Con-Way Announces Expansion of Service In Mexico


Six New Logistics Centers Will Include Warehousing, Cross-docking and Transportation Management

Ann Arbor, Michigan - June 22, 2005 -- Con-Way Transportation Services, Inc. (Con-Way) announced today that its Mexican operating company, Con-Way Mexico Express will open a network of six logistics centers to serve the major commercial shipping markets in Mexico. The facilities are located in Nuevo Laredo, Monterrey, San Luis Potosi, Guadalajara, Queretaro and Mexico City. The centers will begin operations on July 4.

Building this network is the next logical step in providing Con-Way service throughout all the NAFTA markets, said David S. McClimon, president of Con-Way.

We eventually want to provide the same service in Mexico that we currently provide in the United States and Canada.

Con-Way established its presence in Mexico in 1992 when it set up a sales support office in Monterrey. Since then it has expanded its sales offices to cover the cities of Guadalajara, Queretaro, and Mexico City. Each of the new logistics centers will also have a sales office. The expansion will bring the Mexico-based staff of bilingual Mexican nationals to over 50.

The logistics network will be managed by Con-Way Mexico personnel, and will be linked to the Con-Way computer system. This link will allow full operations control and visibility of shipment movements and storage details. Customers will be able to access information about their shipments via the Internet. The computer system will also allow Con-Way to monitor on-time delivery performance in Mexico in the same way that it does in the U.S. and Canada.

Over the past several years we have worked very closely with a select number of excellent Mexican motor carriers and are very confident in their service capabilities, said Jose Antonio Gonzalez, managing director of Con-Way Mexico. Weve established contracts with these carriers to provide the best linehaul connections between all the centers and service to Mexicos major markets. These carriers will be held to the same strict set of transit time and freight handling standards that Con-Way has in place in the U.S. and Canada. They know well be monitoring them and they are enthused about being part of the Con-Way network.

As part of the contract agreements with the Mexican carriers, Con-Way Mexico has published a set of simplified rates and transit time standards. Copies of the rate scales are available on the Con-Way web site, from a local Con-Way account executive or by calling the Con-Way Mexico service desk. The published transit time standards between each logistics center are also available.

In addition to arranging freight transport across the U.S. / Mexico border and within Mexico, the new logistics centers will also provide cross-dock distribution, assembly and short-term warehousing services.

The number of Canadian and U.S. companies with parts manufacturing and assembly plants in Mexico continues to grow. Weve been helping arrange this type of less-than-truckload movement to and from the border for years, said Gonzalez. Having access to our network of logistics centers will now make that assignment much easier and more efficient for our customers. And we will now be able to offer our services to even more customers now that Con-Way has made this investment in facilities and systems.