Very much a family affair, Kane Transport, Inc. has been providing petroleum transportation services in the Upper Midwest since 1949. What began with one truck used to deliver gasoline and fuel oil from Minneapolis to western Minnesota and eastern North Dakota has grown into one of the largest petroleum common carriers in Minnesota.
Headquartered in Sauk Centre, Minnesota, Kane hauls petroleum, asphalt, biodiesel and ethanol with a fleet of 180 tractors and more than 250 tank trailers. The company’s network of 13 terminals in Minnesota, Wisconsin, North and South Dakota, Iowa and Illinois also serve as the base of operations for Kane’s petroleum inventory management and heating oil, propane and other liquid bulk hauling services. In an average year, Kane delivers 70,000 loads.
“We’ve been able to remain in business for over 60 years because we have never stopped focusing on providing on-time service without compromising safety,” says Pete Kane, vice president, and a member of the third generation of the Kane family to manage the business. “We take pride in our equipment and keep it running and looking like new.”
Versatility
Kane Transport has positioned itself to deliver a high volume of a variety of products over a widespread distribution area by employing a fleet that isn’t dedicated solely to one type of commodity. “One day we’ll be hauling fuel, the next day ethanol, the next day asphalt,” Kane relates. “We like the versatility that we have to use our trucks to haul different products at different times.”
While gasoline and diesel have been the backbone of Kane Transport’s business—thanks in part to Minnesota’s early acceptance of biofuels as an alternative to petroleum products—the company was able to get in on the ground floor of the ethanol distribution segment of the industry. “We’ve been transporting ethanol for 20 years,” Kane says. “It’s been in the Upper Midwest, Minnesota specifically, for a long time. It’s just started to have more channels of distribution than ever before and with the pressure to find alternatives to foreign oil it has gained speed. In the last 10 years, we’ve seen significant growth in the area of alternative fuels transportation.”
In Minnesota, the growth in use of alternative fuels was boosted by a state mandate in 1997 that required all gasoline to contain 10% ethanol. A mandate requiring 20% ethanol in all regular gasoline goes into effect in 2012. In 2005, the state also passed a mandate saying that all diesel fuel must contain 2% bio-iesel. This increased emphasis on biofuels has resulted in upwards of 15% of Kane Transport’s deliveries consisting of biofuels, which can range from loads of E10 to E85 and B2 to B100. he Kane Transport fleet today consists of 2001 through 2006 Peterbilt Model 385 day cabs, 2001 Peterbilt Model 379 sleepers, 2007 through 2010 Peterbilt Model 386 day cabs and sleepers, and 2007 and 2008 Volvo 64VNL sleepers. “Typically, our trade cycles were seven to eight years and 800,000 miles,” Kane relates. “We extended them to nine or 10 years because of all the uncertainty in the market about engine technology, and we are now looking at engine rebuilds as a way to cut the cost of purchasing a new tractor.”
Supplier influence
“Safety, price, weight, technology, fleet uniformity and resale values all influence our purchasing and specification decisions,” Kane continues. “To meet those objectives, supplier relationships are vital to the success of our operation. They influence our purchasing decisions from both cost and profitability standpoints.”
One example of a close relationship with a supplier that Kane maintains is with Blackmer, a maker of transport pumps, and its local distributor of fuel-handling products, Determan Brownie, Inc. Since the mid-1980s, Blackmer TX Series pumps have been standard equipment on nearly all of Kane Transport’s trailers. For the 25 or so trailers that have been specifically marked for the delivery of biofuels, Blackmer TXSD3E Series (3-in.) pumps have been the standard.
The Blackmer TX Series pumps on Kane vehicles are sliding vane transport models that have been designed for use in truck-mounted applications for the delivery of petroleum-based products. The TXS pumps used in biofuels operations are made with elastomers that are not only capable of handling ethanol, but are also compatible with all of the other petroleum products that Kane is delivering.
“We needed a one-pump-fits-all solution for our varied delivery applications,” Kane says. “These pumps are very versatile. When we’re done with one product, we just flush the pump and we’re ready to go, and we don’t have to worry about compatibility when switching from one type of fuel to another.”
Running smoothly
Charged with keeping the Kane Transport fleet running smoothly is a maintenance staff of 14 employees that operates from three shops in Sauk Centre, Inver Grove Heights and Marshall, Minn. The Sauk Centre shop provides tractor repair and service and is equipped to overhaul engines, transmissions, and handle most of the company’s welding work. The other two facilities are primarily preventive maintenance locations.
“Sauk Centre and Inver Grove Heights are also registered cargo tank shops with the Federal Motor Carrier Safety Administration (FMCSA),” Kane notes. “We have three technicians in Inver Grove Heights who are registered inspectors, which allows us to perform External Visual Inspections and Leakage Tests (K) on cargo tanks. We also have four technicians in the Sauk Centre location who can perform those same tests and also conduct inspections on MC331 cargo tanks.”
Team effort
Kane is also quick to credit the company’s fleet management team for their roles in ensuring that the fleet is always in top condition. Included are Pat Henry, shop foreman in Sauk Centre, who leads a team of six technicians and supports purchasing in all terminals; Brandon Smith, maintenance manager at the Inver Grove Heights location, who heads up a group of three technicians and manages repairs in the Twin Cities, Iowa, Illinois and Wisconsin; and Joe Hopfner, maintenance manager in Sauk Centre, who is responsible for coordinating PeopleNet installations and providing warranty support.
“We achieve safe, on-time delivery by being flexible, by spec’ing the right equipment and by effectively maintaining our fleet,” Kane states.“With our continued commitment to providing the strength of a big company combined with the personality of a small business, we expect this family-owned operation to be around for at least another 60 years” he adds. FE
