FORM 10-Q

                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549

                                   (Mark One)
    [ X ]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES
                              EXCHANGE ACT OF 1934

               For the fiscal quarter ended     September 30, 2000
                                            ------------------------------------

                                       OR

    [   ]  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE
                         SECURITIES EXCHANGE ACT OF 1934

                   For the transition period from               to
                                                  -------------    -------------

                       Commission file number:     0-2882
                                              ----------------------------------

                             ESCO TRANSPORTATION CO.
          ------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

                  DELAWARE                                55-0257510
                  --------                                ----------
       (State or other jurisdiction of      (I.R.S. Employer Identification no.)
        incorporation or organization)

              4301 EASTPARK DRIVE
                HOUSTON, TEXAS                              77028
                --------------                              -----
        (Address of principal executive offices)          (Zip Code)

Registrant's  telephone  number,  including  area  code:  (713)  635-1008
                                                          ---------------

          Securities registered pursuant to Section 12 (b) of the Act:

                                      NONE

          Securities registered pursuant to Section 12 (g) of the Act:

                     Common Stock $ .001 par value per share
                     ---------------------------------------
                                 Title of class
Indicate by check mark whether the registrant (1) has filed all reports required
to  be  filed  by  Section  13  or 15 (d) of the Securities Exchange Act of 1934
during  the  preceding 12 months (or for such shorter period that the registrant
was  required  to  file  such  reports), and (2) has been subject to such filing
requirements  for  the  past  90  days.  Yes    No  X .  Registrant  is  working
                                            ---    ---
diligently  to  become  current  in  its  filings.

Indicate  by  check  mark  whether  the  registrant  has filed all documents and
reports  required  to  be  filed  by  Section  12, 13 or 15(d) of the Securities
Exchange  Act  of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.  Yes     No  X  .  Registrant  has  not  had a  bankruptcy
                          ----   -----
plan  confirmed  by  a  court  as  of  the  date  of  this  filing  hereof.


<PAGE>
Indicate  the  number  of  shares outstanding of each of the issuer's classes of
common  stock,  as  of  the  close  of  the  period  covered  by  this  report.

          Common Stock, $ .001 Par Value                 12,552,997
          ------------------------------                 ----------
                   (Class)                (Outstanding as of September 30, 2000)


<PAGE>
<TABLE>
<CAPTION>
                                TABLE OF CONTENTS


PART I   FINANCIAL INFORMATION

Item 1.  Financial Statements                                             Page
                                                                          ----

<S>      <C>                                                              <C>
         Statements of Income for the Three and Nine Months Ended
            September 30, 2000 (Unaudited) and 1999 (Unaudited)               3

         Balance Sheets for the Nine Months Ended September 30,
            2000 (Unaudited) and for the Year Ended December 31, 1999
            (Unaudited)                                                       4

         Statements of Cash Flows for the Nine Months Ended
            September 30, 2000 (Unaudited) and 1999 (Unaudited)               5

         Notes to the Financial Statements (Unaudited)                     6-13

Item 2.  Management's Discussion & Analysis of Financial Condition  and   14-16
         Results of Operations

PART II  OTHER INFORMATION

Item 1.  Recent Developments in Legal Proceedings                         17-18

Item 2.  Changes in Securities                                               18

Item 3.  Defaults upon Senior Securities                                     18

Item 4.  Submission of Matters to a Vote of Security Holders                 18

Item 5.  Other Information                                                   18

Item 6.  Exhibits and Reports on Form 8-K                                    19

         Signatures                                                          20
</TABLE>


<PAGE>
<TABLE>
<CAPTION>
ESCO  TRANSPORTATION  CO.
Statements  of  Income
For  the  Three  and  Nine  Months  Ended
September 30, 2000 and December 31, 1999


                                                   FOR THE THREE MONTHS        FOR THE NINE MONTHS
                                                    ENDED SEPTEMBER 30          ENDED SEPTEMBER 30
                                                    2000          1999          2000          1999
                                                ------------  ------------  ------------  ------------
<S>                                             <C>           <C>           <C>           <C>
                                                 (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
OPERATING REVENUE:
  Freight Revenue                               $12,304,417   $ 8,778,050   $36,191,464   $24,294,211
  Oil and Gas Revenue                                 2,660         1,022         5,380         3,156
                                                ------------  ------------  ------------  ------------
       TOTAL OPERATING REVENUE                   12,307,077     8,779,072    36,196,844    24,297,367
                                                ------------  ------------  ------------  ------------

OPERATING EXPENSES:
  Cost of Freight Revenue                         9,520,324     6,749,512    28,319,508    18,076,865
  General Administrative Expenses                 2,769,754     1,692,600     7,469,087     5,084,091
  Depreciation and Depletion                        103,488        72,325       301,250       192,599
                                                ------------  ------------  ------------  ------------
       TOTAL OPERATING EXPENSES                  12,393,566     8,514,437    36,089,845    23,353,555
                                                ------------  ------------  ------------  ------------
       OPERATING INCOME                             (86,489)      264,635       106,999       943,812
                                                ------------  ------------

