FDX-USF Competition Heats Up In Puerto Rico
On Aug. 9, USFreightways announced the acquisition of Best Ways Air Cargo of Carolina, Puerto Rico, for an undisclosed amount by its freight forwarding subsidiary, USF Worldwide. Three days earlier, FDX Corp.’s subsidiary FDX Global Logistics, based in Memphis, Tenn., agreed to buy GeoLogistics Air Services for $116 million.
Representatives of both companies said they would focus on the lucrative pharmaceutical and medical supply sectors in the U.S. territory.
GeoLogistics Air Services specializes in heavy and oversized air freight forwarding services between the United States and Puerto Rico.
The USF Worldwide deal has been finalized, and the company is taking over Best Ways’ operation immediately.
Included in the deal will be an 18,000-square-foot warehouse and office facility near the San Juan Airport.
In acquiring Best Ways, USF obtains employees with experience in the Puerto Rican market and an established customer base, said John Mugnaini, vice president of sales and marketing at USF Worldwide.
“We want to provide a full package of transportation services to our Fortune 1,000 clients, and serving the Puerto Rico pharmaceutical industry is part of that package,” he said.
Mugnaini downplayed the significance of the FDX Global Logistics purchase, saying that competition is everywhere. “We’re excited about the competition, and may the best man win.”
Mary Ellen Nicoletti, vice president of Puerto Rico operations for GeoLogistics Air Services, said it will take six weeks to receive federal approval. She said the operation, which is based in a hangar at the San Juan Airport, carries more tonnage than Best Ways.
GeoLogistics Air Services had operating income of $4.3 million in the first quarter of 1999.
