Crane Worldwide Logistics set to make debut next month

Former EGL Jim Crane head preps for entrance into competitive marketplace with aggressive growth plans

Jeff Berman, Group News Editor -- Logistics Management, 7/11/2008

HOUSTON—A new player will be on the scene in the global freight forwarding industry next month, with the arrival of Crane Worldwide Logistics.

Led by Jim Crane, former CEO and founder of Eagle Global Logistics (EGL), the Houston-based company expects to generate more than $1 billion in revenue over the next five-to-seven years, according to a company statement. The company’s long-term goal is to operate globally in the Asia/India sub-continent, the Americas, and Europe, and it expects to hire more than 40,000 employees.

EGL was acquired by CEVA Group Plc, a subsidiary of private equity firm Apollo Management Ltd., for approximately $2 billion last August.

The statement added that Crane, who is also founder and CEO of Crane Capital, will serve as Chairman of the Board of Crane Worldwide Logistics. And John Magee, a former senior vice president at EGL, and Keith Winters, former chief administrative officer at EGL, are on board at Crane Worldwide Logistics as chief executive officer and chief operating officer, respectively. Several other former colleagues are also joining Crane, according to the company.

"We will handle expedited heavyweight transportation on a global scale,” said new CEO McGee in an interview with LM. “This will include customs brokerage, international air, ocean (LCL, FCL, break-bulk), as well as project work. We will also provide domestic transportation both air and ground.”

When asked what the biggest competitive advantages and differentiators that he believes Crane Worldwide Logistics will bring in a very competitive marketplace, McGee commented that he believes there is no other company in the logistics business that can offer the shippers more than 185 combined years of experience in global logistics. 

“Rest assured we will put that experience to work for the client,” he said. We bring the talent, the people, the relationships, the innovative solutions and know how to run a seamless supply chain.”

He went on to explain that Crane Worldwide Logistics will feature a single source supply chain management system to ensure seamless operation. This is in contrast to other freight companies who typically juggle numerous systems inherited through acquisition—often resulting in duplicate data entry, hidden financials, and human error.

Crane’s system, according to McGee, will provide its customers with complete data, financial and physical visibility of their shipment from pick-up to delivery.

“Crane Worldwide Logistics will operate as a lean company with competitive prices and complete efficiency,” he said. “Many logistics companies today are so large they sell ‘brand’ and let the machine roll. Crane Global Logistics can boutique the logistics solution.”

While the company stated it intends to operate in more than 40 countries, McGee cautioned that some of this is dependent on which acquisition(s) are successful. He said Crane is confident that it will have company-owned offices in the U.S., as well as the largest Asia markets before the end of the year.

“With such a talented group of founders who have lived and managed around the globe, we will be able to quickly open offices in the key markets,” said McGee.

While there is an optimistic feel to the pending launch of Crane Worldwide Logistics, one industry expert said that building up the company will not come easily.

“I would expect that Jim Crane has some friends left and build fairly quickly, but CEVA is not going to hand him business nor is any else (BAX/Schenker, DHL, Expeditors),” said Richard Armstrong, chairman of Armstrong & Associates, a supply chain consultancy. “He is moving into very strong competition, will need good people around him, and need a solid IT base with good processes.  Remember that EGL was not strong as a supply chain manager and not in a league with quality companies like Expeditors or CH Robinson.”