OTHER INCOME (EXPENSE):
  Interest Income                                    10,990        12,477        34,592        25,467
  Other Income                                      (17,095)            0         2,015        15,016
  Interest Expense                                 (539,788)     (371,930)   (1,388,601)   (1,040,789)
  Gain (Loss) on Sale of Assets                    (236,449)       35,851      (227,221)       80,094
                                                ------------  ------------  ------------  ------------
       TOTAL OTHER INCOME (EXPENSE):               (782,342)     (323,602)   (1,579,215)     (920,212)
                                                ------------  ------------  ------------  ------------
       INC. (LOSS) BEFORE REORG. ITEMS             (868,831)      (58,967)   (1,472,216)       23,600

REORGANIZATION ITEMS:
  Professional Fees                                  59,707             0        59,707             0
                                                ------------  ------------  ------------  ------------

       NET INC. (LOSS) BEFORE TAXES                (928,538)      (58,967)   (1,531,923)       23,600

INCOME TAX:                                               0             0             0             0
                                                ------------  ------------  ------------  ------------

NET INCOME (LOSS)                               $  (928,538)  $   (58,967)  $(1,531,923)  $    23,600
                                                ============  ============  ============  ============

Net Income (Loss) Per Share                     $    (0.072)  $    (0.004)  $    (0.113)  $     0.002
                                                ============  ============  ============  ============

Weighted Average Number of Shares Outstanding    12,932,997    14,179,112    13,613,970    14,179,112
</TABLE>


              See Notes to Unaudited Condensed Financial Statements
                                        3


<PAGE>
<TABLE>
<CAPTION>
ESCO  TRANSPORTATION  CO.
Balance  Sheets
For  the  Nine  and  Twelve  Months  Ended
September  30,  2000  and  December  31,  1999


                                                                                  September 30, 2000    December 31, 1999
                                                                                 --------------------  -------------------
ASSETS                                                                               (Unaudited)           (Unaudited)
------
<S>                                                                              <C>                   <C>
CURRENT ASSETS:
  Cash and Cash Equivalents                                                      $            49,857   $          109,929
  Accounts Receivable, Net of Allowance for Bad Debts of
       $781,087 in 2000 and $403,228 in 1999                                               7,444,590            6,172,164
  Truck Maintenance Supplies                                                                 126,275              152,557
  Employee Advances and Driver Loans                                                         218,365              117,092
  Notes Receivable - Employees, Current                                                       96,363              241,830
  Notes Receivable - Stockholders                                                            396,593              217,109
  Prepaid Expenses                                                                           377,712              134,046
  Other Current Assets                                                                       152,102               26,085
                                                                                 --------------------  -------------------
            TOTAL CURRENT ASSETS                                                           8,861,857            7,170,812
                                                                                 --------------------  -------------------

PROPERTY AND EQUIPMENT:
  Property and Equipment                                                                  11,369,217           12,516,566
  Less Accumulated Depreciation                                                           (4,478,724)          (3,980,000)
                                                                                 --------------------  -------------------
            NET PROPERTY AND EQUIPMENT:                                                    6,890,493            8,536,566
                                                                                 --------------------  -------------------

OTHER ASSETS:
  Intangibles, Net of Accumulated Amortization                                               353,110               82,871
  Notes Receivable - Employees, Non Current                                                   10,804                    0
  Other Assets - Non Current                                                                  18,261               35,392
                                                                                 --------------------  -------------------
            TOTAL OTHER ASSETS:                                                              382,175              118,263
                                                                                 --------------------  -------------------

TOTAL ASSETS                                                                     $        16,134,525   $       15,825,641
                                                                                 ====================  ===================

LIABILITIES AND STOCKHOLDERS' EQUITY
------------------------------------

CURRENT LIABILITIES:
  Accounts Payable - Trade                                                       $         2,290,949   $        1,247,094
  Bank Overdrafts                                                                            640,775              436,838
  Accrued and Other Liabilities                                                            1,461,463              980,700
  Amounts Due Factor                                                                       8,551,843            6,944,085
  Current Portion of Long-Term Debt                                                        2,070,288            2,038,470
  Current Portion of Obligations under Capital Lease                                         271,492              235,603
                                                                                 --------------------  -------------------
            TOTAL CURRENT LIABILITIES                                                     15,286,810           11,882,790

LONG-TERM DEBT:
  Long-Term Debt, Net of Current Portion                                                   1,352,774            3,138,735
  Obligations under Capital Lease, Net of Current Portion                                    661,630              852,633
                                                                                 --------------------  -------------------
            TOTAL LONG-TERM DEBT                                                           2,014,404            3,991,368

LIABILITIES SUBJECT TO COMPROMISE:                                                                 0                    0
                                                                                 --------------------  -------------------
            TOTAL LIABILITIES                                                             17,301,214           15,874,158
                                                                                 --------------------  -------------------

STOCKHOLDERS' EQUITY
--------------------
  Preferred Stock, $.001 Par Value; 15,000,000 Shares Authorized; None Issued
  Common Stock, $.001 Par Value; 20,000,000 Authorized; 12,820,517 and
     14,084,017 Issued; 12,552,997 and 13,818,997 Outstanding in 2000 and 1999                 1,577                1,560
  Additional Paid-In Capital                                                               1,562,316            1,625,765
  Retained Earnings (Deficit)                                                             (1,928,308)            (396,385)
                                                                                 --------------------  -------------------
                                                                                            (364,415)           1,230,940
  Less Note Receivable from Stockholders                                                    (713,702)          (1,191,635)
  Less Treasury Stock, At Cost                                                               (88,572)             (87,822)
                                                                                 --------------------  -------------------
            TOTAL STOCKHOLDERS' EQUITY                                                    (1,166,689)             (48,517)
                                                                                 --------------------  -------------------

