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AmeriGas Partners LP Message Board

  • trux1951 trux1951 Jul 17, 2008 4:48 PM Flag

    Consolidate Supply- Divest Trucking

    APU private trucking subsidiary PTI should be spun off...(ideally with Ferrells private fleet) into a separate third party logistics entity. Then you could take all those Directors, CSR's and Supply reps in those EXPENSIVE offices in Houston and move The ENTIRE SUPPLY GROUP up to PA. The ROI on trucking is diminishing performance and should be a going concern. Trucking with all it's over the road liabilites and driver issues is NOT strategic...BUT using that capital for buying more retailers IS STRATEGIC. The big Houston no longer makes sense. Fix it UGI!
    Dump Trucks

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    • I love uninformed opinions.
      1. Expensive offices? - check your rental rates on Houston versus Valley Forge.
      2. Move Supply group to Valley Forge - Take a look at the employement pools in Valley Forge and the cost - 15-20% higher on base salaries with no energy experience. If you want dispatchers and supply representatives with experience, Houston is the place to be.
      3. Sell PTI - PTI is not a subsidiary. If you read the Annual Report you would know PTI is a private fleet that has common carrier licenses.
      4. Get out of the trucking business? Not Strategic? - AmeriGas is moving heavier into the trucking business because the small independent truckers are falling out. Just as the small retailers cannot carry the insurance burden, the small trucking companies are having the same problems. Without PTI, AmeriGas would be having the same problems as Ferrel in keeping their customers in gas during the critical periods - see a lot of those complaints on the Ferrell message board - have not seen any on AmeriGas.

      Your message sounds like you have an axe to grind with the Houston office personnel, not with the effectiveness of the operation.

      • 1 Reply to dpropaneguy
      • Uniformed...that may be so.
        APU is a fine company and I respect management.
        I do not share your opinion. It seems to me that Ferrell made a smart move by consolidating logistics and it is a know fact that FNA heavily subsidizes Bulk trucking. If FNA could operate without actually owning all that bulk trucking equipment, I think they would. PTI may have licenses to do business as a carrier but it is encumbered by many issues common to all haz mat truckers. I also think that finding decent dispatchers and CSR's is not a tall order in any major city. Training is key. I don't think that PTI equipment utility is maximized nor do I think that the future is bright for any trucking unless they work year round. Sure, it nice to pull trucks from the shipping public when you need them but each time they do, they send a message.
        The whole propane industry would be better served by a mega carrier/logistics operation that operates nationwide. Nothing to keep APU from "capitalizing" this arrangement. APU might just do fine owing a piece of a huge specialized LP Logistics company.

    • I disagree. Trucking is fundamental to the company. No company should contract their core business. Yes APU is a retail company, but they are a delivery company too. Having trucks makes them less exposed to disruptions in supply. APU should buy more strategic assets and mover farther back up the supply chain, not sell them off. Let's see them buy regional storage terminals for rail and pipeline delivery.

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