Daniel L. Fapp
SENIOR VICE PRESIDENT
L. E. Peabody & Associates, Inc. (Since 1997) -- Mr. Fapp has over thirty (30) years of experience in solving transportation, manufacturing and service operation issues. His work experience encompasses assisting clients in electric generation, mining and raw materials, light manufacturing and transportation industries. Mr. Fapp also directed projects at both the domestic and international levels.
Mr. Fapp's primary experience lies in the fields of transportation management, optimization, economics and finance. He designed and executed analyses of the capital and operating costs of moving bulk commodities by diverse modes of transportation including rail, full truckload, less than truckload and ocean vessel. Mr. Fapp also established domestic and international logistical networks for the movement of commodities across multiple transportation modes. In establishing these networks, he negotiated rail contracts and ocean vessel charter parties; selected stevedores, ship's agents and customs brokers; and established importation documentation and letter of credit procedures.
Mr. Fapp served as an officer and director of three shortline common carrier railroad companies, where he developed detailed operating and capital budgets, determined least cost operating methods,oversaw rail dispatching functions and participated as a member of the railroad management team leading to the acquisition of new railroad properties. Mr. Fapp participated in and managed numerous projects assisting shortline and regional railroads in their negotiations with connecting Class I carriers, performed and operational cost analyses, property valuations and business evaluations, and worked on rail line expansion and abandonment projects. Mr. Fapp also assisted shippers in their negotiations with rail carriers on a broad range of issues, including rate negotiations, fuel surcharge negotiations, and line acquisitions.
Mr. Fapp directed and managed sourcing and core carrier engagements as both a consultant and as an industry practitioner. These engagements have involved the selection of rail, truckload, less-than-truck load, air express and parcel carriers. He also participated in and managed consortium sourcing projects in the small package express and fleet management fields. Mr. Fapp served on the management team overseeing the implementation of a core carrier program and has been involved in and directed negotiations with regional and national truckload carriers. Mr. Fapp is actively engaged in negotiating coal supply and natural gas contracts. His fuel supply assignments have encompassed analyzing alternative fuel supplies to determine the impact on the delivered price to the end customer, and developing price and quality adjustment mechanisms.
Mr. Fapp is frequently called upon to perform financial analyses and assessments of Class I, Class II and Class III railroad companies. He determined the valuations of privately held freight and passenger railroads, including developing company specific costs of debt and equity for use in discounting future company cash flows. His consulting assignments regularly involve working with and determining various facets of railroad financial issues, including cost of capital determinations. In these assignments, he calculated railroad capital structures, market values, cost of railroad debt, cost of preferred railroad equity and common railroad equity. He provided expert testimony on the use and application of financial industry accepted models for determining a firm's cost of equity, including Discounted Cash Flow Model ("DCF") models, Capital Asset Pricing Model ("CAPM"), equity build-up models.
Mr. Fapp has developed expert testimony for proceedings before the Surface Transportation Board, Federal and state courts and arbitration panels on behalf of shippers, trade associations and shortline railroad companies. Mr. Fapp has frequently served as a guest lecturer in undergraduate and graduate level finance and economic classes.
Previous Related Experience -- Prior to joining L. E. Peabody and Associates, Inc., Mr. Fapp was employed by BHP Copper Inc. in the role of Transportation Manager - Finance and Administration and where he also served as Secretary and Treasurer of the San Manual Arizona, Magma Arizona and BHP Nevada Railroads. He has also held management positions with Arizona Lithographers and MCA/Universal Corporation.
Mr. Fapp received a BS in Business Administration (Marketing) from California State University, Northridge in 1987 and an MBA from the University of Arizona's Eller School of Management in 1993, specializing in finance and operations management.
Mr. Fapp is a member of the Advisory Council for the Eller School of Management’s Department of Finance at the University of Arizona, and serves as a chairperson of the Amphitheater School District’s Project Graduation.