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                       $        16,134,525   $       15,825,641
                                                                                 ====================  ===================
</TABLE>


              See Notes to Unaudited Condensed Financial Statements
                                        4


<PAGE>
<TABLE>
<CAPTION>
ESCO  TRANSPORTATION  CO.
Statements  of  Cash  Flows
For the Nine Months Ended September 30, 2000 and 1999


                                                             2000          1999
                                                         ------------  ------------
                                                          (Unaudited)  (Unaudited)
<S>                                                      <C>           <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
  Net Cash Provided by Operating Activities              $    56,344   $ 1,940,590

CASH FLOWS FROM INVESTING ACTIVITIES:
  Purchase of Property and Equipment                        (204,796)   (2,274,883)
  Purchase of Selma Receivables                              (15,629)            0
  Purchase of Quantum Intangibles                            (67,874)            0
  Shareholder Advance                                       (203,687)     (371,249)
  Payments Received on Notes Receivable                       45,578             0
  Payments Received from Shareholders                          3,900             0
  Proceeds from Sale of Property and Equipment               454,006       867,326
                                                         ------------  ------------

  Net Cash Provided (Used) in Investing Activities            11,498    (1,778,806)

CASH FLOWS FROM FINANCING ACTIVITIES:
  Net Payments on Long-Term Debt                          (1,789,268)   (2,077,629)
  Proceeds from Capital Leases                                     0       686,282
  Payments on Capital Leases                                (184,715)      (44,919)
  Proceeds from Long-Term Debt                             1,846,819     1,336,874
  Purchase Treasury Stock                                       (750)      (34,007)
                                                         ------------  ------------

  Net Cash Provided (Used) by Financing Activities          (127,914)     (133,399)
                                                         ------------  ------------

  Net Increase (Decrease) in Cash and Cash Equivalents       (60,072)       28,385


CASH AND CASH EQUIVALENTS, AT BEGINNING OF YEAR              109,929        25,833
                                                         ------------  ------------

CASH AND CASH EQUIVALENTS, AT END OF PERIOD              $    49,857   $    54,218
                                                         ============  ============


Non Cash Transactions:
  Stock issued to acquire business                       $         0   $    40,000
  Stock issued to acquire Quantum Transportation             477,000             0
  Stock issued under management incentive agreements        (570,001)      570,001
  Stock issued to Employees                                        0        50,600
                                                         ------------  ------------
      Total Non-Cash Transactions                        $   (93,001)  $   660,601
                                                         ============  ============
</TABLE>


              See Notes to Unaudited Condensed Financial Statements
                                        5


<PAGE>
Item  1.     Financial  Statements  (Continued)

ESCO  TRANSPORTATION  CO.
Notes  to  the  Unaudited  Condensed  Financial  Statements
September  30,  2000  (Unaudited)


Note  1  -  Interim  Financial  Statements
------------------------------------------

The accompanying unaudited financial statements of ESCO Transportation Co., (the
"Company")  have  been  prepared  pursuant  to  the rules and regulations of the
Securities  and  Exchange  Commission.  Certain  information  and  footnote
disclosures normally included in annual financial statements have been condensed
or  omitted  pursuant  to  those  rules  and  regulations.  However, the Company
believes  the  disclosures contained herein are adequate to make the information
presented  not  misleading.  The financial statements reflect, in the opinion of
management,  all  material  adjustments  (which  include  only  normal recurring
adjustments)  necessary  to  present fairly the Company's financial position and
results  of  operations.

Note  2  -  Chapter  11  Bankruptcy  Filing
-------------------------------------------

The  Company  had  a  going  concern  footnote to its financial statements as of
December 31, 1999.  The Company had incurred net losses in 1999 and 1998 and had
a  working  capital  deficit  of $4.7 million and a deficit in the stockholders'
equity  at  December  31,  1999.  This deficit position continued throughout the
first  three  quarters  of  2000.  Additionally, on April 20, 2000, Compass Bank
acknowledged  that  the  Company  was in default on its factoring agreement, but
subsequently  agreed  that  the  Company  would  have  an  extended  deadline of
September  1,  2000  to  comply  with  the  terms  set  forth in this agreement.
Although  the  Company  attempted  to  alleviate the conditions set forth in its
agreement  with Compass Bank and although the Company's revenue has continued to
grow at a significant rate, a concurrent increase in interest and other expenses
(discussed  at  greater length in Management's Discussion, Analysis, and Plan of
Operation) promulgated the Company to file a voluntary petition on September 25,
2000  (the  "Date  of  the Petition") under Chapter 11 of the Federal Bankruptcy
Code, the Southern District of Texas in re:  00-38785-H5-11; ESCO Transportation
Company.  From  and  since  the  Date  of  Petition,  the Company has maintained
possession  of  its  property,  and  has  continued  to remain in control of its
ongoing business affairs as a Debtor-in-Possession pursuant to the provisions of
11  U.S.C.  Sec.Sec.  1107  and  1108.


