Transplace.com. He previously held various management positions at Hunt.
rTransplace.com offers a web-enabled platform to bring together shippers and carriers worldwide to collaborate on their transportation logistics planning and execution in the most efficient and effective manner. It also provides e-procurement services to subscribing carriers to lower their operating costs by leveraging large volume purchasing power for items such as fuel, equipment, maintenance and repair parts, insurance and other products and services.
r”The real challenge at this point is [Transplace.com] executing its business model,” Moore said. “It’s in place, the strategy is sound and the business model itself is sound. The shipping community views it positively. Wall Street views it positively, too. But it will probably be another quarter or two before they get things humming and the investor support really gets going.”
rMoore said he had talked in length with one major retailer that was particularly excited about the opportunities Transplace.com could offer.
rTransplace.com, with its headquarters in Plano, Texas, has about 550 employees.