News - August 19, 2007

MainLogo2 HENIFF TRANSPORTATION SYSTEMS, INC.
I N F O R M E R
Quarterly Newsletter
August, 2007
In This Issue
Note from Bob Heniff
Recipient of Safety Awards
Expanding Terminals Footprint
Overcoming Industry-wide Capacity Challenges

Note from Bob Heniff
bob

Dear Valued Customer:
I would like to take this opportunity to thank you for your business and the support you've given us over the years. As I reflect on the past six months, we've experienced a tremendous amount of success in our effort to expand our services and to increase the scale of our business. To meet more of your liquid bulk transportation needs, we've greatly increased our footprint with the addition of many new terminals in 2007. To maintain a high level of consistency in our operations and service, we've taken great care to ensure all new locations have the same laser-like focus on safety, security, and reliability that you've always received from the Heniff team.
In looking forward, you will continue to see advancements in all areas of our business, including expansion of our driver and equipment resources, enhancements to our technology capabilities, and additional leadership support to help increase capacity and to promote safety and security across our industry.
Finally, we don't take your trust in Heniff lightly. As as result, our unwavering commitment to exceed your expectations will continue in every aspect of our business. As we continue our effort to lead the industry, we look forward to working with you for many year to come, and certainly welcome your on-going feedback regarding ways we can better meet your transportation needs.
Best Regards,

Bob Heniff
President
Heniff Transportation Systems, Inc.
Recent Additions to the Heniff Team
--
Dale Rivers
Southest Ops. Mgr.
Coden, AL
Deborah Rivers
Office Manager
Coden, AL
Robbie Nelson
Dispatcher
Beaumont, TX
Randy Morris
Director of Marketing
Alsip, IL
Spencer Shully
Sales & Ops. Assistant
Alsip, IL
Jennifer Gutierrez
Billing
LaPorte, TX
Robert F. Byers
Dispatcher
LaPorte, TX
Robert L. Byers
Gulf Coast Safety Mgr.
LaPorte, TX
Vanessa Rossolille
Administrative Assistant
Alsip, IL
John Zolecki
Staff Accountant
Alsip, IL

Quick Links
Hello,
Welcome to the first edition of our company newsletter, the INFORMER! The purpose of this communication is to help update you on all of the exciting changes happening at our rapidly-growing company. In addition, we plan to highlight important news and trends in our industry.
Going forward, we plan to distribute the newsletter quarterly and would greatly appreciate your input regarding the type of information that would be useful to you as a valued customer of Heniff Transportation Systems.
______________________________________________________
Recipient of Safety Awards
Heniff Transportation Systems was honored with three National Tank Truck Carrier awards for our outstanding safety record in 2006.
  • Competitive Safety Merit Award (8-12 million miles class) -- honored for very low accidents per million miles
  • Personnel Safety Merit Award (8-12 million miles class) -- honored for very low injuries per hours worked
  • Second Year Improvement Award -- honored for continuous improvement

In addition, our company was recently honored with the Lowest 3-Year WC Rate Loss Award by Cottingham & Butler Truck Insurance Group. This award and the NTTC awards are a testament to our deep commitment to safety in every aspect of our business, from pick up and deliveries to back office operations. Our vision is to be one of the safest and most secure liquid bulk carriers in North America. We are very proud to receive this validation as we continue our journey to lead the industry.

Expanding Terminals Footprint
In an effort to significantly increase our
presence in the Gulf Coast region, we've opened many new locations. To ensure consistency, all of our new terminals are fully indoctrinated on our in-depth safety and security practices, and fully committed to providing the same top-quality service that customers are accustomed to receiving from existing company locations.
New Locations:
  • Alabama-based Terminals
    • Mobile, AL
    • Birmingham, AL
  • Florida-based Terminal
    • Jacksonville, FL
  • Texas-based Terminal
    • Beaumont, TX
  • Louisiana-based Terminal
    • New Orleans, LA (under construction)

For more information regarding these terminals, please contact us at 1-877-HENIFF1.

Overcoming Industry-wide Capacity Challenges

As reported by American Trucking Associations (ATA) and Federal Highway Administration (FHWA), the trucking industry continues to face ongoing capacity-related challenges.We believe these industry-wide challenges are addressable and largely attributable to the following constraints:

  • Tractor/Trailer Limitations - This challenge is most-commonly caused by limited shipping hours and overloading tractor/trailer resources during peak loading and unloading times, causing longer delivery times due to bottlenecks.In addition, the demand for delivery of chemicals continues to grow.To help address this industry-wide situation, we're working aggressively to expand our existing fleet, purchasing tractors and trailers that are engineered to be as light as possible to increase payload, working with our customers and partners to consider pickups and deliveries at non-peak/weekend hours and to reduce time-wasters, and improving our collaboration between chemical supplier and consignee sites.
  • Driver Shortage - It is widely known that a shortage of drivers exists across the liquid bulk transportation market, as well as the broader trucking industry.This issue stems from the difficultly to recruit new, high-quality drivers due to the minimum age limit, required experience, higher-than-average job safety concerns, time away from home, and a growing retiring driver population.To help alleviate this industry-wide problem, we're working to better educate the general public about the benefits of being a liquid bulk truck driver, looking at ways to retain older drivers, maximizing the gender pool (i.e., hiring more women), and hiring more legal immigrants and minorities.
  • Regulation Changes - Driver availability is limited by hours-of-service regulation changes that decrease drivers' time behind the wheel.To address this challenge, we're closely monitoring drivers via technology and administrative staff.We're also working with shippers to maximize drivers' time on difficult shipments.
  • Congestion/Infrastructure - It is estimated that 243 million hours are lost annually due to highway congestion.Moreover, the number of trucks on highways is expected to increase by 70% by 2020, yet lane-miles will only increase by a few percent.Growing highway congestion is currently being reviewed and addressed by a variety of governmental bodies which will result in new investments in highway capacity, preservation of existing infrastructure, and improvements in communications and operations.
  • Technology Adoption - As a whole, the transportation industry hasn't fully utilized all of the new technologies available to help address the capacity-related challenges. Many of these new technological advancements (e.g., Web-based logistics, Transportation Management Systems, electronic order tendering, etc.) will help dramatically improve communication and efficiencies across the chemical delivery chain.As a result, we've aggressively reviewed these and other technologies, and plan to implement new technologies across our company later this year.




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