Note  3  -  Summary  of  Significant  Accounting  Policies
----------------------------------------------------------

A.   Correction  in  recording  Drivers'  Reimbursements
     ---------------------------------------------------

     Drivers'  reimbursements  for  such  items  as  insurance,  radios, pagers,
     uniforms,  and  license  fees  had  been  booked  in the past as Revenue. A
     correction  was  made  to  book  these items in Cost of Sales to offset the
     associated  expenses  for  all of 2000. The financial information for three
     and  nine  months for 2000 and 1999 reflects this correction. For the three
     months  ended  September  30,  2000  and  1999,  revenue  and cost of sales
     decreased  by $332,670 and $256,055 respectively. For the nine months ended
     September  30,  2000  and  1999,  revenue  and  cost  of sales decreased by
     $955,698  and  $317,760  respectively.  Item  1.  Financial  Statements
     (Continued)


                                        6
<PAGE>
Item  1.     Financial  Statements  (Continued)

ESCO  TRANSPORTATION  CO.
Notes  to  the  Unaudited  Condensed  Financial  Statements
September  30,  2000  (Unaudited)


Note  3  -  Summary  of  Significant  Accounting  Policies  (Continued)
-----------------------------------------------------------------------

B.   Correction  in  recording  Depreciation  for  Trucks  and  Trailers
     -------------------------------------------------------------------

     Depreciation  for  trucks  and  trailers  had been booked in the past as an
     operating  expense under the title Depreciation and Depletion. A correction
     was  made to book depreciation on trucks and trailers in Cost of Sales. The
     financial  information for three and nine months for 2000 and 1999 reflects
     this  correction.  For  the three months ended September 30, 2000 and 1999,
     cost of sales increased by $336,084 and $310,961 respectively. For the nine
     months  ended  September  30,  2000  and  1999, costs of sales increased by
     $1,067,931  and  $923,999  respectively.

C.   Use  of  Estimates
     ------------------

     The  preparation  of  financial  statements  in  conformity  with generally
     accepted  accounting  principles  requires management to make estimates and
     assumptions  that  affect  reported amounts and related disclosures. Actual
     results  could  differ  from  these estimates. Management believes that the
     estimates  are  reasonable.

D.   Revenue  Recognition
     --------------------

     Revenue  and  direct  costs  are recognized when the shipment is completed.


E.   Income  Taxes
     -------------

     The  Company uses the liability method of accounting for income taxes under
     which  deferred  tax  assets  and liabilities are recognized for deductible
     temporary  differences.  Temporary  differences are the differences between
     the  reported  amounts  of  assets  and  liabilities  and  their tax basis.
     Deferred  tax  assets  are  reduced  by  a valuation allowance when, in the
     opinion  of management, it is more likely than not that some portion or all
     of the deferred tax assets and liabilities will be adjusted for the effects
     of  changes  in  tax  laws and rates on the date of enactment. For the nine
     months ended September 30, 2000, net operating loss benefits were offset by
     a  valuation  allowance.  The valuation allowance did not change materially
     from  the  balance  at  December  31,  1999.


                                        7
<PAGE>
Item  1.     Financial  Statements  (Continued)

ESCO  TRANSPORTATION  CO.
Notes  to  the  Unaudited  Condensed  Financial  Statements
September  30,  2000  (Unaudited)

F.   Net  Income  Per  Share
     -----------------------

     Net  income  per  common  share  is based on the weighted average number of
     shares  outstanding  during  the  year.

     The  Company  acquired Quantum Transportation in January, 2000 as disclosed
     in  Note  P  -  Subsequent  Events  of the Company's December 31, 1999 Form
     10KSB.  The  purchase  price includes the options for the seller to receive
     additional  shares  of  stock  with  an  expiration  of  six years from the
     acquisition  date  if the shares of stock do not reach a benchmark price of
     $3.00  per  share. If these shares were converted as of September 30, 2000,
     an  additional  3,816,000  shares would be issued under this agreement. The
     dilution  effect  on earnings per share for the additional shares issued is
     not  disclosed  in the accompanying financial statements because they would
     be  anti-dilutive if reported since the Company is currently operating at a
     loss.


                                        8
<PAGE>
Item  1.     Financial  Statements  (Continued)

ESCO  TRANSPORTATION  CO.
Notes  to  the  Unaudited  Condensed  Financial  Statements
September  30,  2000  (Unaudited)

Note  4  -  Amounts  Due  to  Compass  Bank
-------------------------------------------

Pursuant to the Bankruptcy agreement, as of September 30, 2000, the Company owed
Compass  Bank  $8,551,843, which is secured by accounts receivable and all other
assets  and  as  of  the  date  of this filing the balance is approximately $8.2
million.

Note  5  -  Cash  and  Cash  Equivalents
----------------------------------------

Included  in the totals for Cash and Cash Equivalents for September 30, 2000, is
a  certificate  of  deposit  in  the  amount  of  $11,326, which is pledged as a
security deposit with a vendor.  This certificate of deposit was acquired in the
purchase  of  Quantum  Transportation,  Inc.  on  January  19,  2000.

