J.B. Hunt earned 42% of its gross revenue from intermodal operations in the 4th Quarter of 2005. That’s more than its over the road trucking revenue (33%) or its dedicated service division revenue (26%) (Dedicated service is like they do deliveries for Home Depot, etc.)
JB is a company built by an ex-driver after the dead hand of government was removed via deregulation. He was a driver and he wasn’t about to use intermodal. He built a very successful over the road operation.
Haverty, then President of the Santa Fe, saw an opportunity. He invited Mr. Hunt to join him on an office car behind an intermodal train from Chicago. According to a talk given by Haverty at the Chicago Union League Club, “He had the sale made by Galesburg.”
Got to be one of the biggest sales made in railroad history.
Mr. Haverty appears to have seen the potential of Intermodal and the benefits that it could do for Santa Fe and J.B. Hunt. His invitation to Mr. Hunt was a very smart move. I agree with “greyhounds”, Good Job Mike.
Agree and would point out he may have scored another one. By putting up 300 route miles West of Meridain MS, KCS is 30% owner in an entity that will offer intermodal service over the line, evidently extending to Dallas/Alliance on the West end. NS puts up $700 million ca***o upgrade the line for KCS, and gets 70% of new entity. I am sure the new entity will also make a nice bit of business for KCS going foreward. Kudos again.
You have your figures a bit scrambled. Actually what is happening is that KCS is putting up their track (Meridian Speedway) into a Joint Venture with the Norfolk Southern (NS). KCS keeps 70% of the JV, while NS gets 30% and trackage rights over the line and is putting in $300Million in cash for upgrades to the line including CTC and additional sidings and other tracks.
Haverty cheerfully told me one time that he figures his 1988 revival of Santa Fe’s Warbonnet paint scheme…rather than anything he did to grow the business… got him a seat in the “Railfan Hall of Fame.”