The Company remains committed to its long-term strategic plan of developing a comprehensive North American distribution system. During 2000, progress towards achieving this goal was made as cross-border shipments increased and transit time reductions were recorded throughout the U.S. distribution network. The Company plans further improvements in the LTL division as the operation expands its geographic coverage in the U.S. and increases its overall customer base. The Company continues to support these initiatives with investments in rolling stock, real estate and information technology in 2001.

The Logistics division will continue to invest in technology, personnel, and innovative distribution solutions to meet the unique requirements of each customer. Revenue and operating income is expected to increase as the client base grows in 2001. The Intermodal and Highway Brokerage division struggled in 2000 but management has refocused operations and is dedicated to expanding markets and developing more delivery alternatives to ease equipment shortages. At the same time the investment in information technology that was made in the fourth quarter of 2000 will provide management with better information on a timely basis to help improve performance.

The challenge for the TL division in 2001 continues to be attracting and retaining quality owner/operators. With the foundation laid from the prior years' investments in rolling stock, improvements in fleet management and driver utilization that can be achieved with the new information system, revenue and net income is expected to improve in 2001.

The Environmental Services division made significant capital investments in 2000 and in so doing created the groundwork for growth and success in the future. The initial challenges of bringing three new plants on-stream have largely been met and the objective now is to fine-tune performance and generate more volume to obtain the benefit from lower per-unit operating costs.