Company News

Flying J, Shell Canada Announce Joint Venture

Will build 15 new travel plazas, renovate old facilities

OGDEN, Utah -- Flying J Inc. and Shell Canada Products said they are combining their road transport businesses in Canada. This new joint venture will include Shell Canada Products' national cardlock network and Flying J's Canadian travel plazas.

Shell and Flying J also plan to invest more than $200 million to build new facilitiesincluding more than 15 new travel plazas that will feature Shell gasolinesand remodel existing ones to create a comprehensive network for Canadian road transport customers.

Flying J is the undisputed leader [image-nocss] in the North American highway hospitality and service business, said Les Markiewicz, general manager of commercial sales and marketing for Shell Canada Products. Combining Flying J's high-quality services and facility standards with Shell's nation-wide cardlock network and world-class fuels and lubricants, highlights the best of both companies.

Customers can expect an enhanced level of service, which includes showers, restrooms, food and seating areas as well as access to a suite of ancillary services such as banking, truck and trailer leasing and sales, insurance, payroll services, freight matching, and document management.

Shell and Flying J will also continue to offer their respective loyalty programs to customers.

The road transport industry in Canada is growing and changing, said J. Phillip Adams, President, Flying J Inc. Working together, we have the opportunity to grow our business, invest in our combined network and reduce costsall in a way that maximizes the benefit for customers.

In addition to the network, this amalgamation includes the operational services of Shell Canada Products' commercial fleet cards, which were previously developed and distributed with TCH, a Flying J company that specializes in multi-faceted money transfer products like fuel cards, which are backed by leading web-based applications.

TCH provides the transportation industry with the most efficient, cost effective financial services available, says Ted Jones, president of TCH. We look forward to providing Canadian customers with access to a high-level of customer care, simplified systems and a single-source solution for all their financing needs.

The announcement builds on an existing relationship between Shell Canada and Flying J, which have worked together in the fuel supply, commercial card and road transport business. Most recently, Shell Canada Products and Flying J opened travel plazas in Edmonton, Alberta, and Winnipeg, Manitoba. Plans to open other travel plazas in Western Canada later this year are underway.

Shell Canada Products manufactures, distributes and markets refined petroleum products across Canada. Shell's three refineries convert crude oil into low-sulfur gasoline and diesel fuel, aviation fuels, solvents, lubricants, asphalt and heavy fuel oils. Shell Canada Products supplies these products to retail, commercial and road transport markets through its Canada-wide network of Shell and private-branded retail and cardlock sites.

Flying J Inc. is a privately held Ogden, Utah-based corporation with 2006 sales expected to exceed $15 billion. This fully integrated oil company is the largest retail distributor of diesel fuel in North America and employs more than 14,000 people across the U.S. and Canada through its interstate operations, transportation, refining and supply, exploration and production, financial services and communications divisions.

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