Celadon Manages Kuwait Trucking Venture

Celadon Group Inc. has agreed to manage a trucking operation based in Kuwait that was formed to provide transportation services for the world community of suppliers involved with the rebuilding efforts in Iraq.

The joint venture was formed by Celadon and a Kuwaiti investment group, with Celadon providing transportation management expertise and the Kuwaiti investment group providing all of the capital needed to organize and operate the joint venture. The joint venture will operate under the name Celadon East Transport Co., SAK.
David Shatto, executive vice president of corporate development, said that, "Under the arrangement, Celadon is to provide all operational, marketing, logistics, and management of the venture. In exchange, we are to receive a portion of the venture's operating income, a monthly management fee, and recovery of our costs. In addition, over a period of time, we have the option to acquire up to a 49% interest in the venture. The Kuwaiti investment group has agreed to provide all funding for the joint venture, including all start-up costs, capital investments, and operating expenses."