Summary:
How the 8 richest people in logistics built their fortunes.
The October 2009 edition of Forbes magazine features America’s 400 most wealthy people.
1. Dennis Washington ($4.2 billion), Marine & Rail Transportation, Mining – Montana.
With a net worth of $4.2 billion, Washington leads the pack of logistics moguls and is the 61st richest person on the Forbes 400 list.
Washington owns the largest tug and barge fleet in British Columbia (BC) as well as a large private estate — which includes a luxury fishing lodge and golf course — on Stuart Island, BC.
He began his business career at age 30 in 1964 with a $30,000 loan and a single bulldozer.
2. Victor Fung & family ($2.6 billion), Li & Fung – Hong Kong.
Victor Fung and his wife with Bill Clinton.
Despite the recession, outsourcing firm Li & Fung increased sales by 25% in 2008.
Li & Fung supplies clothes, furnishings, and toys to retailers including Disney, Abercrombie & Fitch, Coca-Cola, Wal-Mart, and Target.
3. Donald Schneider ($2.5 billion), Schneider National – Wisconsin.
With annual sales of $3.7 billion, Schneider National is the U.S.’ largest privately-held freight carrier. Schneider managed to take market share from some smaller, struggling competitors during the recession.
A Wharton MBA, he introduced a 60-mph speed cap on his fleet last year to reduce fuel costs.
In one of my Canadian Institute of Transportation and Traffic courses, my class debated the efficacy of speed caps.
Our consensus was that speed caps actually increase total transportation costs: Savings on fuel are outweighed by increased spending on hourly wages for drivers and other costs associated with delivery delays.
A Schneider National truck is overturned. When the accident occurred, I wonder if the driver was moving at less than 60 mph? Though truck drivers sometimes get a bad rap, the majority of them are safe, professional drivers.
4. Stewart Rahr ($1.95 billion), Kinray – New York.
Stewart Rahr likes to pose with famous people. But I guess he's rather famous, too.
Kinray is the world’s largest independent pharmaceutical and generics distributor.
Rahr started Kinray after dropping out of law school. “Stewie Rah Rah, the #1 King of All Fun” adorns the wall of his office in Queens, NY.
The business card he’s using this summer is a one billion dollar bill that features a picture of Rahr with Donald Trump, Arnold Palmer and Bill Clinton. Now that’s unique, if not eccentric.
It reminds me of Jeffrey Gitomer, who used to distribute a business card for his company’s mascot – his pet cat, Leo.
5. Fred Smith ($1.65 billion), Federal Express – Tennessee.
Fred Smith, who founded FedEx so that he could play with model airplanes from childhood to retirement.
Fedex is the world’s largest private-shipping firm.
The bulk of FedEx’s business is in the movement of courier packages.
That is why everyone reading this has heard of FedEx. Most people who don’t work in logistics will be unfamiliar with the other companies here, because the others primarily distribute freight to manufacturers and retailers, rather than courier packages to consumers.
A Yale grad, Smith envisioned an integrated network of planes and trucks in his senior thesis. He then launched FedEx in 1971.
How about that! A thesis turned into a business plan! I published a thesis myself, though it has yet to yield $1.65 billion.
Smith pioneered elaborate tracking systems because he understood that people want real-time information on the status of shipments in transit:
The information about the package is just as important as the package itself.
6. William E. Conner II ($1.5 billion), Supply Chain Services – Hong Kong.
Conner began working for his father’s company at age 12. He holds an MBA and a law degree.
With 35 offices in 20 countries, more than half of his business comes from women’s apparel and home goods. The balance comes from textiles, lighting and other apparel.
7. Manuel Moroun & Family ($1.3 billion), Central Transport – Michigan.
Manuel is battling the Canadian Canadian government to maintain his priceless monopoly over the Detroit River border crossing.
He owns the Ambassador Bridge, which channels 25-percent of the commerce between the U.S. and Canada. The Bridge handles 8,000 trucks a day and $100 billion worth of goods each year.
8. Johnelle Hunt ($1.1 billion), J.B. Hunt Transport Services – Arkansas.
Johnelle is the widow of trucking titan Johnnie Hunt.
With sales of $3.7 billion, J.B. Hunt is the largest U.S. public transportation company. J.B. Hunt serves the U.S., Canada, and Mexico with over 10,000 vehicles.
Who do you think is the best of these logistics moguls? Or is there an unsung hero out there?
{ 2 comments… read them below or add one }
Nice summary. In Canada, our first Prime Minister, Sir John A. MacDonald, was instrumental in attracting people to migrate to the country.
He did that by persuading people to develop the Canadian Pacific Railway (CPR) across the country. It was a costly endeavor.
But the CPR made it possible to travel and trade between the provinces. It might have done more to spark the population of Canada than anything else.
Hi James, great comment.
CPR really did build Canada.
And my colleagues in logistics tell me that shipping products with CPR is very reliable.