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Florida East Coast Industries Inc. (FECI) plans to fold regional long-haul trucking subsidiary Florida Express Carriers Inc. (FLX), and transfer responsibility for the trucking firm's intermodal and drayage services to Florida East Coast Railway (FECR).


Independent third-party contractors would replace FLX drivers and provide drayage services for FECR, according to a prepared statement.


"Over the last few years, the long-haul trucking business has incurred
losses due to a poor economy, over-capacity, higher insurance costs and rate compression," said FECI Chairman, President and Chief Executive Officer Robert Anestis. "We are confident that the benefits from this new service strategy will result in lower overall operating expenses for our transportation business, while enabling FECR to compete in the higher margin Southeast intermodal market."


The 351-mile regional offers the Hurricane Train, an Atlanta-to-Jacksonville, Fla., intermodal service developed through a joint marketing alliance with Norfolk Southern Railway, and intermodal drayage services within 250 miles of the railroad's Atlanta, Jacksonville and Miami terminals.


During 2002, FLX increased interchange loads with FECR from 14,000 to about 20,000.


The railroad plans to continue increasing interchange loads through other carriers and building South Florida intermodal business, said FECR President John McPherson.