Note  6  -  Segment  Information
--------------------------------

The  Company's operations are divided into three segments by type of operations,
which  are  intermodal  operations,  over-the-road  operations,  and  storage
operations.  Intermodal  operations  consist  of  short-haul,  drayage shipments
primarily  from railroad ramps to customer docks and are operated out of various
company  locations.  Over-the-road  operations represent long haul, door-to-door
deliveries  for customers.  Storage operations represent the Company's container
yard operated in Memphis, Tennessee.  The following tables present 2000 and 1999
segment  information:


                                        9
<PAGE>
Item  1.     Financial  Statements  (Continued)

ESCO  TRANSPORTATION  CO.
Notes  to  the  Unaudited  Condensed  Financial  Statements
September  30,  2000  (Unaudited)

Note  6  -  Segment  Information  (Continued)
---------------------------------------------

                           Three Months Ended September 30, 2000
               ----------------------------------------------------------
                             Earnings
                  Sales       (Loss)
               -----------  ----------
Intermodal     $ 8,211,199  $(139,590)
Over-the-Road    3,640,893   (545,629)
Storage            452,325    281,377
Other                2,660   (524,696)
               -----------  ----------
               $12,307,077  $(928,538)
               ===========  ==========


                           Nine Months Ended September 30, 2000
               ----------------------------------------------------------
                              Earnings
                  Sales        (Loss)
               -----------  ------------
Intermodal     $22,805,357  $  (649,081)
Over-the-Road   12,166,682   (1,108,664)
Storage          1,219,425      750,785
Other                5,380     (524,963)
               -----------  ------------
               $36,196,844  $(1,531,923)
               ===========  ============


                           Nine Months Ended September 30, 2000
               ----------------------------------------------------------
                           Additions to
               Long-Term    Long-Lived
                 Assets       Assets      Total Assets
               ----------  -------------  -------------
Intermodal     $1,167,053  $      75,747  $  10,392,823
Over-the-Road   5,580,204         86,933      5,580,204
Storage           143,236                       143,236
Other                                            18,262
               ----------  -------------  -------------
               $6,890,493  $     162,680  $  16,134,525
               ==========  =============  =============


                                       10
<PAGE>
Item  1.     Financial  Statements  (Continued)

ESCO  TRANSPORTATION  CO.
Notes  to  the  Unaudited  Condensed  Financial  Statements
September  30,  2000  (Unaudited)

Note  6  -  Segment  Information  (Continued)
---------------------------------------------

                           Three Months Ended September 30, 1999
               ----------------------------------------------------------

                            Earnings
                 Sales       (Loss)
               ----------  ----------
Intermodal     $5,165,810  $ 571,395
Over-the-Road   3,509,835   (741,945)
Storage           102,405    115,048
Other               1,022     (3,465)
               ----------  ----------
               $8,779,072  $ (58,967)
               ==========  ==========


                           Nine Months Ended September 30, 1999
               ----------------------------------------------------------

                             Earnings
                  Sales       (Loss)
               -----------  ----------
Intermodal     $14,356,306  $ 745,331
Over-the-Road    9,572,882   (891,670)
Storage            365,023    171,272
Other                3,156     (1,333)
               -----------  ----------
               $24,297,367  $  23,600
               ===========  ==========


                           Nine Months Ended September 30, 1999
               ----------------------------------------------------------
               Total  Net   Additions to
                Long-Term    Long-Lived
                 Assets        Assets      Total Assets
               -----------  -------------  -------------
Intermodal     $   544,141  $     258,184  $   8,599,293
Over-the-Road    7,833,734      1,957,625      6,381,447
Storage            152,880                       152,880
Other               18,261                        18,261
               -----------  -------------  -------------
               $ 8,549,016  $   2,215,809  $  15,151,881
               ===========  =============  =============

The  segmented  information  is  prepared  under  generally  accepted accounting
principles.  The amounts also incorporate the allocation of overhead costs based
on  the  number  of  loads  on the various segments operated within the Company.

For  the  period  ended  September 30, 2000, all of the Company's operations are
conducted  within  the  United  States.


                                       11
<PAGE>
Item  1.     Financial  Statements  (Continued)

ESCO  TRANSPORTATION  CO.
Notes  to  the  Unaudited  Condensed  Financial  Statements
September  30,  2000  (Unaudited)


Note  7  -  Going  Concern
--------------------------

The  financial  statements  have been prepared assuming that ESCO Transportation
Co.  will  continue as a going concern.  The Company incurred net losses for the
quarter and year-to-date  ended at September 30, 2000 of $928,538 and $1,531,923
respectively.  In  1999  and  1998, the Company had a working capital deficit of
approximately $4.7 million and had a deficit in stockholders' equity at December
31,  1999.  On  September  25, 2000 the Company filed for Chapter 11 Bankruptcy.
The  financial  statements do not include any adjustments that might result from
the  outcome  of  these  uncertainties.

The  Company  intends  to file an Exit Plan with the Bankruptcy Court within 200
days from September 25th, 2000.  The Company is currently operating under a Cash
Collateral  Agreement  agreed  to  by creditors and approved by the Court.  (See
Note  10  -  Subsequent  Events)

Note  8  -  Recent  Pronouncements
----------------------------------

In  December  1999,  the  Securities  and Exchange Commission (SEC) issued Staff
Accounting  Bulleting  No.  101  (SAB  101),  Revenue  Recognition  in Financial
Statements.  SAB 101 provides guidance on applying generally accepted accounting
principles to revenue recognition issues in financial statements.  In June 2000,
the SEC issued Staff Accounting Bulletin No. 101B (SAB 101B), Amendment: Revenue
Recognition in Financial Statements.  SAB 101B delays the implementation date of
SAB  101  for registrants with fiscal years that begin between December 16, 1999
and  March  15,  2000.  The Company will adopt SAB 101 as required in the fourth
quarter  of 2000 and is evaluating the effect that such adoption may have on its
consolidated  results  of  operations  and  financial  position.


