John D. Boyd, Associate Editor | Nov 07, 2011 2:14PM EST
Intermodal provider Hub Group said its Comtrak Logistics unit acquired assets of intermodal drayage trucker Challenge Transportation.
Newark, N.J.-based Challenge will add 41 drivers and a terminal to Comtrak for regional container deliveries. Previously, Hub had just under 2,000 drivers in the Comtrak network, which mainly supports Hub’s core intermodal offerings.
"This is Comtrak's third significant acquisition in the past 12 months and will mark the addition of the 26th full-service terminal in the Comtrak network," said Chris Kravas, Hub’s chief intermodal officer.
Analyst John Larkin of Stifel Nicolaus said this is part of Hub’s announced strategy to increase the percentage of drayage it handles with its own drivers, aiming to reach 60 percent internal drayage by yearend from 57 percent in late October. Larkin said that gives the company “greater control of its intermodal service levels, which is a major driver of the intermodal value proposition.”
Comtrak President Jim Ronchetto said "with the addition of the New Jersey terminal to the Comtrak network, we are able to offer drayage and regional trucking services” throughout the Northeast.
Hub also said Challenge founder Jan Hopper will be Comtrak’s vice president of recruiting and sales.
-- Contact John D. Boyd at jboyd@joc.com. Follow him on Twitter www.twitter.com/jboydjoc
