Pacer International and CRST International announced today that they have agreed to multi-market dedicated drayage agreements focused on driving intermodal drayage efficiencies and providing incremental capacity for Pacer. Additionally, CRST has formed a separate operating unit, CRST IMX, within its Dedicated Services, Inc. subsidiary to provide this service. CRST IMX will market, sell, and operate an efficient network of intermodal drayage and other short-haul trucking services utilizing CRST’s on site management, dedicated tractors and qualified drivers. The initial focus of CRST IMX will be to provide incremental capacity to Pacer as part of its highly integrated intermodal door-to-door product offering. The companies plan to add 200 trucks in 2012 with the first markets being Chicago, IL and Salt Lake City, UT. CRST will dedicate dray capacity using the latest model day cabs enabling Pacer to service heavier commodities while being more eco-friendly and fuel efficient. An expanded and collaborative effort by Pacer and CRST to attract additional short haul business is expected to reduce empty miles and help balance equipment flows. “We are extremely excited about partnering with CRST to provide a higher integrated service offering at a competitive cost,” said Dan Avramovich, chairman and CEO of Pacer International. “The establishment of CRST dedicated contract agreements will allow Pacer to expand its dray capacity while tightly integrating the critical order management, street route planning, and dispatch management processes.” “A leader in intermodal transportation, Pacer is an ideal customer for our dedicated capacity solutions for the short-haul and drayage market,” said Dave Rusch, president and CEO of CRST International. “Pacer has a deep understanding of the intermodal business and has long-time relationships with railroads, steamship lines, beneficial cargo owners and other users of intermodal transportation. Given CRST’s ability to rapidly provide safe, qualified drivers and efficient tractors, we expect that our dedicated solutions will attract other customers and allow for better equipment utilization, fewer empty miles, and lower costs.”
Shares of Pacer International (Nasdaq:PACR) were gapping up Thursday morning with an open price 14.6% higher than Wednesday's closing price. The stock closed at $4.80 yesterday and opened today's trading at $5.50.