                                       12
<PAGE>
Item  1.     Financial  Statements  (Continued)

ESCO  TRANSPORTATION  CO.
Notes  to  the  Unaudited  Condensed  Financial  Statements
September  30,  2000  (Unaudited)


Note  9  -  Acquisitions
------------------------

None

Note  10  -  Subsequent  Events
-------------------------------

The  Gulfport,  Selma,  Ripon,  and  Savanna  terminals  were closed in January,
February,  February,  and March of 2001 respectively.  A new intermodal terminal
was  opened  in  Charlotte,  North Carolina on February 14, 2001.  The number of
trucks  and  trailers  at  the  Springdale terminal has been reduced to decrease
operating  costs  and  bring  the over-the-road segment toward being profitable.

The Company's financial statements have been presented on the basis that it is a
going concern, which contemplates the realization of assets and the satisfaction
of  liabilities  in  the  normal course of business.  The Company incurred a net
loss of $1,531,923 for the nine months ended September 30, 2000, and has not yet
filed the bankruptcy plan.  These factors, among others, raise substantial doubt
as  to  the  Company's  ability  to  continue  as  a  going  concern.

The  Company's  management  intends  to raise additional operating funds through
equity  and/or  debt  offerings.  However,  there  can  be  no  assurance  that
management  will  be  successful  in  this  endeavor.


                                       13
<PAGE>
Item 2.    Management's Discussion & Analysis of Financial Condition and Results
of  Operations

OVERVIEW
--------

During  the second and third quarters of 2000, the Company decided to streamline
its management configuration. During the second quarter the Company accepted the
resignations  of its president, chief financial officer, secretary/treasurer and
a long time Board member in addition to other staff reductions.  The Company has
used  these  resignations  as  an  opportunity  to  revise officer positions and
realign  and  combine  tasks  and  functions.  This  revised  plan allows a cost
savings  to  the  Company  of  over  $500,000  on  an  annualized  basis.  After
considering  its  alternatives and reviewing the financial position with its CFO
and  other  advisors, the Board of Directors made the further determination that
the  Company needed to work down its debt position and reorganize for its return
to  profitability.  The  Company  sought  protection  under  Chapter  11  of the
Bankruptcy  Code  on September 25, 2000 due to its inability to make payments on
debt  service  for  some of its equipment.  The Company is currently selling and
offering  for  sale,  certain  non-essential equipment, specifically older model
trucks  and  trailers.  The  Company's  sale  of  equipment  has  resulted  in a
significant  reduction  in  debt  service  and  increased  cash  flow.

Streamlined  management  and  restructured  over-the-road  operations during the
third  quarter  as  well  as  in  October and November of 2000 reduced operating
costs.  Management's  short-term  plan  is  to  reduce  the over-the-road fleet,
replace  outdated  and  deteriorating  equipment  with  owner-operator  managed
equipment,  and  redirect  its  over-the-road division into traffic lanes, which
increase  average  revenues  per  mile,  and can generate profitable operations.
This  reduction  of  capital  equipment will lower debt service.  Management has
continued  to  evaluate  and improve its intermodal operations and its container
storage  yard  operations.  ESCO  has  historically  operated  profitably in the
intermodal  division  before  one-time adjustments, but it has also shown losses
historically  in  the  over-the-road  division.  The  Company finished the third
quarter  of  2000  with  a net loss of ($928,538) and a year-to-date net loss of
($1,531,923).

In  the third quarter of 2000, management continued to work with Compass Bank on
its  agreement  to  provide  working  capital for ESCO on an ongoing basis until
September  25,  2000  at which time the Company filed for Chapter 11 Bankruptcy.
The  Company  is  currently operating as a Debtor-in-Possession.  The Company is
presently operating under a Cash Collateral Agreement by and between the Company
and  Compass Bank (hereinafter referred to as the "Agreement").  Pursuant to the
terms  of the Agreement, Compass Bank continues to permit the Company the use of
pre-petition  accounts  receivable  collections.  Compass  Bank is the Company's
largest  creditor  with an outstanding claim in the amount of approximately $8.2
million.


                                       14
<PAGE>
Item 2.    Management's Discussion & Analysis of Financial Condition and Results
of  Operations  (Continued)

OVERVIEW (Continued)
--------

The  Company anticipates filing a plan of reorganization within 30 days from the
date  of  the  filing of this 10-Q.  As part of its plan, the Company intends to
continue  to liquidate non-essential equipment and to continue to increase sales
through  its intermodal division.  The plan anticipates replacement financing of
the  present Compass Bank indebtedness.  A plan of reorganization is anticipated
to  be  filed  in this matter in which the Company will propose a workout of its
present  position  and  a  return to profitability. Management believes that the
plan  of  reorganization  should  be  confirmed  by  June  of  2001.

OPERATIONS
----------

As  stated above, the Company operated at a net loss of ($928,538) for the third
quarter  of 2000.  This amount includes a one-time loss of ($236,449) due to the
sale  of  under-utilized equipment.   A comparison of three-month and nine month
figures  for  2000  over  1999  reveals  the  following  increases:

     --------------------------------  --------------------  ------------------
                                       Three Month Change     Nine Month Change
     --------------------------------  --------------------  ------------------
     Revenue                                 40.2%                 49.0%
     --------------------------------  --------------------  ------------------
     Cost of Freight Revenue                 41.1%                 56.7%
     --------------------------------  --------------------  ------------------
     General Administrative Expenses         63.6%                 46.9%
     --------------------------------  --------------------  ------------------

The  Company's operating profits for nine months decreased from $943,812 in 1999
to  $106,999  in  2000  before  interest  expense. Interest expense increased by
approximately  33.4%  over the same period in 1999 primarily due to the increase
in  the  factoring line and reduction of long-term debt at lower interest rates.

