UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.  20549

SCHEDULE 13G
(Amendment No. 1) 

Under the Securities Exchange Act of 1934

Landstar System Inc
(Name of Issuer)

Common
(Title of Class of Securities)

515098101
(CUSIP Number)

12/31/00
(Date of Event which Requires
Filing of this Statement)

Check the appropriate box to designate the rule pursuant to 
which this Schedule is filed:

[X]  Rule 13d-1(b)
[ ]  Rule 13d-a(c)
[ ]  Rule 13d-1(d)

*The remainder of this cover page shall be filled out or a 
reporting person's initial filing on this form with respect to 
the subject class of securities, and for any subsequent 
amendment containing information which would alter the 
disclosures provided in a prior cover page.

The information required in the remainder of this cover page 
shall not be deemed to be "filed" for the purpose of Section 18 
of the Securities Exchange Act of 1934 ("Act") or otherwise 
subject to the liabilities of that section of the Act but shall 
be subject to all other provisions of the Act (however, see the 
Notes).  

CUSIP No. 515098101     SCHEDULE 13G    Page 2 of 7

1       Name of Reporting Person        
Kestrel Investment Management Corporation
IRS Identification No. of Above Person  94-3173193

2       Check the Appropriate Box if a Member of a Group
(a)     [ ]
(b)     [ ] 

3       SEC USE ONLY

4       Citizenship or Place of Organization

California

5       Sole Voting Power

459,000

NUMBER OF       6       Shared Voting Power
SHARES
BENEFICIALLY                    -0-
OWNED BY EACH
REPORTING       7       Sole Dispositive Power
PERSON WITH
508,000

8       Shared Dispositive Power

-0-

9       Aggregate Amount Beneficially Owned by each Reporting 
Person

508,000

10      Check Box if the Aggregate Amount in Row (9) Excludes 
Certain Shares*       [ ] 

11      Percent of Class Represented by Amount in Row 9

6.1%

12      Type of Reporting Person*

CO, IA

CUSIP No. 515098101     SCHEDULE 13G    Page 3 of 7 

1       Name of Reporting Person                David J. Steirman
IRS Identification No. of Above Person  

2       Check the Appropriate Box if a Member of a Group
(a)     [ ]
(b)     [ ] 

3       SEC USE ONLY

4       Citizenship or Place of Organization

United States

5       Sole Voting Power

459,000

NUMBER OF       6       Shared Voting Power
SHARES
BENEFICIALLY                    -0-
OWNED BY EACH
REPORTING       7       Sole Dispositive Power
PERSON WITH
508,000

8       Shared Dispositive Power

-0-

9       Aggregate Amount Beneficially Owned by each Reporting 
Person

508,000

10      Check Box if the Aggregate Amount in Row (9) Excludes 
Certain Shares*       [ ] 

11      Percent of Class Represented by Amount in Row 9

6.1%

12      Type of Reporting Person*

IN

CUSIP No. 515098101     SCHEDULE 13G    Page 4 of 7 

1       Name of Reporting Person                Abbott J. Keller
IRS Identification No. of Above Person  

2       Check the Appropriate Box if a Member of a Group
(a)     [ ]
(b)     [ ] 

3       SEC USE ONLY

4       Citizenship or Place of Organization

United States

5       Sole Voting Power

459,000

NUMBER OF       6       Shared Voting Power
SHARES
BENEFICIALLY                    -0-
OWNED BY EACH
REPORTING       7       Sole Dispositive Power
PERSON WITH
508,000

8       Shared Dispositive Power

-0-

9       Aggregate Amount Beneficially Owned by each Reporting 
Person

508,000

10      Check Box if the Aggregate Amount in Row (9) Excludes 
Certain Shares*       [ ] 

11      Percent of Class Represented by Amount in Row 9

6.1%

12      Type of Reporting Person*

IN

CUSIP No. 515098101     SCHEDULE 13G    Page 5 of 7

Item 1(a).      Name of Issuer. 

Landstar System Inc

Item 1(b).      Address of Issuer's Principal Executive Offices. 

13410 Sutton Park Drive South
Jacksonville, FL  32224 

Item 2(a).      Names of Persons Filing. 

Kestrel Investment Management Corporation, David J. 
Steirman and Abbott J. Keller.  

Item 2(b).      Address of Principal Business Office or, if none, 
Residence. 

The business address of Kestrel Investment Management 
Corporation, David J. Steirman and Abbott J. Keller is 411 
Borel Avenue, Suite 403, San Mateo, CA  94402.  

Item 2(c).      Citizenship. 

Kestrel Investment Management Corporation is a California 
corporation, David J. Steirman and Abbott J. Keller are 
citizens of the United States of America.  

Item 2(d).      Title of Class of Securities. 

Common

Item 2(e).      CUSIP Number. 

515098101

Item 3. Type of Reporting Person. 

Kestrel Investment Management Corporation is an investment 
advisor registered under Section 203 of the Investment Advisors 
Act of 1940.  David J. Steirman and Abbott J. Keller are the 
sole shareholders of Kestrel Investment Management Corporation.

Item 4. Ownership. 

Reference is made hereby made to Items 5-9 and 11 of pages 
two (2), three (3) and four (4) of this Schedule G, which Items 
are incorporated by reference herein.  

CUSIP No. 515098101     SCHEDULE 13G    Page 6 of 7

Item 5. Ownership of Five Percent or Less of a Class. 

Not applicable.

Item 6. Ownership of More Than Five Percent on Behalf of 
Another Person. 

Kestrel Investment Management Corporation is deemed to be 
the beneficial owner of the number of securities reflected in 
items 5-9 and 11 of page two (2) of this Schedule G pursuant to 
separate arrangements whereby it acts as investment adviser to 
certain persons, in which it also holds an ownership interest.  
Each person for whom Kestrel Investment Management Corporation 
acts as investment adviser has the right to receive or the 
power to direct the receipt of dividends from, or the proceeds 
from the sale of, the common stock purchased or held pursuant 
to such arrangements.  David J. Steirman and Abbott J. Keller 
are deemed to be the beneficial owners of the number of 
securities reflected in Items 5-9 and 11 of page two (2) of 
this Schedule G pursuant to their ownership interests in 
Kestrel Investment Management Corporation

Item 7. Identification and Classification of the Subsidiary 
which Acquired the Security Being Reported on by the Parent 
Holding Company. 

Not applicable. 

Item 8. Identification and Classification of Members of the 
Group. 

Not applicable. 

Item 9. Notice of Dissolution of Group. 

Not applicable. 

Item 10.        Certification. 

By signing below, each of the undersigned certifies that, 
to the best of their respective knowledge and belief, the 
securities referred to above were acquired in the ordinary 
course of business and were not acquired for the purpose of and 
do not have the effect of changing or influencing the control 
of the issuer of such securities and were not acquired in 
connection with or as a participant in any transaction having 
such purposes or effect. 

CUSIP No. 515098101     SCHEDULE 13G    Page 7 of 7 

Signature

After reasonable inquiry and to the best of their 
respective knowledge and belief, the undersigned certifies that 
the information set forth in this statement is true, complete 
and correct. 

DATED:  

DAVID J. STEIRMAN

/s/ David J. Steirman
________________________
David J. Steirman

DATED:  

ABBOTT J. KELLER

/s/ ABBOTT J. KELLER
________________________
Abbott J. Keller

DATED:  

KESTREL INVESTMENT MANAGEMENT CORPORATION

/s/ David J. Steirman
________________________
By:     David J. Steirman
Its:    President