SAFE  HARBOR
------------

This  report  on  Form  10-Q  (the  Report)  contains  certain  forward-looking
statements  within  the meaning of Section 27A of the Securities Act of 1933, as
amended,  and  Section  21E  of the Securities Exchange Act of 1934, as amended,
which are intended to be covered by the safe harbors created thereby.  Investors
are  cautioned that all forward-looking statements necessarily involve risks and
uncertainty,  including,  without  limitation, the risk of a significant natural
disaster,  the  expansion  or  contraction in its various lines of business, the
impact  of inflation, the impact of Year 2000 issues, the ability of the Company
to  meet its debt obligation, changing licensing requirements and regulations in
the  United  States  pertinent  to  its  business, the ability of the Company to
expand  its  businesses, the effect of pending or future acquisitions as well as
acquisitions  which  have  recently been consummated, general market conditions,
competition,  licensing  and  pricing.  All statements, other than statements of
historical  facts,  included  or  incorporated  by  reference in the Report that
address  activities,  events  or  developments  that  the  Company  expects  or
anticipates will or may occur in the future, including, without limitation, such
things as future capital expenditures (including the amount and nature thereof),
business  strategy  and  measures  to  implement  such  strategy,  competitive
strengths,  goals,  expansion,  and  growth  of  the  Company's  businesses  and
operations,  plans,  references  to  future  success,  as  well


                                       15
<PAGE>
Item 2.    Management's Discussion & Analysis of Financial Condition and Results
of  Operations  (Continued)

SAFE  HARBOR (Continued)
------------

as  other  statements,  which  include  words  such  as "anticipate," "believe,"
"plan,"  "estimate,"  "expect,"  and  "intend"  and  other  similar expressions,
constitute  forward-looking  statements.  Although the Company believes that the
assumptions  underlying  the  forward-looking  statements  contained  herein are
reasonable,  any  of the assumptions could over time prove to be inaccurate and,
therefore,  there  can  be  no  assurance  that  the  forward-looking statements
included  in  this Report will themselves prove to be accurate.  In light of the
significant  uncertainties  inherent  in the forward-looking statements included
herein,  the  inclusion  of  such  information  should  not  be  regarded  as  a
representation  by the Company or any other person that the objectives and plans
of  the  Company  will  be  achieved.

CORPORATE  FILINGS
------------------

The  Company filed an amendment to its Articles of Incorporation in January 2000
to  clarify the authorized capital stock in the Articles to be 20,000,000 shares
of  common  and  15,000,000  of  preferred.

SIGNIFICANT  EVENTS
-------------------

As  stated earlier, the Company filed for Chapter 11 Bankruptcy on September 25,
2000.


RELATED  PARTY  TRANSACTIONS
----------------------------

None


                                       16
<PAGE>
PART  II.      OTHER  INFORMATION

Item  1.     Recent  Developments  in  Legal  Proceedings

As  of the date of filing hereof, April 17, 2001, the Company is involved in the
following  litigation:

Case  No. EDCV 98-220 RT (VAPx); INTERCARGO INSURANCE CO. V. BURLINGTON NORTHERN
SANTA  FE  RAILROAD,  ET  AL.;  In  the U.S. District Court, Central District of
California.

     Intercargo Insurance Company is suing multiple defendants because a load it
insured  was  misdelivered at the railyard to persons who stole the merchandise.
Defendant  Burlington  Northern  &  Santa  Fe  Railway has cross-claimed against
multiple  other  defendants,  including the Company, for indemnity.  The Company
never  had  custody  or  control  of  the  stolen  merchandise.  The Company has
answered  both Intercargo's claim and Burlington's cross-claim.   The case is in
the  discovery  phase,  after which the Company, seeking dismissal of the claims
against  it, will likely file a motion for summary judgment.   The Company seeks
its  reasonable  and  necessary defense costs by asserting that the actions were
not  brought  with reasonable cause and in the good faith belief that there is a
justifiable  controversy  under the facts and law. The Company's management does
not  believe that this litigation will have any material impact on the Company's
business.   The Company had a formal motion cut off date of November 27, 2000, a
pre-trial  conference  set for December 11, 2000 and a trial date of January 16,
2001.  However,  these  dates are on hold since the case has been stayed pending
resolution  of  the  Company's  Debtor-in-Possession  bankruptcy  filing.

No.  98-0840-1;  PACIFIC  BUSINESS  CAPITAL CORP. V. ESCO TRANSPORTATION CO. AND
MICHAEL  TILL,  INDIVIDUALLY;  In the Chancery Court of Shelby County, Tennessee

     Pacific  Business sued the Company and Mike Till in an attempt to enforce a
security  interest  it  holds  in some property of Intermodal Logistics Co.  The
Company took over the operations of Intermodal, which is more fully described in
the  1997  10K  previously  filed  with  the SEC.  The security interest granted
Pacific  Business  by  Intermodal concerns chattel paper, mainly receivables and
right  to  receivables.  The  agreement  between  the  Company  and  Intermodal
specifically  excludes  receivables  due  and  owing  prior  to  the date of the
agreement,  and  Intermodal  retained  all  rights  to  those  funds.  It is the
Company's  position  and  Mike  Till's  position that they have not violated any
security interest Pacific Business may have; the Company and Mike Till will seek
dismissal  as  expeditiously  as  possible.  Discovery  has  been  served on the
plaintiff in this matter and receipt of the responses  is pending because of the
stay  that  will  be  in  place  pending  resolution  of  the  Company's
Debtor-in-Possession  bankruptcy  filing.

     Case  No. USDC LR-C-99-807; JACKIE BROWN, INDIVIDUALLY AND AS ADMINISTRATOR
OF  THE  ESTATE  OF  KATRINA  BROWN, DECEASED, AND AS HUSBAND OF NANCY K. BROWN,
INDIVIDUALLY  AND  CHRIS BROWN, INDIVIDUALLY  V. ESCO TRANSPORTATION CO. AND JOE
W.  JONES

     This  case  was  pending against the Company as a result of a motor vehicle
accident, which occurred in 1999.  The case resulted in injuries and a fatality.
This  incident  was  settled by mediation on March 30, 2001.  It fell within the
insurance  coverage  limits  maintained  by  the  Company.


                                       17
<PAGE>
Item  1.     Recent  Developments  in  Legal  Proceedings  (continued)

     Case  No.  A2401-200185;  FIRST  CONTINENTAL LEASING, A DIVISION OF BANCORP
SOUTH  VS.  KISER,  INC.,  ESCO  TRANSPORTATION  CO.  AND  ESCO  TRANSPORTATION
ACQUISITION  CORP;  In  the Circuit Court of Harrison County, Mississippi, First
Judicial  District.

     First  Continental  Leasing  is  suing  Kiser,  Inc.,  the Company and ESCO
Acquisition  Corporation  as  a  result  of the management agreement executed in
March, 2000.  The Company's management does not anticipate any liability related
to  this  litigation  and expects a summary disposition in this matter after the
bankruptcy  court  agrees  to  the  retention  of  counsel  that the Company has
retained  in  this  matter.  This  case will be stayed pending resolution of the
Company's  Debtor-in-Possession  bankruptcy  filing.

     Case No. RCV 27092; SEPULVEDA V. ESCO, ET AL., In the Superior Court of the
State  of  California  for  the  County  of  San  Bernardino.

Regina  Sepulveda  is a former cleaning person for the Company's leased premises
in  California; she was allegedly injured when she was leaving the property when
a  gate fell on her as she was closing the gate.  Sepulveda has brought premises
liability  claims  against  the  Company,  the  owner  of  the property, and the
manufacturer/repairer  of  the gate in question.  The Company has requested that
its  insurance  carrier  manage  the case and take over the defense of same. The
Company's  management  does  not  believe  that  this  litigation  will have any
material  impact  on the Company's business.  The case has lagged in development
primarily because plaintiff's counsel has not prosecuted the case vigorously and
there  is not a great deal of activity pending.  Texas counsel will consult with
local  counsel  to determine whether a motion to dismiss the case for failure to
prosecute  is  in  order.  Additionally,  this  case  will  be  stayed  pending
resolution  of  the  Company's  Debtor-in-Possession  bankruptcy  filing.


Item  2.       Changes  in  Securities  -  NONE

Item  3.       Defaults  Upon  Senior  Securities  -  NONE

Item  4.       Submission of Matters to a Vote of Security Holders - NONE

Item  5.       Other  Information

               The  Registrant  reports  under  this  item  information,  not
               previously  reported in a report on Form 8-KA, that effective May
               15,  2000,  Edwis  Selph,  Jr.  officially  resigned  as  the
               Registrant's  Vice President, Secretary/Treasurer and as a Member
               of  the  Board  of  Directors.  On  July  15,  2000  the Board of
               Directors  elected Edwis Selph, Sr. as President, Chief Executive
               Officer  and Secretary. On March 14, 2001, the Board of Directors
               elected  Ken  Gregg,  CPA  to be the Registrant's Chief Financial
               Officer  and  Vice  President,  Finance.


                                       18
<PAGE>
Item  6.       Exhibits  and  Reports  of  Form  8-K.

               (a)  Notification  of  Late  Filing filed with the Securities and
               Exchange  Commission  on  November  15,  2000.

               (b)  Reports  on  Form 8-K. Notice of resignation of officers and
               directors  filed on July 6, 2000. Effective June 30, 2000, Robert
               F.  Darilek  officially  resigned  as  the  Registrant's  Chief
               Financial  Officer  and  Member of the Board of Directors of ESCO
               Transportation  Co.  Effective  June  23,  2000, Robert J. Weaver
               officially  resigned  as President/COO and Member of the Board of
               Directors  of  ESCO  Transportation  Co.  Effective July 6, 2000,
               Bernard  Vlahakis officially resigned as a Member of the Board of
               Directors  of  ESCO  Transportation  Co.


                                       19
<PAGE>
                                   SIGNATURES


Pursuant  to  the  requirements  of  the  Securities  Exchange  Act of 1934, the
Registrant  has  duly  caused  this  report  to  be  signed on its behalf by the
undersigned  thereunto  duly  authorized.



ESCO  Transportation  Co.

/s/  Edwis  L.  Selph,  Sr.                         April 17, 2001
-----------------------------------                 ----------------------------
Edwis  L.  Selph,  Sr.                              Date
President and Chairman of the Board


/s/  Ken  Gregg                                     April 17, 2001
-----------------------------------                 ----------------------------
Ken  Gregg,  CPA                                    Date
CFO,  VP  of  Finance


                                       20
<PAGE>